Semiconductors - GCC

Revenue in the Semiconductors market is projected to reach US$295.50m in 2024.
Optoelectronics dominates the market with a projected market volume of US$140.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.41%, resulting in a market volume of US$403.10m by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

Region

Region comparison

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Analyst Opinion

The Semiconductors market in GCC is experiencing significant growth and development due to various factors. Customer preferences in the GCC region are driving the demand for semiconductors. With the rapid digitalization and technological advancements in the region, there is a growing need for semiconductors in various industries such as telecommunications, automotive, healthcare, and consumer electronics. Customers in the GCC are increasingly seeking advanced and high-performance semiconductor solutions to meet their evolving needs. Additionally, the demand for energy-efficient semiconductors is also on the rise as customers in the region are becoming more conscious about sustainability and environmental impact. Trends in the market indicate a strong growth trajectory for the semiconductors industry in the GCC. The increasing adoption of Internet of Things (IoT) devices, artificial intelligence (AI), and automation technologies is driving the demand for semiconductors. These technologies require advanced microchips and processors, which are essential components of semiconductors. Furthermore, the GCC governments' focus on diversifying their economies and promoting innovation is creating a favorable environment for the growth of the semiconductors market. This is evident from the establishment of research and development centers, technology parks, and incubators in the region, which are driving the demand for semiconductors. Local special circumstances in the GCC region also contribute to the development of the semiconductors market. The region has a well-established infrastructure and logistics network, which enables efficient supply chain management for semiconductors. Additionally, the GCC countries have favorable business and investment policies, attracting multinational semiconductor companies to establish their presence in the region. This has resulted in increased competition and innovation in the market, benefiting customers with a wider range of semiconductor solutions. Underlying macroeconomic factors further support the growth of the semiconductors market in the GCC. The region's strong economic growth, driven by industries such as oil and gas, construction, and tourism, creates a conducive environment for investment in semiconductors. Furthermore, the GCC governments' initiatives to diversify their economies and reduce reliance on oil revenues are driving investments in technology and innovation, including the semiconductor industry. Additionally, the region's young and tech-savvy population, coupled with high disposable incomes, is fueling the demand for advanced electronic devices and driving the growth of the semiconductors market. In conclusion, the Semiconductors market in GCC is experiencing significant growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for advanced and energy-efficient semiconductors, coupled with the adoption of IoT, AI, and automation technologies, is fueling the growth of the market. The GCC region's favorable business environment, well-established infrastructure, and government initiatives to promote innovation are attracting multinational semiconductor companies and driving competition and innovation in the market. The strong economic growth and young population in the region further support the growth of the semiconductors market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.