The lobal semiconductor industry is one of the mature as well as promising industries and is expected to grow at a CAGR of 7.5% from 2016 to 2024. Supported by the growth in electronic industry and upcoming innovative products is majorly driving the market growth. 2016 has seen a mixed growth; however, a consistent growth is expected in the year 2017. Microelectromechanical systems (MEMS) replacing nanoelectromechanical systems (NEMS) is one of the best examples this industry has seen and the size of the chips are further expected to decrease in the coming years.
The U.S. has always been the pioneering market for electronic gadgets wherein China is the largest region in the manufacturing of electronic devices be it lighting or display from small toys to mobiles phones and television. China acquires almost half of the market share in the semiconductor sales worldwide. The campaign of moving towards organic is also boosting the growth of the world semiconductor industry proving to be an era of environment-friendly products. ‘Go green’ campaign is accepted all over the world and it is impacting almost all the industry verticals to save the environment. Governments all over the world are making new rules and regulations for manufacturing environment-friendly products.
This industry is also expected to see growth across automotive and industrial sectors. China, Russia, Brazil and India are the major countries driving the growth of the global semiconductor industry. Continuing energy demand and increasing demand for renewable energies are the major factors raising the growth of semiconductor in the industrial sector. Further, the huge customer base of smartphone and tablets is one of the major factors supporting the growth of semiconductors all over the world.
In addition, Internet of Things (IoT) is also expected to raise the growth of the global semiconductor industry. The growth trend of IoT is flourishing, thus helping the semiconductor industry to grow at a fast pace. The benefits associated with IoT is helping the businesses to opt for it and thereby increasing the usage of the semiconductor in IoT. Spending in IoT is primarily driven by transportation, manufacturing, utilities and logistics.
In the coming years, this market is expected to witness robust growth. The demand for a semiconductor related product is expected to rise across several domains such as automotive, electronics and industrial among others in the coming years. Moreover, ongoing research and development and new product launches are also expected to positively drive the growth of the world semiconductor industry. Taking into account the driving factors this industry is expected to see robust growth in the next decade.