Future Horizons: Exploring the Semiconductor and Electronics Market Trends of 2034

Semiconductor & Electronic Component Market Forecast (2024 to 2034)

The worldwide semiconductor & electronic component market is presently valued at US$ 1,396.61 billion for 2024 and is projected to grow at a CAGR of 8.7% to achieve US$ 3,223.17 billion by 2034.

The design and assembly processes of electronic elements have experienced a transformation thanks to miniaturization, the assimilation of new technologies in the Industrial Internet of Things (IIoT), and enhanced connectivity enabled by 5G.

Moreover, the key elements driving the increasing need for semiconductor and electronic components include the industrial sector’s rising requirements for IoT and automation devices inspired by Industry 4.0 policies, the increased capital investment by foundries, and the growing demand for MEMS sensors, all of which contribute substantially to the overall growth of the semiconductor & electronic component market.

The production of semiconductor and electronic parts encompasses designs and engineering, assembly, manufacturing, and testing services for printed circuit board (PCB) assemblies and semiconductor and electronic elements.

This facilitates investment in automated assembly apparatuses for original equipment manufacturers. The production demand is on the rise in the current market landscape, given that nearly all electronic devices, from computers and laptops to smartphones, rely on integrated circuits (ICs), printed circuit boards (PCBs), and other packaging solutions.

Consumer electronics represent one of the leading sectors witnessing heightened demand for semiconductors and electronic components. The increasing reliance on the internet and other digital technologies, alongside innovations, is making devices more affordable.

Regularly, devices with enhanced performance and capabilities are launched into the marketplace. These devices now feature thousands of electronic components in compact areas due to the demand for such improvements in functionality, which boosts the need for semiconductor and electronic component manufacturing services.

Wearable technology and personal computers have also followed this same trajectory. Manufacturers desire less time spent connected. Numerous producers, including Samsung, Oppo, and Motorola, supply these fast-charging adapters out of the box, and their marketing strategies hinge on rapid charging. The usage of more semiconductors and electronic components is necessary as power adapters operate at much higher voltages and currents. This, in turn, is driving the market size for semiconductor & electronic parts.

What are the Factors Driving the Increased Sales of Semiconductors?

“Rising Demand for Semiconductors in the Production of Miniature Gadgets”

With the increasing capability to create diminutive gadgets for various applications, the miniaturization revolution is redefining the technology industry. From wearable devices to medical implants, nanoscale electronics are revolutionizing multiple sectors.

Market players are concentrating on designing and manufacturing tiny electronic components, which enables industries to integrate them into products equipped with advanced features while minimizing their overall ecological footprint. Miniaturization also opens up new potential functions and usability without expanding the product’s dimensions, thus keeping space available within the casing.

• Toshiba Electronic Devices & Storage Corporation unveiled a 100V N-channel power MOSFET utilizing Toshiba’s next-generation U-MOS X-H technology in June 2023. The primary applications for this product include hot-swapping circuits and switching circuits on industrial gear used in data centers and communication base stations.

By connecting everyday items, such as smart homes and factories, and enhancing real-time data collection, the expanding use of the Internet of Things (IoT) is rapidly transforming various industrial sectors. Low-power microcontrollers and secure communication protocols are innovations that are paving new and expanding opportunities within the electronics manufacturing field.

As the Internet of Things continues to grow, there exist more opportunities for these components owing to the heightened demand for sensors, wireless communication modules, microcontrollers, and various other elements to facilitate connection, device management, and data collection. Numerous companies are developing specialized components to meet the demands posed by Internet of Things applications.

• Powercast, a specialist in wireless power, and Nichicon, a producer of electronic components, came together in June 2023 to enable radio frequency charging of Nichicon’s new Small Lithium Titanate Oxide Rechargeable Batteries in compact devices, including medical gadgets, IoT sensors, and wireless thermometers.

What Obstacles are Hindering Manufacturers from Achieving Maximum Profits?

“Challenges in Quality Management Emerging as a Significant Issue”

Due to fluctuations in market demand and pricing variations impacting the overall expense of components, it consistently poses a challenge to harmonize quality and cost-effectiveness within electronic components. Additionally, these components may become obsolete as a result of shifts in market requirements, manufacturer exits, or technological advancements.

The outdated electronic components involve manual or reactive methods, which lead tolengthy processing times, human mistakes, and excessive costs for the business. Additionally, numerous electronic parts degrade due to mechanical pressure, high voltage, and elevated temperatures. By curbing the growth of the electronic components sector, the persistent threat of such system failures limits the application of these parts.

Country-wise Insights

The entire globe is progressing towards technological innovation, which is propelling semiconductor sales to surge even more quickly. Some of the key nations contributing to this semiconductor & electronic component market share include the United States, China, Canada, India, and South Korea.

Why is the United States Leading in Sales within the North American Region?

“Established IT Sector Supporting Semiconductor Production”

The United States possesses a robust IT sector that plays a critical role in semiconductor manufacturing. With a diverse range of technology firms and research institutions, the country has nurtured an ecosystem conducive to innovation and collaboration.

This atmosphere facilitates rapid technological advancements and streamlined manufacturing processes, guaranteeing high-quality semiconductor merchandise. Moreover, substantial investments in research and development have bolstered the capacity and competitiveness of more manufacturers in the United States.

What is China’s Position in Semiconductor Production?

“Exporting Semiconductors to Various Countries Making Market Profitable for Manufacturers”

China’s swift growth in semiconductor production can be linked to proactive government policies and significant investments in the sector. The authorities view semiconductors as a crucial industry necessary for national security and economic progress, resulting in considerable funding and backing for local manufacturers.

This has further led to the establishment of multiple semiconductor facilities and research hubs, bolstering the country’s production capabilities. Additionally, China’s vast market provides a significant customer base for semiconductors, enabling manufacturers to enjoy economies of scale.

Category-Wise Assessment

A variety of products and services are launched in semiconductors to enhance the efficiency and effectiveness of electronic components. Notable profitable segments include printed circuit boards, tubes, and capacitors, which positively influence semiconductor & electronic component market dynamics.

Which Products and Services are Yielding Notable Profits in the End Market?

“Semiconductors and Associated Devices Becoming More Valuable Than Printed Circuit Boards”

Semiconductors and associated devices have become exceedingly lucrative products within the end market. This trend arises from the rising demand for sophisticated electronic components utilized in various applications, including smartphones, laptops, and IoT devices.

In comparison to conventional printed circuit boards, semiconductors provide enhanced efficiency and functionality, allowing manufacturers to produce smaller, more powerful devices. The swift technological innovations and the prevalence of smart technologies are propelling this transition.

Which Major Market is Gaining Significant Popularity in the Present Day?

“Extensive Adoption of Semiconductors by Computer & Peripheral Manufacturers”

The semiconductor segment is undergoing remarkable growth and gaining favor, establishing itself as a cornerstone of contemporary technology. As the global demand for electronics escalates, the dependence on semiconductors, particularly among computer peripheral manufacturers, has intensified.

These components are essential for the functionality and performance of devices such as keyboards, mice, and printers. The ongoing digital transformation, accelerated by remote work and heightened online activity, has propelled semiconductors to the forefront.

Competitive Landscape

Major entities in the semiconductor & electronic component sector are concentrating on continual product expansion and making substantial investments in research and development.

• To broaden the choice of products accessible to electronics designers and purchasers and equip them with a comprehensive portfolio to meet their specific application needs, TTI, Inc., a distributor in the electronic components sector, partnered with Rosenberger, a producer of high-voltage, high-frequency, and fiber-optic interconnect solutions, in January 2024.
• Littelfuse, Inc. introduced the SM10 Varistor, a Metal Oxide Varistor designed to provide exceptional short-term surge protection in electronics, electric vehicles, and other applications, in January 2024.

Fact.MR offers in-depth insights regarding the pricing strategies of key suppliers in the semiconductor & electronic component market positioned globally, along with sales growth, production capacity, and anticipated technological advancements in this new market report.

Segmentation of Semiconductor & Electronic Part Market Research

• By Product & Service :

  • Semiconductor & Related Devices
  • Capacitors, Resistors, Coils, Transformers, and Other Inductors
  • Printed Circuit Boards
  • Electronic Connectors
  • Tubes
  • Other Electronic Components

• By Major Market :

  • Computers & Computer Peripheral Manufacturers
  • Communications & Network Equipment Manufacturers
  • Consumer Electronics Manufacturers
  • Automotive Manufacturers
  • All Other Customers

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa