Silicon wafer market to reach $18 billion by 2031

The semiconductor silicon wafer market valued at USD 12.52 billion in 2023, is expected to grow at a CAGR of 4.7% during 2023–2031 and reach USD 18.09 billion by 2031, according to a report by the Insight Partners.

The growth in the sector is being attributed to the emergence of 5g and the increasing miniaturization of electronic devices.  

Growing investments in 5G help improve connectivity and raise the demand for connected devices. 5G technology adoption is also raising the demand for semiconductors, which led companies such as Samsung and TSMC to initiate production of 5G chips on their 7 nm process node. Therefore, the emergence of the 5G network fuels the semiconductor silicon wafer market growth, the report says.

Industries are increasingly adopting fabless manufacturing as it helps them to focus on innovation and design without incurring the enormous capital costs associated with developing and maintaining fabrication facilities. Furthermore, the emergence of new semiconductor applications that use AI, IoT, and automotive technologies results in increased demand for specialized chips, further driving the semiconductor silicon wafer market, the report says.

The demand for tablets, smartphones, wearables, and other consumer electronics devices, such as smartwatches, fitness trackers, VR headsets, and headsets, is increasing worldwide. According to the Groupe Speciale Mobile Association (GSMA), smartphone adoption across the globe was 76% in 2022, totaling 6.4 billion smartphone connections. The adoption is expected to reach 92% by 2030, making 9 billion connections worldwide.

 As semiconductors such as silicon wafers can be used to manufacture chips and microchips in electronic devices, their demand is increasing worldwide. 

In addition, silicon wafers are used for the production of ICs, which are one of the important parts of various electronic devices, further boosting their demand, the report said.