Semiconductor Materials Market Analysis - Global Industry Size, Share, Trends and Forecast 2022 - 2030

The Global Semiconductor Materials Market size was valued at USD 55,824 Million in 2021 and is expected to reach USD 82,421 Million by 2030 growing at a CAGR of 4.5% during the forecast timeframe from 2022 to 2030.

Semiconductor materials are a critical innovation in the semiconductor and consumer electronics industry. This is due to their broad temperature range, high electronic conductivity, and high energy efficiency. Semiconductors are the pure elements such as germanium or silicon, or complexes like cadmium selenide or gallium arsenide. Semiconducting materials range in price and availability from cheap silicon to expensive rare earth elements. Semiconductors are needed for the development of field-effect transistors, solar panels, Internet of Things detectors, and self-driving car connectors. However, the semiconductor material market is expected to be driven by increased product use in various electronic applications such as electronic solar cells, electronic film coatings, and integrated circuits.

Moreover, the digital revolution is fundamentally reliant on semiconductor devices and the materials used in their manufacture. As traditional semiconductor materials reach their physical boundaries, composite innovations are poised to take their place. The market for these components, combined with new semiconducting applications, is having an impact on industrial production and material sourcing throughout the industry.

Semiconductor Materials Market Dynamics

Drivers

• Increasing demand for wireless technology
• The global adoption of smartphones is increasing
• Deployment of 5G technology
• Increase in the number of data centers and cloud services

Restraints

• High production costs
• Price fluctuations in raw materials

Opportunity

• The digital revolution has permeated the entire industry
• Adoption of IoT-based technology

Report Coverage

Semiconductor materials are an important factor in the electronics industry. This is due to the exceptional benefits they provide to everyday electronics and electrical instruments, such as high electrical conductivity, a broad temperature range, and environmental friendliness. Major manufacturers have been able to replace traditional thermoelectric devices, which made electronic items heavy and unportable, by using materials such as gallium arsenide and germanium silicon. As a result, these materials are commonly used in the production of electronic components such as electrodes, circuitry, and embedded chips. Furthermore, the availability of these relatively small electronics has greatly aided in the production of microelectronic and smart electronic devices, which are driving the semiconductor material market trend. Furthermore, the Internet of Things (IoT) and increased demand for consumer electronics such as mobile phones, laptops, and tablets are propelling the semiconductor material market growth in the coming years.

However, a scarcity of skilled machinists and the high cost of manufacturing are limiting the semiconductor materials market's revenue growth.

Semiconductor Materials Market Segmentation

The global semiconductor materials market segmentation is based on material, product type, application, and region.

Market by Material

• Silicon Carbide
• Copper Indium Gallium Selenide
• Gallium Manganese Arsenide
• Molybdenum Disulfide
• Bismuth Telluride

Based on the material, the silicon carbide segment is expected to hold significant market shares in the coming years. Silicon carbide is a semiconductor material composed of silicon and carbon. Silicon carbide particles can be formed together to form exceptionally tough ceramics used in high endurance applications. Silicon carbide is widely used in semiconductor technology due to its properties such as its ability to work at high temperature and pressure or overvoltage, or even both, and its build ability. The declining semiconductor sector registered strong growth in 2021 due to robust demand from network infrastructure and the consumer electronics industry, as professionals in many industries preferred work-from-home options throughout 2020. Furthermore, worldwide demand for smart electronics products is growing at an exponential rate, creating opportunities for the silicon carbide sector to grow. Aside from that, multiple factors such as increased consumption for drive systems, compact transmission capacity, and increased utility of silicon carbide in mobile networks and electrostatic field devices are driving the silicon carbide segment's growth during the forecast period.

Market by Product Type

Fab Materials

• Electronic Gases
• Photomasks
• Silicon
• Photoresists Ancilliaries
• Sputtering Targets
• Process Chemicals
• Other Fabrication Materials

Packaging Materials

• Lead Frames
• Substrates
• Bonding Wire
• Ceramic Packages
• Die Attach Materials
• Encapsulation Resins (Liquid)
• Other Packaging Materials

In terms of product type, the fab material segment will have the largest market share in 2021. Silicon wafers, industrial gases, wet chemicals, chemical mechanical polishing slurry and pads, sputter targets, photomasks, photoresists for semiconductors, photoresists for EUV, electromagnetic chucks, IC lead frames, and other materials are frequently used in semiconductor fabrication. One of the key factors driving the growth of the semiconductor fabrication material segment is the increasing use of fully digitized ICs in the electronic and electrical, automobile industries, and telecommunications industries. Furthermore, one of the primary drivers of the semiconductor fabrication material market is the growing expansion of semiconductor devices due to advancements in semiconductor solutions.

Market by Application

• Computers
• Communications
• Consumer Goods
• Defense & Aerospace
• Other

Based on application, the consumer goods segment is expected to grow at the fastest rate in the market over the next few years. Consumer electronics are electronic devices that are not for commercial use. Consumer electronics include computer systems, laptop computers, portable devices, wearable technology, television, refrigerators, cell phones, and household appliances. Market participants' ongoing R&D investments in the development of future consumer electronic products with advanced functionality will drive market growth in the coming years.

Semiconductor Materials Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa