Semiconductor technology carries the capability to completely transform literally every industry. Effect of which, silicon wafers are observing exceptional demand from businesses and governments. That is why there is massive funding and support to the Silicon Wafer Market is observing increased financing and assistance from the public and private bodies as well. With significant funding from OEMs, the marketplace value is estimated to observe great returns in the future.
Silicon wafer is a crucial fabric for semiconductor fabrication, which is observing its adaptability in all categories of electronics appliances and elements. It is utilized for the manufacture of ICs and other electronic products. Silicon wafer works as a substratum in the middle of the microelectronic components and endures several fabrication procedures. With digitalization and electronic mobility being some of the modern movements in the technology evolution, are acquiring wide adaptability in a variety number of devices and one of the key aspects driving demand from the semiconductor.
The stage is set for Silicon Wafer Market to observe favorable progression opportunities throughout 2021-2027 with a definite usage expectation in the areas of the renewable energy sector, power electronics, consumer electronics, automobile, and telecommunication segments. This is the reason why market research by Market Watch reveals that “The semiconductor silicon wafer market was valued at USD 9.85 billion in 2019 and is expected to reach USD 13.64 billion by 2025”. Now we will see the areas responsible for shooting up the market of silicon wafers and the semiconductor industry.
Power electronics is another of the prime focus areas driving the silicon wafer market, the MarketsandMarkets research reveals that the power electronics market is projected to grow from USD 37.4 billion to USD 46.3 billion throughout 2021-2026. In this overall projection, research estimates that Silicon-based power electronics dictate the power electronics market. Especially the SiC and GaN technology has offered a significant rise in efficiency of semiconductor devices and are expected to play a major role in power electronics.
Digital technologies not only changed businesses, even the common man around the globe. That is the reason why we see a massive demand for consumer electronics. There is a significant increase in the embracing of smartphones, personalized devices, and another digital-savvy customer base is raising skyrocketing across the globe. The Consumer Electronics and Home Appliances Market is expected to grow by $ 2.12 bn during 2021-2025. Due to the pandemic, due to lack of supply of silicon wafers, the consumer electronics industry faced severe losses.
To leverage the computing capabilities of Artificial intelligence, it is important to have dedicated hardware to run computations of that higher scale. This is the juncture where the demand for AI chips has come. Research and Markets research reveals that “The Global Artificial Intelligence (AI) Chip Market was valued at USD 9.29 billion in 2019, and is estimated to garner USD 253.30 billion by 2030, at a CAGR of 35.0% during the forecast period between 2020 and 2030.” Few other research reports state that AI chips share in the overall AI market accounts to close to 12 percent.
Looking at the scale of demand and the role AI chips are expected to exhibit, the McKinsey report concedes that “AI-based semiconductors will evidence a rise that is approximated to 18 percent yearly in the years to come, which is 5x times larger than the semiconductors market in other sectors. By 2025, AI devices demand project that the semiconductors marketplace estimates approximately 20 percent of the overall requirement, and the financials is somewhere $67 billion. semiconductor enterprises are anticipated to secure great value (somewhere around forty to fifty percent) in the overall AI technology stack”.
(Read more about AI Chip’s impact on Silicon Wafer industry)
More specifically the immense raise of awareness for clean energy is driving solar energy sector market value crazy like never and people opting for electric cars is also another factor that is gaining more traction which is expected to drive silicon wafer industry demand immensely. Especially to improve the efficiency of energy generation, storage, and supply, silicon carbide wafers are used in power electronic components to improve the efficiency of the devices.
The increasing incorporation of smart electronic gadgets and other control systems in automobile systems is enhancing the market growth of the semiconductor industry and worldwide automotive semiconductor market value which is USD 37.41 billion in 2020, is anticipated to make it to USD 101.28 billion in 2026, states Mordor Intelligence report.
The health care sector is undergoing massive digital transformation and as a part of this it there is immense adoption of various technologies and devices. KPMG report on medical devices reveals that the medical device industry is expected to reach US$800 billion by 2030, and the OMDIA report indicates that in 2019, total semiconductor sales in the medical market account for $5.6 billion, which is 11 percent of the overall global semiconductor market. A report from Mordor Intelligence reveals that the semiconductor in the healthcare market is expected to grow at a CAGR of over 10.2% during the forecast period (2020 – 2025).