Agency: The global semiconductor market will exceed US$1 trillion in 2030, and the automotive sector is the most promising

According to Taiwan media reports, DIGITIMES semiconductor analyst Eric Chen pointed out that the compound annual growth rate of global semiconductor sales from 2021 to 2030 will reach 7%.

In recent years, the semiconductor industry has boomed. It is estimated that by 2030, the global semiconductor scale will exceed US$1 trillion, with a compound annual growth rate of 7%. Automotive is considered the most promising semiconductor market.

In 2021, the global semiconductor market size will be US$556 billion, of which computing will account for about 38%, communications will account for 33%, and the total will exceed 70%, while automotive, industrial and consumer electronics will each account for about 10%. Analysts predict that global semiconductor sales will exceed $1 trillion by 2030 as demand surges. The communications and computing market is still expected to account for more than 60 percent of sales. Based on the huge commercial potential, the compound annual growth rate of automobiles is expected to exceed 10% in the next ten years, while the sales growth of the industrial sector is also higher than the industry average.

Specifically, the computing industry is expected to grow to $360 billion at a CAGR of 6 percent; communications to $318 billion at a CAGR of 6 percent; and automotive to grow to $145 billion at a CAGR of 12%; the industrial sector will grow to $130 billion, with a compound annual growth rate of 9%; the sales of consumer electronics equipment will grow to $84 billion, with a compound annual growth rate of about 6%.

Factors Driving Market Growth

According to DIGITIMES, the growth trajectory of the computing industry will flatten as demand for personal computers (PCs) and other business notebooks saturates. But on the other hand, emerging data centers will provide semiconductor companies with ample opportunities, driving server shipments and demand for HPC chips.

Communication applications are mainly contributed by mobile infrastructure, which will drive the demand for semiconductors, including mobile APs, base station CPUs, radio frequency components, power devices or optoelectronics.

As environmental awareness grows, Taiwan plans to stop buying gasoline-powered cars and promote electric vehicles (EVs). This has encouraged automakers to actively develop various types of hybrid electric vehicles (HEV) or battery electric vehicles (BEV). Automotive semiconductor suppliers will benefit from a surge in demand for components such as sensors, computing and control chips. Today in the automotive industry, the adoption of electronic systems is exploding. Automation, electrification, and vehicle-to-everything (V2X) communication systems will bring huge business opportunities to the automotive market.

The Internet of Things (IoT) is expected to drive the growth of the semiconductor industry at both industrial and consumer levels. In addition to core computing and control chips, radio frequency components and sensors are also key components. For industrial applications, the demand for power and analog ICs is higher due to higher power requirements.