Semiconductor market to reach $1 trillion by 2030
According to projections, the semiconductor revenue in China is expected to be around USD 295.06 billion by 2030, with a CAGR of 7.36% during the years 2024-2030.
The value of the semiconductor market was USD 556.59 billion in 2023, which is expected to reach nearly USD 1 trillion by 2030 at a strong CAGR of 6.21% between 2024 and 2030, according to a report by Maximize Market Research.
The rapid growth in the semiconductor industry is primarily due to rapid technological development, along with broader application of semiconductors across the different sectors.
Semiconductors enable modern communications, computing, healthcare, military systems, transportation, clean energy, and many other applications. As the technology landscape is rapidly changing due to new technological advancements in the field of AI, IoT and 5G networks, the need for complex semiconductor devices has risen tremendously, according to a media release.
The rising use of AI technologies requires sophisticated semiconductors that can accommodate intricate calculations. Specialized AI workloads-enabled High Bandwidth Memory (HBM) is poised for hyper growth, with bit growth and revenue expected to grow at a 64% CAGR and 58% CAGR, respectively, from 2022 to 2028, the report said.
The US semiconductor industry is expected to grow substantially, with forecasts calling for an increase of domestic fabrication capacity of 203% by 2032. The expansion will increase the US percentage of global fabrication capacity from 10% to 14%.
China will continue to be the semiconductor market juggernaut with the industry coming in at USD 179.48 billion in 2023. According to projections, the semiconductor revenue in China is expected to amount to approximately USD 295.06 billion by 2030, with a CAGR of 7.36% during the years 2024 - 2030.
Europe’s semiconductor market was USD 53.47 billion in 2023 and is estimated to be nearly USD 97.30 Billion by 2030, at a CAGR of 8.93% from 2024 to 2030.
Japan depends heavily on semiconductors to support its electronics and automotive industries. With an emphasis on R&D, as well as joint ventures and diversification efforts between the state and private entities, the country is striving to achieve faster semiconductor production rates. Back home, Japan has focused its supply chain initiatives on cornering the highly advanced componentry needed to drive chips in a bid to cater to domestic and global demand.
India has been emerged as an important player for semiconductor in the world with a market size estimated to be USD 27.72 billion in 2023. Thus, the Indian semiconductor market is anticipated to witness a CAGR of 17.1% from 2024 to 2030, ultimately reaching an estimated market size of USD 84.69 billion by 2030.
