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Semiconductor Materials Market Research Report - Forecast till 2030

Semiconductor Materials Market Information: By Material Type (Wafer Fab Materials, Packing Materials), By End-Use (Consumer Electronics, Healthcare, Automotive, Aerospace, Others) and By Region- Forecast to 2030

ID: MRFR/CnM/7133-HCR | February 2021 | Region: Global | 185 pages

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Semiconductor Materials Market Overview


According to MRFR analysis, Semiconductor Materials Market is projected to be worth USD 74.87 billion by 2028, registering a CAGR of 5.38% during the forecast period (2021 - 2028), The market was valued at USD 55.42 billion in 2020.


The semiconductor materials are those of which the conductivity can be controlled according to the requirements. Semiconductors are gaining momentum in the electronics industry as they are effectively replacing bulky thermionic devices such as vacuum tubes. The increasing inclination towards the miniaturization of electronics is presenting lucrative opportunities for the overall growth of the Semiconductor materials industry. The increasing consumer base for electronics is also impacting the Semiconductor materials market growth in developing countries. Therefore the Semiconductor materials market value is expected to grow with a healthy CAGR of 4.17% during the forecast period. 


 


The key market players such as Soitec and Kokusai Electric Corporation have joined hands with a leading substrate innovation center that is located in France. Such collaborations and acquisitions are helping the overall growth of the semiconductor materials industry. Moreover, the advancements in consumer electronics such as 5G technologies, multi-core architectures are further propelling the overall growth of the semiconductor materials industry in recent times.


 


COVID 19 Analysis:


 


The semiconductor materials industry was also affected negatively owing to the widespread of the COVID 19. The shutting down of the industries and disruptions in the supply chain in the countries like China are impacting the semiconductor materials market growth. Moreover, the declining market share of the end-user industries such as consumer electronics across the globe is also affecting the overall growth of the Semiconductor materials industry. 


 


Market dynamics:


 


Market drivers:


 


Semiconductor materials are intensively utilized in the space-related applications energy-generating department of the satellites. The solar cells integrated into the satellites utilize the semiconductors materials due to the properties such as higher resistance to radiation and warmth. 


 


The utilization of semiconductors is increasing in data storage devices as well. As the industries are increasingly generating information from various sources, the demand for data storage devices is rapidly increasing. Such factors are impacting the Semiconductor materials market growth in recent years.


 


Market opportunities:


 


The communication segment is witnessing a higher growth rate in the semiconductor materials industry, owing to the increasing demand and the advent of advanced communication technologies and facilities. Mobiles and wireless communications are utilizing silicon semiconductors which exhibit favorable characteristics such as higher speed and efficiency. The growing population and urbanization continue to increase the demand for effective communication and such factors are expected to boost the semiconductor materials market growth during the forecast period.


 


The beneficiary features of the semiconductor materials such as higher temperature limits and flexible electron mobility are propelling the manufacturers of electronic devices to utilize the semiconductors for energy customization. Moreover, the light-emitting diodes and lasers are intensively utilizing semiconductor materials for several light-emitting applications in industrial verticals. The growth in these applications is presenting lucrative opportunities for the Semiconductor materials market growth.


 


Market restraints:


 


The lack of a skilled workforce and the requirement of higher costs for manufacturing are considered as the major market restraints of semiconductor materials. Although there have been several advancements in internet connectivity, and several other growth opportunities, the manufacturing capacity of semiconductor materials is not meeting the demand. 


 


The customer needs towards consumer electronics are changing and are affecting the overall growth of the semiconductor materials industry.


 


Market challenges:


 


The requirement of abundant raw materials for the manufacturing processes and the contractual manufacturing sites and the distribution centers are considered as the major challenges for the overall growth of the semiconductor materials industry.


 


The escalating manufacturing costs and the short life span of the semiconductor materials are considered as the primary challenges for the Semiconductor materials market growth.


