The global microelectronics market was valued at US$ 503,742.10 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.00% from 2022 to 2030. Microelectronics components are used in various devices such as cell phones, televisions, personal computers, microwave ovens, calculators, fax machines, camcorders, stereo players, IoT devices, and others that play a vital role in the modern lifestyle of humans.
Global Microelectronics Market: Regional Insights
The global microelectronics market is geographically divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America among regions is expected to gain a major share in the global microelectronics market during the forecast period. Owing to the presence of leading market players such as Honeywell International Inc., Crestron Electronics, Inc., and others, North America held a dominant position in the global microelectronics market and is estimated to retain its dominance during the forecast period. Furthermore, Asia Pacific is also expected to witness substantial growth in the global microelectronics market during the forecast period
Figure 1: Microelectronics Market Share (%), By Region, 2022
Global Microelectronics Market Drivers:
Growing adoption of IoT among several industries to boost the market growth
The adoption of IoT is increasing among industries due to the emergence of applications and business models along with reduced device costs. Consequently, the number of connected devices such as connected machines, cars, wearables, meters, and consumer electronics is also increasing around the world. As per Ericsson, the volume of IoT devices having a cellular connection is likely to increase from 400 million in 2016 to 1.5 billion in 2022. This is owing to the rise in industrial focus on the deployment of the connected ecosystem and standardization of 3GPP cellular IoT technologies. Thus, due to the aforementioned factors, the demand for microelectronics is expected to increase in the coming future, which is expected to boost the growth of the global microelectronics market during the forecast period.
The increasing adoption of microelectronics devices
The increasing adoption of microelectronics devices such as resistors, transistors, capacitors, inductors, diodes, and others in various industries across the globe is one of the factors, which is expected to propel the growth of the global microelectronics market over the forecast period. Microelectronics devices are used in various sectors such as construction, medical, industrial, military and aerospace, transportation, consumer, and other sectors. For instance, in the construction industry microelectronics devices are used in various smart home applications including lighting control systems, security systems, HVAC (Heating, ventilation, and air conditioning) control systems, entertainment control systems, and other applications.
Global Microelectronics Market Opportunities:
The increasing demand for microelectronics in the healthcare industry is driving the growth of the global microelectronics market in the forecast period. The healthcare industry is witnessing a rapid evolution with the development of advanced medical devices, telemedicine, and personalized healthcare solutions. Moreover, microelectronics plays important role in the development of various healthcare devices such as wearable health monitor diagnostic equipment and telemedicine devices.
Microelectronics Market Report Coverage
|Base Year:||2022||Market Size in 2022:||US$ 503,742.1 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||8.00%||2030 Value Projection:||US$ 930,345.00 Mn|
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.
|Restraints & Challenges:||
Global Microelectronics Market Trends:
Increase in the adoption of artificial intelligence is a major trend in the market
The adoption of artificial intelligence (AI) and related novel technologies such as cognitive automation, computer vision, and machine learning is increasing across several industries globally for robotic process automation. This technological convergence is generating automation capabilities that are elevating businesses' value and competitive advantages significantly for customers. Thus, this trend is expected to fuel the growth of the global microelectronics market during the forecast period.
Growing adoption of 5G technology
The deployment of the 5G network is increasing and which is driving the demand for microelectronics. 5G technology requires advanced microelectronics for supporting higher data speeds, low latency, and massive connectivity. Moreover increasing adoption of 5G technology across industries such as telecommunication, automotive, healthcare and others is also driving the growth of the global microelectronics market.
Global Microelectronics Market Restraints:
Concerns regarding data security
Demand for microelectronics is increasing in various applications such as critical infrastructure, healthcare IOT devices, and others. In such applications, there is a risk of cyber-attacks and data breaches, annd such cyber-attacks are hampering the growth of the global microelectronics market.
The microelectronics industry is characterized by rapidly evolving technologies and increasing complexity of electronic devices. Moreover in microelectronics advancement in areas such as nanotechnology, 3D integration are required skilled expertise.
Global Microelectronics Market- Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted almost all the industries including automotive, medical & healthcare, consumer electronics, clothing & textile, food & beverage, automation, manufacturing, aerospace & defense, oil & gas, construction, semiconductor, agriculture, and others. Liquidity shortfall, cash crunch, and others are the factors that are restraining growth of the various sectors during COVID-19 pandemic.
Figure 2: Global Microelectronics Market Share (%), By Product, 2022
Global Microelectronics Market Segmentation:
The global microelectronics market report is segmented into algorithm, product, and vertical
On the basis of the algorithm global microelectronics market is segmented into behavioral and proactive.
On the basis of product, the global microelectronics market is segmented into lighting control, security and access control, entertainment control, HVAC control, and other controls. HVAC controls segment is expected to account for the largest share of the market. The increasing adoption of HVAC control technologies for building automation is expected to drive segment growth during the forecast period.
And on the basis of vertical global microelectronics market is segmented into aerospace and defense, medical, construction, automotive, and others.
Global Microelectronics Market: Key Developments
In April 2023 2022, Nexperia B.V. of Nijmegen, the Netherlands (a subsidiary of Wingtech Technology Co Ltd) launched a 650V silicon carbide (SiC) Schottky diode. Such a diode is designed for power applications that require ultra-high performance, low loss, and high efficiency.
In September 2022, NOVOSENSE Microelectronics IC design company launched 6 new industrial and automotive-qualified chip series, including isolated sampling, isolated driver, gate driver, non-isolated high-voltage half-bridge driver, silicon microphone conditioning chip, and gauge pressure sensor and such products are useful in industrial and automotive industry.
In Feburvary 2023, Fudan Microelectronics, China based IC chip manufacturer company is partnered with Semtech, IOT system provider company,. Through this partnership Fudan Microelectronics launched MCU+SX126x Reference Design product.
Global Microelectronics Market: Key Companies Insights
The global microelectronics market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies to expand their presence on a regional as well as global basis.
Some of the key players in the global 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.
*Definition: Microelectronics is used in various industries such as medical, automotive, construction, aerospace, and others for design optimization and miniaturization of electronics to increase capabilities of products without increasing its size.
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