Microelectronics components are widely used in semiconductor devices such as integrated circuits (IC), memory chips, microprocessors and sensors used in various electronic devices. Growing demand for miniature consumer electronic products coupled with advantages of microelectronics such as low power consumption, high performance and compact size is driving the growth of the market.
The global Microelectronics Market is estimated to be valued at US$ 544041.47 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
IoT enables physical devices to connect and exchange data with other devices over the internet. This allows remote monitoring and automation of devices. Various microelectronics components such as sensors, memory chips and microprocessors are vital components used in IoT devices. Growing adoption of IoT across industries for applications such as connected transportation, smart homes, industrial manufacturing etc. is expected to drive the demand for microelectronics. Rapid technological advancements have increased the capabilities of microelectronics, making them suitable for complex IoT applications. The increasing connectivity of devices fueled by IoT is estimated to provide significant opportunity for growth of the microelectronics market during the forecast period.
Porter’s Analysis
Threat of new entrants: The microelectronics market requires large investments in R&D for product development. Established players enjoy economies of scale which create significant entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power as they can choose from a large number of established players providing microelectronic solutions. However, switching costs are high if buyers change suppliers for a specific application.
Bargaining power of suppliers: A few large semiconductor wafer fabrication facilities and equipment suppliers exist. This provides them bargaining power against buyers in this market.
Threat of new substitutes: There is low threat of substitution as microelectronics have applications across various industries and new technologies are complementary.
Competitive rivalry: The market is dominated by a few large players. Intense competition exists on the basis of technology, quality, reliability and pricing.
SWOT Analysis
Strengths: Continuous technological innovations, demand from various end-use industries, focus on R&D by key players.
Weaknesses: High R&D and manufacturing costs, intense competition, issues related to intellectual property and trade secrets.
Opportunities: Growth of IoT, advanced driver-assistance systems, growing semiconductor industry.
Threats: Cyclical nature of electronics industry, trade barriers, stringent government regulations.
Key Takeaways
The Global Microelectronics Market Size is expected to witness high growth during the forecast period due to growing demand for semiconductor chips across industries. The global Microelectronics Market is estimated to be valued at US$ 544041.47 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the market currently owing to the presence of leading wafer fabrication facilities and a large semiconductor manufacturing base in countries such as Taiwan, South Korea, and China.
Key regional trends in the microelectronics market include the rise of fabless chip design companies in countries like India and growing electronics manufacturing hub in Southeast Asia driven by lower costs. Several government initiatives are promoting local manufacturing which is attracting foreign investments.
Key players operating in the microelectronics market are Honeywell International Inc., United Technologies Corporation, Crestron Electronics, Inc., Cisco Systems, Inc., Ingersoll-Rand PLC, Schneider Electric SE., Johnson Controls Inc., Acuity Brands, Inc., ADT Corporation, Control4 Corporation, and Others. The players are focusing on new product development through investments in R&D as well as mergers and acquisitions for portfolio expansion.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it