Semiconductors Market- An Irreplaceable Commodity of this Technology Driven Age

As per the market outlook foreseen by the IndustryARC business intelligence report titled “Semiconductor Market: By Type (Intrinsic Semiconductor, Extrinsic Semiconductor); By Components ( Seals, Filters, Mass flow Controllers, Valves, Others); By Instrument (Collection, Monitoring, Data Measurement, Others); By Subsystem (Robotics, Vacuum, Power Conversion, Others)); By Process (Water Production, Wafer Fabrication, Doping, Masking, Etching, Others); By Application (Networking &Telecommunication, Energy, Automotive, Computing, Consumer Electronics, Sports & Fitness, Others)& Geographic Analysis - Forecast (2018-2023),” artificial intelligence (AI) is the key driver for the semiconductor market. Owing to the AI functionality for linguistic analytics, data processing, image recognition and speed recognition used by a wide array of industries, its chips fabrication is increasing, directly influencing the semiconductor market growth. 

In this age of technology gripping every aspect of our day-to-day assessment, imagining a world without electricity is beyond the analytical faculty of our mind. Over this aspect, the semiconductors market size is undergoing an unprecedented growth. They are the most fundamental component with adjustable electrical conductivity, integrated into electronic devices to be employed by various sectors ranging from basic transistors in electric switches to complex smart grid, automotive, artificial intelligence, consumer electronics, gaming and healthcare. The sheer affluence of the market across the globe can be indicated by the fact that the export revenue in 2017 exceeded an astonishing value of $58.4 billion, a remarkable 7.2 percent surge from 2016. Some examples of semiconductor materials are silicon, germanium, and gallium arsenide.

Semiconductor market share is growing at a vigorous pace. This assertion can be confirmed by the fact that, out of the top 20 companies listed on Forbes Digital 100 List of 2018, 6 companies are direct associates of the semiconductor market. 

According to the International Energy Agency, more than 3 million electric vehicles were under utility by consumers in 2017, a value that exceeded by 54% in comparison with the preceding year. This data summarizes the robust and evident infusion of electric and electronic devices in the automobile sector. Electronics have captured a major share of 30% in an automobile production cost with global positioning system (GPS) products, smartphone connectivity, and infotainment systems. The automotive sector in itself is a rapidly growing industry with production rates consistently increasing in various countries such as India (5.83%), China (3.19%), and Japan (5.31%) as of 2017. Thus the applications of electrical components in the rapidly evolving and robustly growing automotive industry selling millions of cars each year is set to stroke the semiconductors market with abundant demand.

As per the Consumer Electronics Association, the value recorded for electronics devices sales in 2015 was US$220 billion relatively higher and showcasing abundant growth than the $197 billion recorded in 2012. A major share of this gigantic sector is dominated by smartphones with 6 billion units estimated to hold the market in 2020. Complementary metal oxide semiconductor (CMOS) used in image sensors is all set to enter this stride due to its low power consumption rate, which is a major necessity in smart devices. Owing to the billion dollar smartphones and tablets industry, the semiconductor market is full of opportunities to divert a good share of revenue from consumer electronics industry.

Semiconductors make the world smarter and more connected. Maturing technologies such as AI, VR and IoT amid countless others grips terrific potential for future growth due to this phenomenon. The Semiconductor Industry Association revealed in February 2019 that the semiconductor sales increased by 13.7 % to $468.8 billion and industry witnessed an unprecedented sales record of shipping 1 trillion units for first time in 2018.