Semiconductor Materials Market
Report ID: SQMIG45N2107
Semiconductor Materials Market Size, Share, Growth Analysis, By Product (Fab Materials, Packaging Materials), By Application (Computers, Communications), By Material (Silicon Carbide, Gallium Manganese Arsenide), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45N2107 |
Region:
Global |
Published Date: December, 2024
Pages:
196
|Tables:
0
|Figures:
0
Semiconductor Materials Market Insights
Semiconductor Materials Market size was valued at USD 63.79 Billion in 2023 and is poised to grow from USD 66.72 Billion in 2024 to USD 95.61 Billion by 2032, growing at a CAGR of 4.6% during the forecast period (2025-2032).
As they successfully replace large thermionic devices like vacuum tubes, semiconductors are gaining traction in the electronics sector. The growing trend of electronics becoming smaller is offering rich prospects for the semiconductor materials industry's overall expansion. The growth of this market in developing nations is also being impacted by the growing number of electronics consumers. Applications pertaining to space and satellite energy generation heavily rely on semiconductor materials. As semiconductors have qualities like greater resistance to heat and radiation, they are used in the solar cells that are integrated into satellites. Additionally, semiconductors are being used more often in data storage devices.
The need for data storage devices is rising quickly as more and more sectors generate information from different sources. The expansion of the global semiconductor materials market in recent years has been impacted by several reasons. Additionally, due to the growing demand and the introduction of sophisticated communication facilities and technologies, the communication section of the semiconductor materials industry is expanding at a faster rate. Silicon semiconductors, which are used in wireless communication and mobile gadgets, possess useful characteristics of high speed and efficiency. Urbanization and increase in population are still on the rise which will lead to a higher demand for effective communication. This is expected to drive the global semiconductor materials market growth during the given forecast period.
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Semiconductor Materials Market Segmental Analysis
Global Semiconductor Materials Market is segmented by product, application, material and region. Based on product, the market is segmented into fab materials and packaging materials. Based on application, the market is segmented into computers, communications, consumer goods, defense & aerospace and other. Based on material, the market is segmented into silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide and bismuth telluride. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product
As per categorization by product, the market is classified as fab materials, and packaging materials. Among these, fab materials earned the largest share and continues to hold the dominant global semiconductor materials market share. The global semiconductor materials market is seeing significant innovation in Fab materials, which are crucial for advanced chip production. As industries such as AI and 5G start to rely on stronger and more compact chips, materials like silicon wafers, photoresists, and specialty gases have flourished. Fab materials are leading as they are a major contributor in semiconductor fabrication enabling making sophisticated microelectronics in higher performance, better precision, and higher yield. Their ever-growing evolution propels expansion of the market as well as advances in technology.
Packaging materials are poised to be the fastest-growing segment in the global semiconductor materials market due to the increasing demand for advanced packaging solutions in high-performance devices. With semiconductor components becoming smaller and multifaceted, efficient making of chips is the most crucial factor for increasing performance, enhancing reliability, and managing heat. The growth of technologies such as 5G, artificial intelligence, and the internet of things promotes the adoption of highly integrated packages, thus increasing the need for advanced packaging materials such as underfill, die attach and encapsulants. These developments improve electrical connections and safeguard fragile parts and as a result add notable value in the expansion of the global semiconductor materials industry.
Analysis by Application
The communications segment is dominant in the global semiconductor materials market, driven by innovations in 5G, Wi-Fi 6, and emerging technologies like IoT and cloud computing. To improve signal processing, data transfer rates and connectivity between devices, high-frequency and special compounds and polymers are advanced semiconductor materials. There is a growing requirement for faster and more dependable communication channels and therefore advancements in networks are being supported with semiconductors more than any other device. The need for exceptional materials for high performance is the reason the communication sector is leading, owing to the large usage of mobile devices, data centers and fast wireless communication systems.
The computers segment is set to be the fastest-growing area in the global semiconductor materials market due to the increasing demand for high-performance computing (HPC) and advancements in data processing technologies. Due to the rapid development of advanced technologies like artificial intelligence, cloud services, and big data analytics, there is an increasing need for more powerful and efficient semiconductors. There are developments in related materials such as advanced substrates, memory chips and processing units which, to a great extent, satisfy these needs. With the rise in personal computing, data centers and corporate applications this segment is further driven towards growth making it key towards the development of semiconductor materials market as a whole.
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Semiconductor Materials Market Regional Insights
Asia Pacific dominates the global semiconductor materials market due to its robust manufacturing ecosystem, technological advancements, and strong presence of leading semiconductor companies, particularly in countries like Taiwan, South Korea, Japan, and China. The region has significant semiconductor foundries including TSMC and Samsung which leads to consumption of materials such as silicon wafers, photoresists and packaging services. Furthermore, Asia Pacific has a strong existing supply chain, high level of R & D investment, and government initiatives to promote technology in the region. In addition, the booming economies of a number of industries including consumer electronics, automotive and telecommunications, further enhance the position of Asia Pacific market in the semiconductor materials industry.
North America is the fastest-growing region in the global semiconductor materials market, driven by significant advancements in technology, strong investments in research and development, and increasing demand for high-performance semiconductor devices. This region is rich with major semiconductor industry leaders such as Intel, Applied Materials, and Micron, who are highly innovative. With the emergence of AI, 5G and automotive electronics, and an increasing volume of data centers, there is a greater demand for high-end materials like memory chips, wafers, and packaging. Moreover, the presence of supportive government measures as well as the need to ensure supply chain security can also be blamed, to a great extent, for the fast-paced growth of semiconductor materials market in North America.
