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Global Semiconductor Devices Outlook, 2022
The Convergence of 5G, IoT, and AI/ML and Advancements in Mobility (led by EVs and AVs) will Lead to Accelerated Demand for Semiconductor Devices Across all Process Nodes
03-Mar-2022
Global
Market Outlook
The global semiconductors industry registered growth in 2020 after declining by 12.0% in 2019. Growth in 2020 was attributed to the increasing sales of notebooks, tablets, and datacenter (DC) products.
In 2021 (and beyond), growth will be driven by the technology convergence of connectivity and AI/ML, which will be the core of product development activities across all verticals. The increased deployment of 5G, the rising adoption of 5G smartphones, the increasing electronics content in automotive, the migration to EVs and AVs, factory automation, and the proliferation of IoT devices in smart homes are key trends that will drive future market growth.
Smartphones and PCs, which were traditionally viewed as key indicators for semiconductor market performance, will not remain the sole indicators, going forward. Market participants will witness significant customer base expansion across several verticals (automotive, most importantly).
While the semiconductor devices market witnesses a surge in demand, the lack of sufficient capacity is restraining revenue realization opportunity in the short term. Beyond the demand-supply gap, the market also faces several challenges, including the geopolitical chaos and the skills shortage.
In such a scenario, it is important to understand the demand for semiconductor devices in the short term and the key growth opportunities from 2022 to 2025; as a result, stakeholders can develop strategies and action plans to accelerate growth.
This Frost & Sullivan study aims to provide an outlook of the semiconductor devices market for 2022. It identifies emerging trends and growth opportunities across key end users and regions. Some important aspects—from a device standpoint—include evolving design, technology nodes, and materials across emerging applications such as AI, 5G, IoT, EVs, connected cars, and AVs. The study also aims to understand the impact of the chip shortage, supply chain issues, and the impact of the US-China trade war. It highlights significant technological innovation across equipment, equipment subsystems, material, and technology nodes.
Key Issues Addressed
- Will the semiconductor devices market grow in 2022 or will it witness a decline in demand?
- What are the key underlying trends? What are the important market growth drivers?
- Will the demand-supply gap ease in 2022?
- How does the demand for end-user products impact market growth? How do the technological trends in end-user verticals impact growth?
- Are new companies expected to enter this space?
- Which verticals should be prioritized to realize short-term growth opportunities?
- What are the key growth opportunities across different end-user verticals?
- Are new semiconductor device classes emerging?
Author: Prabhu Karunakaran
Key Highlights
Key Challenges
Revenue Forecast
Top Predictions for 2022
Why Is It Increasingly Difficult To Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Semiconductor Devices Market
Growth Opportunities Fuel the Growth Pipeline Engine™
Research Scope
Market Segmentation
COVID-19 Impact on Global GDP Growth (by Quarter)
COVID-19 Impact on GDP Growth for Key Regions and Countries (by Quarter)
COVID-19 Impact and Forecast GDP Growth for Key Regions
Impact of China’s Energy Crisis on the Global Semiconductor Devices Market
Impact of China’s Energy Crisis on the Global Semiconductor Devices Market (continued)
Why did the Semiconductors Industry Land in this Scenario?
The Chip Shortage—Primarily due to the Large Demand-Supply Gap
How Long is the Chip Shortage Expected to Last?
Is Fab Capacity Addition the Only Way to Overcome the Chip Shortage?
Revenue by Sector, 2020–2022
Revenue by Region, 2021 and 2022
Revenue by Segment, 2018–2022
Revenue by Segment, 2018–2022 (continued)
Key Predictions for 2022
Prediction 1—High-volume Sales of Mid-level 5G-enabled Smartphones will be a Critical Growth Factor in 2022
Prediction 2—The Rising EV Adoption will Drive Semiconductors Industry Growth
Prediction 3—AVs will Increase Semiconductor Usage and Employ Advanced Technology Nodes
Prediction 4—The Convergence of IoT and Edge Intelligence will Drive the Adoption of Semiconductor Devices
Prediction 5—Dominance of NVMe, New Flash Technologies, and Rising Demand for HCI will Drive Opportunities in Accelerated Storage
Prediction 6—Industry 4.0 Implementation will not only Scale Demand for Semiconductors but will also Improve the Operational Efficiency of Fabs
Smartphone Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Companies to Watch out for
Key Companies
Key Trends
Key Trends (continued)
Personal Computing Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Companies to Watch Out for
Key Companies
Datacenter Semiconductor Devices Segment—A Snapshot
What Drives the Need to Scale Datacenters?
Key Growth Opportunities, 2021–2025
Companies to Watch Out for
Key Companies
Key Trends, Accelerated Storage
Key Trends, Accelerated Storage (continued)
Key Trends, Accelerated Storage (continued)
Networking Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Key Growth Opportunities for Small Cells, 2021–2025
Companies to Watch Out for
Key Companies
Key Trends, 6G
Consumer Electronics Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Companies to Watch Out for
Key Companies
Key Technology Trends, Edge AI
Automotive Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Companies to Watch Out for
Key Companies
Industrial Semiconductor Devices Segment—A Snapshot
Key Growth Opportunities, 2021–2025
Companies to Watch Out for
Key Companies
2022 Predictions—North America: The United States
2022 Predictions—Europe (Including Israel)
2022 Predictions—Asia-Pacific: Japan and South Korea
2022 Predictions—Asia-Pacific: China
2022 Predictions—Asia-Pacific: Taiwan
2022 Predictions—Rest of Asia-Pacific
Growth Opportunity 1—Industry 4.0 Implementation to Reduce the Demand-Supply Gap
Growth Opportunity 1—Industry 4.0 Implementation to Reduce the Demand-Supply Gap (continued)
Growth Opportunity 2—Advancements in SSDs to Drive Storage Demand in Datacenters
Growth Opportunity 2—Advancements in SSDs to Drive Storage Demand in Datacenters (continued)
Growth Opportunity 3—Development of Strategic Partnerships with Automotive Value Chain Stakeholders to Drive EV and AV Growth
Growth Opportunity 3—Development of Strategic Partnerships with Automotive Value Chain Stakeholders to Drive EV and AV Growth (continued)
Key Conclusions
Partial List of Abbreviations and Acronyms Used in the Study
List of Exhibits
List of Exhibits (continued)
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Key Issues Addressed
- Will the semiconductor devices market grow in 2022 or will it witness a decline in demand
- What are the key underlying trends What are the important market growth drivers
- Will the demand-supply gap ease in 2022
- How does the demand for end-user products impact market growth How do the technological trends in end-user verticals impact growth
- Are new companies expected to enter this space
- Which verticals should be prioritized to realize short-term growth opportunities
- What are the key growth opportunities across different end-user verticals
- Are new semiconductor device classes emerging
Author: Prabhu Karunakaran
| Deliverable Type | Market Outlook |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Prabhu Karunakaran |
| Industries | Electronics and Sensors |
| WIP Number | K6B2-01-00-00-00 |
| Keyword 1 | Semiconductor Devices |
| Keyword 2 | Semiconductor Industry Growth |
| Keyword 3 | semiconductor market |
| Is Prebook | No |
| GPS Codes | 959,495,939,952 |