Semiconductors - NAFTA

NAFTA

Revenue in the Semiconductors market is projected to reach US$136.50bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$124.20bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.76%, resulting in a market volume of US$217.40bn 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

Currency

Analyst Opinion

The Semiconductors market in NAFTA is experiencing significant growth due to several key factors.

Customer preferences: Customers in the Semiconductors market in NAFTA are increasingly demanding products that offer higher performance and increased functionality. This is driving manufacturers to develop and produce semiconductors that are smaller, faster, and more energy-efficient. Additionally, customers are placing a greater emphasis on connectivity and are seeking semiconductors that enable seamless integration with other devices and platforms.

Trends in the market: One of the major trends in the Semiconductors market in NAFTA is the increasing demand for semiconductors in the automotive sector. As vehicles become more technologically advanced, the need for semiconductors to power various systems and features is growing. This includes semiconductors for infotainment systems, advanced driver assistance systems (ADAS), and electric vehicle components. The growing popularity of electric vehicles is also driving the demand for semiconductors in this sector. Another trend in the Semiconductors market in NAFTA is the rise of the Internet of Things (IoT). As more devices become connected to the internet, the need for semiconductors to enable this connectivity is increasing. Semiconductors are essential for IoT devices to communicate with each other and with the cloud. This trend is driving the demand for semiconductors in industries such as healthcare, manufacturing, and smart homes.

Local special circumstances: The Semiconductors market in NAFTA is also influenced by local special circumstances. For example, the United States is home to several major semiconductor companies, which gives it a competitive advantage in terms of research, development, and production capabilities. This has led to a strong domestic market for semiconductors in the United States. Additionally, NAFTA has a strong focus on innovation and technological advancement. This creates a favorable environment for the growth of the Semiconductors market, as companies are encouraged to invest in research and development to stay competitive in the global market.

Underlying macroeconomic factors: The Semiconductors market in NAFTA is also influenced by underlying macroeconomic factors. For example, economic growth in the region is driving increased consumer spending, which in turn is fueling demand for electronic devices and components. This is driving the demand for semiconductors, as they are a key component in electronic devices such as smartphones, tablets, and computers. Furthermore, the increasing adoption of advanced technologies such as artificial intelligence, virtual reality, and autonomous vehicles is driving the demand for semiconductors. These technologies require high-performance semiconductors to process and analyze large amounts of data in real-time. In conclusion, the Semiconductors market in NAFTA is experiencing significant growth due to customer preferences for higher performance and increased functionality, as well as the increasing demand for semiconductors in the automotive sector and the rise of the Internet of Things. Local special circumstances, such as the presence of major semiconductor companies and a focus on innovation, further contribute to the growth of the market. Underlying macroeconomic factors, such as economic growth and the adoption of advanced technologies, also play a significant role in driving the demand for semiconductors in the region.

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.