According to a report by Maximize Market Research, the semiconductor market was valued at $556.59 billion in 2023, and it is expected to reach nearly $1 trillion by 2030, with a compound annual growth rate (CAGR) of 6.21% from 2024 to 2030.
The rapid growth of the semiconductor industry is mainly attributed to the fast development of technology and the wider application of semiconductors in various fields.
Semiconductors support modern communications, computing, healthcare, military systems, transportation, clean energy, and many other applications. Due to new technological advancements in artificial intelligence (AI), the Internet of Things (IoT), and 5G networks, the technological landscape is changing rapidly, and the demand for complex semiconductor devices has significantly increased.
The growing prevalence of AI technology requires advanced semiconductors capable of handling complex computations. The report states that high-bandwidth memory (HBM) dedicated to supporting AI workloads will experience rapid growth, with a bit growth rate and revenue CAGR of 64% and 58%, respectively, from 2022 to 2028.
The U.S. semiconductor industry is expected to grow substantially, with U.S. manufacturing capacity projected to increase by 203% by 2032. This expansion will raise the U.S.’s share of global manufacturing capacity from 10% to 14%.
China will continue to be a semiconductor market giant, with the semiconductor industry size expected to reach $179.48 billion in 2023. It is predicted that by 2030, China’s semiconductor revenue will reach approximately $295.06 billion, with a CAGR of 7.36% from 2024 to 2030.
In 2023, the European semiconductor market size was $53.47 billion, and it is expected to reach nearly $97.3 billion by 2030, with a CAGR of 8.93% from 2024 to 2030.
Japan heavily relies on semiconductors to support its electronics and automotive industries. Japan emphasizes research and development, as well as joint ventures and diversification efforts between state-owned and private entities, striving for faster semiconductor productivity. Domestically, Japan focuses its supply chain plans on highly advanced components needed for monopoly-driven chips to meet both domestic and global demand.
India has become an important player in the global semiconductor field, with the market size expected to reach $27.72 billion in 2023. As a result, India’s semiconductor market is expected to have a CAGR of 17.1% from 2024 to 2030, reaching a market size of $84.69 billion by 2030.
As the semiconductor market moves towards the trillion-dollar mark, the industry will also see new generations of technology driving continuous emerging applications, including AI and its new intelligent applications, AI PCs and AI smartphones, new energy vehicles, and industrial applications. AI is expected to play an increasingly important driving role.
According to SEMI’s global vice president and China president, Ju Long, there is a mutually reinforcing relationship between AI and semiconductors. AI innovation drives the continuous growth of the semiconductor industry, while the computational power provided by graphics processing units (GPUs) makes AI applications possible. The two complement each other. The past two years have been the explosive year for generative AI, and generative AI applications are expected to enter an explosive period. The relationship between AI and semiconductor technology will accelerate the shaping of the industry’s future and influence its direction.
Emilie Jolivet, the director of Yole’s semiconductor division, believes that the semiconductor industry, especially the processor field, is undergoing two major transformations: the adoption of smaller chips and the rise of generative artificial intelligence. Since the release of ChatGPT in November 2022, generative AI has rapidly gained momentum, driving a significant increase in AI chip and memory chip shipments in 2023. With global tech giants heavily investing in AI servers to build their infrastructure, the adoption rate of generative AI has surged. These trends will drive growth in the semiconductor market over the next five years.
“Generative AI is one of the most important opportunities in the semiconductor industry,” says Handel Jones. It is predicted that by 2030, generative AI will impact more than 70% of semiconductor products, significantly reducing design costs and improving semiconductor manufacturing efficiency.
The industry believes that in the coming years, AI will drive the semiconductor industry toward the trillion-dollar level. In the AI era, integrated circuit applications face enormous space for innovation, including in sensors, storage, communication, security, and energy. AI will generate more and more innovation and growth opportunities in these areas.
China’s semiconductor industry has a solid development foundation in terms of technological innovation, market demand, and industrial ecosystem. As the world’s largest consumer electronics market, China’s demand for semiconductor products continues to grow. With the rapid development of emerging technologies such as IoT and AI, the demand for semiconductor products in the Chinese market will further increase, providing significant market opportunities for China’s semiconductor industry.
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Sourcing from Maximize Market Research
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