 


Cumulative growth analysis:


 


The Semiconductor materials market value is currently dominated by a few of the leading market players such as LG chem Ltd., Kyocera Corporation, Hitachi Chemical Company. However, the emerging market players are also adopting technological advancements and product innovations and partnering with leading suppliers and end-user industries to boost their business. Such factors are propelling the overall growth of the Semiconductor materials industry in recent years. Therefore the market value of the Semiconductor materials industry is expected to increase from USD 4795.51 million, which was registered in the year 2020, to USD 69.82 billion by the year 2027 while registering a CAGR of 26.7% during the forecast period.


 


Value chain analysis:


 


The semiconductor materials market value is highly influenced by electronic devices such as laptops, smartphones, and computers, and so on. The demand for electronic devices has been rapidly increasing in recent years owing to the growing urbanization and industrialization. Recently, GaN semiconducting materials are gaining momentum owing to emerging applications in the field like Optoelectronics. The GaN semiconductors are utilized in the place of SiC-based semiconducting materials in recent times owing to the higher electron mobility and stability in the operations even under higher temperatures. The growing demand for IoT technologies and the rising consumer base for consumer electronics are propelling the overall growth of the Semiconductor materials industry in recent times. Moreover, the growth of the Semiconductor materials industry is highly influenced by the growth of major end-user industries such as consumer electronics, manufacturing, automotive, energy and utilities, and significant others. 


 


The modern technology in electronics that promotes the miniaturized structure in them is considered as the major market driver of the semiconductor materials industry. The semiconductor materials such as silicon, germanium, gallium arsenide, were efficiently replacing the vacuum tubes which makes the electronics bulky. Such factors are propelling the manufacturers of electronics to incorporate semiconductor materials. Moreover, the utilization of semiconductors in the aerospace industry which includes solid-state relays, contractors, and VLF transmitters are increased in recent years owing to the increasing aerospace industrial operations.


 


Segment overview:


 



  • Silicon Carbide

  • Gallium Manganese Arsenide

  • Copper Indium Gallium Selenide

  • Molybdenum Disulfide

  • Bismuth Telluride


 


Based on application:


 


Fabrication


 



  • Silicon Wafers

  • Electronic gases

  • Photomasks

  • Photoresist ancillaries

  • CMP Materials

  • Photoresists

  • Wet chemicals

  • Others


 


Packaging:


 



  • Leadframes

  • Organic Substrates

  • Ceramic Packages

  • Encapsulation Resins

  • Bonding Wires

  • Die-Attach Materials

  • Others


 


Based on the end-user industry:


 



  • Consumer Electronics

  • Manufacturing

  • Automotive

  • Energy and Utility

  • Others. 


 


Regional analysis:


 


Currently, North America is holding the highest Semiconductor materials market share owing to their efficient management and supply chain operations despite the rising consumption in the Asia-pacific region. The economic condition and the presence of established market players in the region have enabled the country to maintain the first-class design and offer an increased production rate. The GaN semiconductor is increasingly produced in the region as it is intensively utilized in LED lightings and wireless technologies. The demand for GaN semiconductors is increasing as the demand for LED lightings is rapidly increasing across the region. Moreover, the presence of renowned semiconductor manufacturing facilities across the region and the growing adaptation of portable devices are propelling the overall growth of the semiconductor materials industry across North America.


 


On the other hand, the Asia-pacific region is exhibiting a market share of 40% in recent times and is expected to witness healthy growth in the forecast period. The production rate of the electric vehicles, automobiles, and growing aerospace industry across the region are presenting a lucrative opportunity for Semiconductor materials market growth across the Asia-pacific region.


 


Competitive landscape:


 



  • BASF SE

  • Cabot Microelectronics

  • DowDuPont

  • Hemlock Semiconductor

  • Henkel AG

  • Air Liquide SA

  • Avantor Performance Materials

  • Hitachi High-Technologies

  • Honeywell Electronic Materials

  • JSR Corporation

  • Tokyo Ohka Kogyo America

  • Mitsui High-Tec


 


Recent developments:


 


In the year 2019, one of the leading market players, MEMC Korea CO has started a new silicon wafer plant in South Korea which aims to expand the supply channel of the semiconductor materials across the region against the export issues. The company also stated that over 9% of the imports can be compensated with domestic production.


