Connectivity and Advanced Technologies to Boost Growth Prospects for Global Semiconductor Devices: Report

Frost & Sullivan's recent analysis of the global semiconductor devices market finds that technology convergence of connectivity and advanced technologies such as artificial intelligence (AI) and machine learning (ML) is accelerating growth across all verticals.

The increased deployment of 5G, rising adoption of 5G smartphones, increasing electronics content in automotive, migration to electric vehicles (EVs) and automated vehicles (AVs), factory automation, and the proliferation of internet of things (IoT) devices in smart homes are trends that will drive future market growth.

As a result, the market will likely reach $620.07 billion by the end of 2022, up from $555.9 billion in 2021. 

"Although demand is expected across all verticals, growth is especially strong in the automotive sector. This is because the sector has become increasingly dependent on electronics (especially with electric vehicles and autonomous vehicles) for core functioning and performance improvements," said Prabhu Karunakaran, Industry Principal, Industrial at Frost & Sullivan. "As a result, semiconductors' content and value will increase rapidly."

"Semiconductors are expected to play a key role in data center growth as complex data analytics for various markets such as finance and healthcare increasingly move to the cloud" added Karunakaran.

As a result, data center growth will create demand for several clusters of semiconductor devices, including power management and optical transceivers and scale innovations in memory and flash devices to aid accelerated storage."