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Semiconductor Materials Market Dynamics
Semiconductor Materials Market Drivers
Technological Innovations in Semiconductor Inserted Devices
- Continuous technological innovations in semiconductor devices, such as smaller, more efficient chips for applications in AI, 5G, and IoT, are driving the global semiconductor materials market. The demand for advanced materials like high-performance semiconductors, memory chips, and specialized substrates is growing as industries seek to enhance processing power and device capabilities.
Growing Consumer Electronics Demand
- The expanding consumer electronics sector, particularly smartphones, laptops, and wearables, is a key driver of the semiconductor materials market. Considering the growing preference for sophisticated devices by consumers, the need to address the annoyance of semiconductor devices at high speed and low energy consumption is increasing efficiently creating more demand for sophisticated materials.
Semiconductor Materials Market Restraints
Supply Chain Disruptions
- Global semiconductor materials face significant supply chain challenges, including raw material shortages and logistical bottlenecks. Due to their nature, such factors, further accentuated by various political factors and natural occurrences make availability of some essential components such as silicon wafers as well as rare earth elements difficult, results in production slow down and increased expenses, thus limiting the growth of the market.
Intense Market Competition
- The global semiconductor materials market is highly competitive, with numerous global players vying for market share. The threat of price competition and the need for continuous improvements put a strain on profit levels which creates hurdles for the firms in resourcing themselves with new technological resources. Such coercive tactics in competition, more so in Europe and saturated markets, are limiting growth mobility for new entrants.
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Semiconductor Materials Market Competitive Landscape
The competitive landscape of the global semiconductor materials industry is characterized by a mix of established players and emerging companies focused on innovation. By advancing technologies associated with semiconductor fabrication, Intel, TSMC, Samsung Electronics, Applied Materials and ASML have all become the foremost players in the market. Such companies assist in creating high functioning materials such as silicon wafers, photoresists and packaging solutions allowing them to maintain their dominance in the fast expanding and competitive market of semiconductors.
Top Player’s Company Profiles
- Sumco Corporation (Japan)
- Shin-Etsu Chemical Co., Ltd. (Japan)
- Siltronic AG (Germany)
- GlobalWafers Co., Ltd. (Taiwan)
- REMI Co., Ltd. (Japan)
- Dow Corning Corporation (USA)
- JSR Corporation (Japan)
- Versum Materials, Inc. (USA)
- Showa Denko K.K. (Japan)
- Merck KGaA (Germany)
- Entegris, Inc. (USA)
- Tokyo Ohka Kogyo Co., Ltd. (Japan)
- Air Products and Chemicals, Inc. (USA)
- Linde plc (UK)
- Air Liquide S.A. (France)
- Furukawa Electric Co., Ltd. (Japan)
- UBE Industries, Ltd. (Japan)
- Daicel Corporation (Japan)
- Huatian Technology Co., Ltd. (China)
- Jiangsu Zhongxin Fluoromaterials Co., Ltd. (China)
Recent Developments
- In September 2024, Intel made an announcement about the finishing of its new semiconductor manufacturing facility located in Ohio, USA. The factory will be a cutting edge and high-performance plant focused mainly on producing advanced semiconductor materials such as chips and wafer for the rapidly growing sectors of AI, 5G and self-driving cars. This progression enhances Intel's material leadership position in the semiconductor industry.
- In August 2024, ASML unveiled its next generation lithography apparatus using extreme ultraviolet light, ever more precise layering of semiconductors. This development will raise the performance of chips thus allowing the making of small devices with improved functionality. ASML's EUV technology is a cornerstone in the fabrication of next-generation semiconductor materials, and it is expected to facilitate the growth of the global semiconductor materials industry.
- In July 2024, Micron Technology introduced an improved upgrade of the DRAM memory chips based on application specific integrated circuits which is suited for artificial intelligence and machine learning. The chips made from sophisticated semiconductor materials will bring about quick data processing and higher energy efficiency. It is projected that such an innovation from Micron will help in addressing the growing needs for high performance computing in different sectors.
Semiconductor Materials Key Market Trends
- Shift Toward Sustainable Semiconductor Materials in Manufacturing: In response to environmental issues surrounding the production of semiconductors, they are taking steps to include sustainability by incorporating eco-friendly materials and energy efficient manufacturing processes. Emission of carbon and generation of waste has been a major factor in the invention of greener semiconductor materials alongside low-impact substrates and use of recycled materials in due partnership with the global sustainability agenda.
- Integration of Semiconductor Materials in Automotive Industry: The increase of electric and autonomous vehicles, which are becoming very popular, has led to increased consumption of semiconductor materials in the automotive sector. In modern vehicles, advanced semiconductors have become important for power management, communication and sensor systems contributing to the market growth since the automotive sector is reliant on high end chips.
Semiconductor Materials Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, in conclusion, the global semiconductor materials market is experiencing significant growth driven by innovations in semiconductor devices, particularly in AI, 5G, and IoT applications. The increasing demand for high-performance semiconductors, memory chips, and advanced substrates is further fueled by consumer electronics, automotive, and communications sectors.
Although there are several challenges such as the supply chain crisis and cut-throat competition in the market, the market is growing at a fast pace, with leading players at the forefront of innovations in chip technologies. There is high growth potential for the global semiconductor materials market due to the changing needs for miniaturization and enhanced functionalities of chips and the emergence of new applications.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 63.2 billion |
| Market size value in 2031 | USD 93.92 billion |
| Growth Rate | 4.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Semiconductor Materials Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Semiconductor Materials Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Semiconductor Materials Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Semiconductor Materials Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Semiconductor Materials Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Semiconductor Materials Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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