 


In the year 2020, one of the leading market players, Hitachi Chemical Co Ltd has invested over USD 3 billion for the expansion of the manufacturing facility. The investment is primarily to manufacture the polishing material “nano-ceria slurry” which polishes the semiconductor materials.


 


Report overview:


 


This report has covered:



  • Market overview

  • COVID 19 Analysis

  • Market dynamics

  • Cumulative growth analysis

  • Value chain analysis

  • Segment overview

  • Regional analysis

  • Competitive landscape

  • Recent developments


 


Segmentation Table:


 


Based on material:


 



  • Silicon Carbide

  • Gallium Manganese Arsenide

  • Copper Indium Gallium Selenide

  • Molybdenum Disulfide

  • Bismuth Telluride


 


Based on application:


 


Fabrication


 



  • Silicon Wafers

  • Electronic gases

  • Photomasks

  • Photoresist ancillaries

  • CMP Materials

  • Photoresists

  • Wet chemicals

  • Others


 


Packaging:


 



  • Leadframes

  • Organic Substrates

  • Ceramic Packages

  • Encapsulation Resins

  • Bonding Wires

  • Die-Attach Materials

  • Others


 


Based on the end-user industry:


 



  • Consumer Electronics

  • Manufacturing

  • Automotive

  • Energy and Utility

  • Others. 



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2028: USD 74.87 Billion
  • 2030 : Significant value
  •   CAGR   5.38% (2022 - 2030)
      Base Year   2021
      Forecast Period   2022 to 2030
      Historical Data   2019 & 2020
      Forecast Units   Value (USD Billion)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Material Type, End-Use and Region
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   BASF SE (Germany) – PLANAPUR series, SELECTIPUR series, LG Chem Ltd (South Korea), DowDuPont (US) – EKC, Visionpad, IC1000, Indium Corporation (US) – EZ-Pour, Shin-Etsu MicroSi, Inc. (Japan) – TIM series, Novolak, Hitachi Chemical Co Ltd. (Japan) – GPX, AH series, HIATTACH, N-CS series, Caplinq Corporation (Canada), UTAC Holdings Ltd. (Singapore) – GQFN, Sumitomo Chemical Co., Ltd. (Japan) – SUMIRESIST, SUMIKARAN, Nichia Corporation (Japan), Intel Corporation (US), Kyocera Corporation (Japan) – AO700, CT series, Henkel AG & Company, KGaA (Germany) – LOCTITE
      Key Market Opportunities   High manufacturing cost and energy consumption
      Key Market Drivers

  • High demand for small-sized gadgets with complex functionalities.
  • Increasing demand for semiconductors in end-use industries is likely to fuel the demand for semiconductor materials.
  • Widespread use in the aerospace industry for multi-functional and high-performance parts or components.
  • Development of new designs has increased the need for high-performance semiconductor materials


  • Speak to Analyst Ask for Customization

    Frequently Asked Questions (FAQ) :

    semiconductor materials market valuation was USD50.23 billion.

    semiconductor materials market CAGR would be 5.38% during the forecast period.

    • Increasing demand for the microelectronic devices • Increasing adoption of the portable devices • Increasing digitalization • The increasing consumer base for consumer electronics.

    • BASF SE • Cabot Microelectronics • DowDuPont • Hemlock Semiconductor • Henkel AG • Air Liquide SA • Avantor Performance Materials • Hitachi High-Technologies

    • Silicon Carbide • Gallium Manganese Arsenide • Copper Indium Gallium Selenide • Molybdenum Disulfide • Bismuth Telluride

    The costs incurred in manufacturing the wafers are considered as the major challenge in the growth of the semiconductor material industry.