July 19, 2024
Microelectronics Market

Microelectronics Market Propelled by Rising Adoption in Consumer Electronics

Microelectronics refer to integrated circuits chips and sensors used in commercial and industrial applications. They offer highly advanced digital and analog capabilities, embedded intelligence and connectivity. Consumer electronics heavily employ microelectronics components including processors, memory, sensors and RF technology to deliver innovative features and functionality in devices like smartphones, wearables, laptops and home appliances. The rising demand for advanced consumer electronics worldwide is driving the adoption of microelectronic components across various categories.

The global Microelectronics Market is estimated to be valued at US$ 544041.47 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The rapidly growing consumer electronics industry worldwide is a major factor propelling the microelectronics market growth. As consumer preferences evolve at a rapid pace, electronics brands are focusing on enhancing the features and performance of their devices through advanced microelectronics integration. For instance, wearables, AR/VR devices, gaming consoles and accessories require high-end microprocessor chips, memory storage and wireless connectivity capabilities to deliver enhanced user experience. Moreover, the Internet of Things trend is catalyzing the demand for “smart” home appliances and industrial equipment integrated with microelectronics and sensors. All these trends are expected to drive continued innovation as well as volume demand in the microelectronics market over the forecast period.

SWOT Analysis
Strength: Microelectronics market offers innovative products and solutions such as semiconductor chips, sensors, display devices etc. which meets the demand from industries like automotive, healthcare, telecommunications etc.
Weakness: High initial investment and risks involved in research and development activities. Frequent technological shifts forces companies to invest continuously to keep pace with latest trends.
Opportunity: Growing adoption of IoT, connectivity solutions, wearable devices etc. increases the scope for microchips, memory devices etc. Rise in demand for electric vehicles opens new areas for microelectronics applications.
Threats: Impact of trade war, geopolitical tensions on raw material supply and prices. Competition from low-cost Asian manufacturers poses pricing pressure.

Key Takeaways
Global Microelectronics Market Size is expected to witness high growth over the forecast period driven by newer applications 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 13% over the forecast period 2023 to 2030.

Regional analysis

The Asia Pacific region dominates the microelectronics market currently accounting for over 40% share globally led by countries like China, Taiwan, South Korea etc. This is attributed to presence of raw material sources and large semiconductor foundries with cost advantages. The region is expected to continue its dominance in future as well supported by rising electronics demand from nascent industries like electric vehicles here.

Key players operating in the microelectronics industry are IBM Corporation, CGI Group Inc., Accenture PLC, Deloitte LLP, AT&T Inc., PWC LLP, GE Healthcare Limited, and Syntel Inc. Over the past few years, major players have increased their investments in development of newer and advanced chips, memory solutions through mergers, acquisitions and strategic collaborations to gain technology edge over competitors and cater to evolving industry needs.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it