Discrete Semiconductor Market is estimated to be valued at USD 43.85 Bn in 2024, growing at a CAGR of 9.4% over the forecast period (2024-2031). Increased adoption of discrete semiconductors in consumer electronics such as smartphones, laptops, tablets, and smart gadgets is expected to drive the market growth. Furthermore, the growing demand for discrete semiconductors in the automobile, electronics, safety, and infotainment systems is projected to fuel market expansion.
Market Dynamics:
Discrete semiconductors are increasingly being used in advanced driver-assistance systems, telematics control units, navigation systems, and other automobile electronics. With the growing emphasis on vehicle connectivity, safety, and infotainment, demand from the automotive industry is expected to surge.
Strong demand for portable consumer devices and smartphones has increased the uptake of discrete semiconductors. Technological advancements in wireless communication standards and emphasis on enhanced user experience are projected to support the discrete semiconductor consumption.
Market Drivers
Growing Demand for Smart Homes and IoT Devices is Driving the Discrete Semiconductor Market Growth
Discrete semiconductors play a vital role in powering various smart home appliances like smart TVs, washing machines, refrigerators, security systems, and others. They are also a core component of IoT devices used in various industries for applications like factory automation, smart infrastructure management, and remote asset monitoring. As consumers increasingly embrace smart home technologies and businesses invest more in IoT solutions, the need for discrete semiconductors that power these systems will continue to rise significantly. This growing demand from the smart home and IoT space is a major driver for growth in the discrete semiconductor market.
Advancements in Consumer Electronics are Boosting the Need for Higher Performance Discrete Components
Rapid innovations in consumer electronics like smartphones, laptops, wearables, and gaming consoles are driving the need for more powerful and efficient discrete semiconductors. Devices are becoming thinner, packed with more features and require longer battery life which can only be achieved by integrating discrete components with faster processing speeds, higher power capacity, and lower power consumption compared to earlier generations. Semiconductor companies are continuously developing new discrete components like power management ICs, sensors, and RF front-end modules to meet the rigorous performance requirements of next-gen consumer devices. This push for cutting-edge discrete components is propelling the consumer electronics industry and fueling the market growth.
Market Restraints
Volatility in Commodity Prices Pose Threat to Component Cost and Supply
Discrete semiconductor manufacturing relies heavily on various commodity materials like silicon wafers, aluminum, and palladium among others. These raw materials experience volatile price fluctuations due to geopolitical factors, supply constraints, and global economic conditions. When commodity prices spike, it negatively impacts manufacturer margins as component costs increase. Supply chain disruptions can also cause production delays. This instability in input prices and availability poses a formidable restraint for companies in the discrete semiconductor space struggling to manage costs and meet demand. Unless effectively mitigated, commodity volatility threatens to slow market expansion.
Intense Competition from Integrated Circuit Manufacturers
Well-established integrated circuit manufacturers actively promote their system-on-chip solutions as an alternative to discrete component designs. Integrated solutions promise form factor reductions, lowered power usage and design simplicity. While discrete chips offer more customization, integrated chips appeal to OEMs seeking to minimize component count and optimize board space. Fabless discrete chip companies face challenges competing against deep-pocketed integrated giants. In addition, foundry customers now expect node migration on similar timelines as integrated competitors. This places downward pressure on discrete chip pricing and gross margins, constraining revenue growth potential if not properly addressed.
Market Opportunities:
Automotive Electrification Trend Offers Lucrative Opportunity
The automotive industry's shift towards electric and hybrid vehicles provides a massive growth vehicle for discrete semiconductor vendors. Electric powertrains, advanced driver-assist systems, connected car technologies, and auto infotainment systems heavily employ discrete components ranging from MOSFETs and IGBTs to MCUs, sensors and power ICs. Discrete semiconductors optimized for automotive applications offer higher reliability under stringent operational conditions. As electric vehicles become mainstream, the demand for advanced discrete chips from top automakers will surge tremendously over the coming decade. The electrification boom opens a multi-billion dollar revenue pipeline.
Growth in Renewable Energy Infrastructure Favors Discrete Components
Governments and businesses are undertaking ambitious renewable energy initiatives involving solar farms, wind turbines, and storage systems. Discrete chips play a vital role in monitoring plant operations, maximizing efficiencies and ensuring safe grid integration of these distributed energy resources. MOSFETs, IGBTs, protection ICs, gate driver ICs, sensors and other discrete components are indispensable to manage power flow across solar panels and wind turbines smoothly. They are also key to battery management and bidirectional converter systems in grid-scale batteries. The renewable sector's massive planned capacity additions worldwide through 2030 and beyond set the stage for exponential discrete semiconductor consumption in energy applications.
*Link: https://www.coherentmarketinsights.com/market-insight/discrete-semiconductor-market-5216
Key Developments:
- Infineon Technologies introduced the CoolMOS PFD7 high-voltage MOSFET family in October 2022, setting a new standard in 950 V super junction (SJ) technology to meet market demands for improved form factors and energy efficiency
- In January 2022, Vishay Intertechnology Inc. unveiled two new n-channel TrenchFET MOSFETs, the 60 V SiJH600E and 80 V SiJH800E, enhancing power density, efficiency, and board-level reliability in telecom and industrial applications
- Infineon Technologies AG introduced ‘TRENCHSTOP IGBT7 technology’ in September 2020, tailored for industrial motor drives, photovoltaic, power factor correction, and uninterruptible power supply applications
- STMicroelectronics launched 26 new Schottky diodes in low-profile SBM and SMA flat packages in July 2020, boasting a current rating between 1-5 A and voltage rating of 25-200 V, delivering superior energy efficiency for consumer and industrial applications
Key Market Players:
Key companies covered as a part of this study include ABB , Diodes Incorporated , GeneSiC Semiconductor Inc. , Infineon Technologies AG , Nexperia , NXP Semiconductors , Renesas Electronics Corporation , ROHM CO., LTD. , Semiconductor Components Industries, LLC , StarPower Semiconductor Ltd. , STMicroelectronics , Taiwan Semiconductor , Texas Instruments Incorporated , TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION , Vishay Intertechnology, Inc. , and WeEn Semiconductors.