Semiconductor Materials Market Research Report - Forecast till 2028

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 2028

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

Semiconductor Materials Market Synopsis


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.


Semiconductor materials are the prime components required during the manufacturing of the integrated circuits and devices. Wafer fab materials are used to pattern the wafer, while the materials that are used to connect or protect the die are known as packing materials. The growing adoption of electronic components by numerous end-use industries to develop multi-property components and offer high-performance parts to the industries is a major factor contributing to the growth of the semiconductor materials market. The material is widely used due to its excellent low conductivity, durability, and are easy to fabricate. Some of the major applications in which the semiconductor materials find significant use are in the electrical and electronics industry for developing microwave ICs, solar cells, photoresistors, high-performance RF devices, radio detectors, LED technology, and others. In the market, semiconductor materials are popular by the trade names: Ikonic, Visionpad, Optiplane, Thermal Gel, PLANAPUR, and SELECTIPUR.


The prime factors driving the growth of the market are surging demand for microelectronic devices due to the trend of portable devices and digitalization, which has increased the consumption and development of wafers in the semiconductor industry. Additionally, the increase in demand for electronics and the growth of the e-vehicles industry across the globe is further expected to boost the market for semiconductor materials during the review period. In 2018, over 90 million units of vehicles were manufactured and expected to reach over 100 million units by 2019, which is likely to fuel the demand for semiconductor materials in the coming years.


Globally, the aerospace industry is witnessing robust growth in terms of overall capacity and production in recent years. In 2018, the aerospace industry contributed to over 15% of the revenue of the global market and is projected to experience considerable growth during the years to follow. The application of semiconductor materials in the manufacturing of solar arrays, antennas, reflectors, heaters, and radio frequency (RF) structures is further expected to propel the growth of the global semiconductor materials market during the forecast period.


Furthermore, rapid urbanization and favorable government policies in the emerging economies such as India, South Africa, China, Brazil, and South Korea, are expected to drive the growth of the semiconductor materials market during the review period.


However, the manufacturing process of semiconductor materials is highly expensive and consumes a large amount of energy, which are factors likely to hinder the market growth during the review period.


Pricing Analysis


In 2018, the silicon wafer of one inch was priced around USD 21 across the globe, while the 6-inch silicon wafer was priced USD 125 per unit. In the same year, the price of photomasks wafers varied from USD 20 to USD 25 per inch. The product has witnessed a gradual rise of USD 13.3 to USD 21.8 per inch from 2015 to 2018 and this trend is likely to continue during the forecast period owing to fluctuating raw material prices.


Key Players



  • 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


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


Market Restraints



  • High manufacturing cost and energy consumption


Segmentation


By Material Type



  • Wafer Fab Materials: The wafer fab materials segment held the largest market share of more than 50% in 2018 and is expected to dominate the market during the forecast period. This is mainly attributed to the increasing application of wafers in miniature electronics devices and others. Some of the wafer fab materials are silicon, photomasks, photoresist, specialty gases, photoresist ancillaries, CMP, and others. Silicon wafer sub-segment holds the major share of the segment among other wafer materials, as it is extensively used across integrated circuits (IC), sensors or detectors, MEMS fabrication, optoelectronic components, and others.



  • Packing Materials: The packing materials are used to protect and prevent the circuits from corrosion and physical damages. The semiconductor devices have various packing materials including substrates, lead frames, die-attach, mold compounds, ceramic packages, encapsulants, bonding wire, and others. The substrates sub-segment is expected to hold a share of over 20% of the packaging materials segment and is expected to witness growth during the forecast period.


By End-Use Industry



  • Consumer Electronics: It is expected to be the largest segment dominate the global market throughout the forecast period. The application of semiconductor wafer and packing materials in various components of mobile devices, wearables, smartphones, wireless charging platforms, and tablets is expected to drive the demand for semiconductor materials during the forecast period. The growing demand for customized and miniature devices is further expected to fuel the segment’s growth.



  • Healthcare: The development of medical devices that exhibit high accuracy and performance has increased the demand for semiconductor materials in the manufacturing of circuits, which is projected to boost the growth of the segment.



  • Automotive: The fastest-growing segment due to the increasing adoption of e-vehicles and several electronic devices in the automotive industry, which is expected to fuel the demand for semiconductor materials during the review period.



  • Aerospace: The increasing production of aircraft (commercial and military) is fueling the growth of the segment. The growth of the segment is expected to boost the global market growth due to a paradigm shift in engineering, design and manufacturing process on the backdrop of increasing demand for defense and commercial aircraft in emerging markets such as India, China, and Brazil, among others.



  • Others: The other segment includes food processing, industrial automation, oil & gas, and consumer goods.


By Region



  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East & Africa


Regional Analysis



  • North America: A well-established semiconductor manufacturing industry and growing adoption of portable devices are propelling the growth of the North American market. In addition, the expanding aerospace industry is likely to boost the product demand in the regional market.



  • Europe: Increasing automobile production and focus on affordable and durable consumer electronics are factors driving the regional market growth.



  • Asia-Pacific: Held the largest market share of over 40% in 2018 and is projected to follow a similar trend during the forecast period. This is primarily due to the high demand for the product in the manufacturing of automobiles, particularly e-vehicles due to their lightweight property and growing aerospace industry in the region. Additionally, the players operating in the major economies of Asia-Pacific such as China, India, Japan, and South Korea are rapidly increasing the production capacities of semiconductor materials. For instance, in April 2018, Hitachi Chemical Co. announced the construction of a new plant to produce advanced functional laminate materials in Taiwan. Additionally, in June 2018, Kyocera Corporation launched a new facility in Japan that aims to increase the production capacity of ceramic microelectronic packages to meet the demand in the region. These developments are expected to propel the growth of the semiconductor materials market in the region during the forecast period.



  • Latin America: The growth of the automotive industry is expected to boost regional market growth during the review period.



  • Middle East & Africa: The use of semiconductors in electronics systems that find applications in the construction industry and renewable energy parts coupled is expected to boost the regional market growth.



Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 74.87 Billion
  CAGR   5.38% (2021 - 2028)
  Base Year   2020
  Forecast Period   2021 - 2028
  Historical Data   2019
  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


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    Frequently Asked Questions (FAQ) :


    semiconductor materials market valuation was USD50.23 billion.

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

    The wafer fab materials segment would lead the semiconductor materials market.

    Consumer electronics would have the bigger share in the semiconductor materials market.

    Asia Pacific would dominate the semiconductor materials market.