Microelectronics refers to the subfield of electronics engineering concerned with miniaturization of electronic devices mainly involved in data storage and processing. Microelectronic devices comprise integrated circuits, microprocessors, memory chips, sensors and micro-electro-mechanical systems used in various sectors from computing and communications to healthcare and automotive. The demand for microchips has accelerated due to growing digitization and proliferation of smart connected devices driving trends like Industry 4.0, IoT, edge computing and 5G connectivity.
The Global Microelectronics Market is estimated to be valued at US$ 626735.78 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 To 2031.
Advancements in semiconductor technology have enabled greater functionality and performance of devices while reducing costs making computing more ubiquitous. This has led to widespread Microelectronics Market Growth for data-driven applications in industries as well as individual consumers. However, challenges exist with supply chain disruptions, vulnerabilities in microchip designs, and geopolitical issues affecting key manufacturing locations.
Key Takeaways
Key players operating in the Microelectronics market include IBM Corporation, CGI Group Inc., Accenture PLC, Deloitte LLP, AT&T Inc., PWC LLP, GE Healthcare Limited, and Syntel Inc. These companies are investing in R&D to develop more powerful, energy efficient and affordable chips for a variety of verticals.
Growing digitization and analytics trends across almost every industry are fueling demand for data centers, servers, networking equipment, AI/ML hardware accelerators and edge computing devices requiring microelectronics components. Meanwhile, proliferation of IoT devices along with increasing smartphone and wearable sales are other major drivers.
The Microelectronics Market is undergoing global expansion with new fabs coming up in various countries and alliances to reduce reliance on specific geographies. Companies are collaborating to build secure multi-vendor supply chains and address demand from new markets like Africa and South America.
Market key trends
Security of supply chains and digital trust are major concerns in the microelectronics industry today. Emerging technologies like homomorphic encryption, hardware security modules and substrate-level integrity checking aim to enhance the trustworthiness of chips against threats like counterfeiting and hardware Trojans.
Porter’s Analysis
Threat of new entrants: Limited number of global players makes barrier to entry quite high, especially in areas like semiconductor manufacturing which requires huge investments.
Bargaining power of buyers: Large buyers like automobile, electronics industries have significant bargaining power over suppliers due to their large orders and ability to play suppliers against each other.
Bargaining power of suppliers: Suppliers of key inputs like chip components, raw materials have consolidated over years and thus wield influence over smaller buyers dependent on their supply.
Threat of new substitutes: Alternatives to key components and materials are limited given technological boundaries and need for compatibility across ecosystem.
Competitive rivalry: Competition is intense among top players to gain technology and market leadership given lucrative nature of this industry power driven by digital transformation.
Geographical Regions
Asia Pacific accounts for over 50% of global microelectronics market value led by countries like China, Taiwan, South Korea, and Japan which are major manufacturing and exporting hubs.
North America registers fastest value growth currently fueled by rising semiconductor demand from automobile, networking sectors in United States driven by connectivity and electric vehicles trends.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile