Microelectronics (Global Market)

2024: Global Electronic Components Market Growth to $393.63 Billion

In 2024, the costs of the global market for all kinds of electronic components reached $393.63 billion. Sales of such products are growing rapidly, which is due to the development of technologies, continued digitalization in various fields and the rapid introduction of artificial intelligence. Industry trends are addressed in the Fortune Business Insights survey published in early March 2025.

The study takes into account active components (diodes, transistors, integrated circuits, etc.), passive elements (resistors, capacitors, inductors, etc.) and electromechanical components (switches, relays, etc.). One of the main drivers of the market in question is called the expansion of the infrastructure Internet of things (), IoT which is accompanied by an increase in demand for sensors, wireless communication modules, microcontrollers and other products. In addition, sales of telecommunications equipment are increasing amid the construction of mobile networks and the 5G introduction of new wireless standards, such as 7. Wi-Fi

An increase in sales of consumer electronics and mobile gadgets, including smartphones, smartwatches and fitness bracelets, also leads to an increase in market size. Electronic components are widely in demand in the automotive industry: modern robotic and intelligent vehicles are equipped with a large number of sensors, digital systems and electronic control units. With the introduction of AI, sales of server hardware are increasing, which includes powerful GPU-based accelerators, high-performance solid-state drives and other advanced components.

Another stimulating factor is technological advances that include miniaturization of electronic components and the use of improved production processes. There has been a shift towards lower power products. In general, the emerging market trends indicate a steady positive trend.

In terms of the use of electronic components, the authors of the study distinguish telecommunications, automotive, industrial engineering, consumer electronics, health care etc. In 2024, the largest share of revenue was provided by the automotive segment, which is explained by the introduction of advanced driver assistance systems and autopilot tools. At the same time telecommunication , the sector demonstrates the highest growth rates. From a geographical point of view, the Asia-Pacific region leads with costs of $148.74 billion: the dominance is due to the high concentration of large electronics manufacturers, as well as the growing demand for equipment in,, and China India. Japan Taiwan North America demonstrates significant growth due to the high level of development of the segment, IT aerospace industry, telecommunications and the automotive industry. Significant players in the global market are named:

• TDK;
• Kyocera AVX Components;
• Murata Manufacturing;
• Panasonic;
• Amphenol;
• Littelfuse;
• TE Connectivity;
• Vishay Intertechnology;
• Analog Devices;
• Samsung Electro-Mechanics.

In 2025, spending on electronic components worldwide is expected to rise to $428.22 billion. Fortune Business Insights analysts believe that in the future, the CAGR in the market under consideration will be 10.3%. As a result, by 2032, costs on a global scale could increase to $847.88 billion.^[1]

2022: Moody's Analytics: World's processor shortage could worsen due to Ukraine situation

As a result of what is happening in Ukraine, the already existing shortage of chips in the world may worsen, follows from a report by the analytical company Moody's Analytics on geopolitical risks for^[2]. There may be interruptions in the supply of raw materials necessary for the production of chips. This is due to the fact that Russia and Ukraine are its large suppliers.

Moody's Analytics analysts note that Ukraine supplies about 70% of the world's neon needed in the microelectronic industry. Neon, used for the production of chips, is obtained in large quantities at Russian metallurgical enterprises. It is processed at Ukrainian enterprises, and from there comes to microelectronics manufacturers.

In addition, Russia supplies about 40% of palladium, also needed in the microelectronic industry, and is one of the largest producers of aluminum and steel, which are used in a wide range of industries - from drinks cans to smartphones and cars.

One of the conclusions we come to is that the global shortage of chips will not go anywhere in the near future. This will increase the shortage of input materials in various industries - from the automotive industry to telecom. The auto industry may also face shortages of other elements, such as catalytic converters and parts made of aluminum and steel, which could cause delays in the supply of cars, the analytical report said.

Moody's Analytics Points Out Risk of Chip Outages

The global shortage of chips arose during the pandemic in 2020-2021. against the background of the transition of many to remote work and the acceleration of digitalization. Further aggravation of this problem can lead to a decline in the industry, which is already trying to overcome the "narrow necks" that arose against the backdrop of the coronavirus pandemic, according to Moody's Analytics.

And then, as suppliers of raw materials for the microelectronic industry have faced problems, increasing federal funding for semiconductor production will be less effective. That could force major investors like Intel to temporarily cut large investments, too.

The Moody's Analytics report does not mention that Russia is also a major supplier of sapphire substrates that are used in opto- and microelectronics. Interruptions in their supply can also exacerbate the lack of processors. Ministry of Industry and Trade Russia On March 6, he stated that against the background of sanctions, Russia allows stopping the export of artificial sapphires only as a last resort.

However, some representatives of the foreign semiconductor industry believe that the industry does not have a critical dependence on the supply of any specific suppliers.

The semiconductor industry has a wide range of suppliers of basic materials and gases, so we do not believe that there are immediate risks of supply disruptions related to Russia and Ukraine, "said John Neuffer, executive director and president of[3] Shorts Semiconductor Industry[4].

2019: Microprocessors promised a bleak future without a single lumen

The further development of the semiconductor industry can slow down sharply or even completely stall when trying to master the norms of the technological process following 5 nm, according to leading experts in the semiconductor industry^[5].

The scenario is not excluded, according to which the transition to the standards for the production of semiconductors with nodes of the order of 1 nm will take at least decades, however, there is a darker possibility that the development of technology will stumble already at 3 nm standards due to the lack of suitable materials for the manufacture of photoresists, reported the portal EE Times with reference to the results of the panel discussion of specialists in the framework of the annual conference on lithography problems SPIE Advanced Lithography 2019.

Initially, the session participants planned to note the fact of the previously predicted "death" of Moore's Law, according to which the number of transistors on a chip chip doubles every 24 months. However, following the meeting, its participants noted growing concern in the industry about uncertainty with the production technologies of the next generations of chips, tied, in turn, to a growing number of unresolved technological problems.

Main Article: Processors (Global Market)

2016: Frost & Sullivan Data

In 2016, the global microelectronics market amounted to $339 billion. Over the year, it increased by 1.1% or $4 billion. In 2017, the market is projected to grow by 6.5% to $361 billion. The leaders in the production of semiconductor components in the five-year perspective will remain the countries of Southeast Asia (China, Malaysia, Taiwan, Singapore, South Korea, etc.) and the United States. Russia's share in the structure of the global microelectronics market is still less than 1% ($2.3 billion at the end of 2016).

In the period 2010-2016 the growth rate of the global microelectronics market averaged 2.2% per year. Over six years, the market volume increased by $41 billion and in 2016 reached $339 billion (against $298 billion in 2010) (Chart 1). According to forecasts, in 2017 the market volume will increase to $361 billion, and to $369 billion in 2018. Growth rates will be 6.5 and 2.3%, respectively.

The main share of the microelectronic components market today belongs to the countries of the Asia-Pacific region (about 61%), followed by the states of the Americas (19%), Europe and Japan (10% each) (Chart 2). Over the past 10 years, the share of the APR countries in the structure of the global microelectronics market has increased by 14%, the Americas - by 1%. Market shares of European countries and Japan, on the contrary, decreased - by 6 and 9%, respectively.

In the next 5 years, China, Malaysia, Taiwan, Singapore, South Korea and the United States will retain their flagship positions in the industry, and the automotive and telecommunications industries, robotics, the healthcare industry, consumer electronics and the Internet of Things (IoT) will become the key drivers of the development of the global microelectronic industry (in terms of stimulating demand for the products of manufacturing enterprises ). The growing market trends include the proliferation of augmented (AR) and virtual reality ( VR) devices, more powerful technologies for working with large amounts of data (for example, VLC), the production of energy efficient technologies (including OLED), wearables (wearables) and the general trend towards miniaturization. Industrial Internet of Things (IIoT) and the so-called Internet of Medical Things (IoMT) will also have a great impact on the development and growth of the global microelectronics market (Fig. 3).

2014

Gartner Data

Unlike in 2013, growth is seen in all segments of the market, but memory chip sales are increasing the fastest, as in the previous year. In 2014, the global microelectronics market grew to $340.3 billion, up 7.9% from last year. At the same time, 72.4% of sales are accounted for by 25 leading companies, whose total revenues increased by 11.7% compared to last year.

Unlike in 2013, growth is seen in all segments of the market, but memory chip sales are increasing the fastest, as in the previous year. This segment grew by 16.6%, while the rest of the market - only 4.9%. DRAM memory chip sales rose 32% to $46.1 billion, surpassing the record level of $41.8 billion reached back in 1995.

For the twenty-third consecutive time, Intel ranked first in terms of sales among chipmakers. Thanks to the restoration of PC production, she managed to return to sales growth after two years of decline. Intel owns 15.4% of the market, followed by Samsung Electronics (Samsung Electronics Rus) (10.2%) and Qualcomm (5.7%).

Mergers and acquisitions have increased significantly among leading chipmakers. After the acquisition of LSI, Avago Technologies became one of the 25 largest manufacturers for the first time. MStar Semiconductor and MediaTek completed the lengthy merger process, while ON Semiconductor bought Aptina Imaging.

Frost & Sullivan: Countries protect their microelectronics

In 2014, Frost & Sullivan analysts compared the world's best microelectronic industry support practices in six countries worldwide (USA, South Korea, Malaysia, Israel, Germany and China). From the data of this analysis, it follows that in all these countries there are various protectionist measures in relation to the production and development of electronics, including import quotas and tariff and non-tariff restrictions.

2012: Sales decline to $298 billion (-3%)

Global chip sales in 2012 amounted to $298 billion, which is 3% lower than in 2011, but Gartner analysts believe that growth will resume in 2013.

According to December 2012 forecasts, in 2013 the market volume may reach $311 billion. Earlier, Gartner predicted growth to $330 billion, but the overall situation in the economy and the fact of large stocks in warehouses forced analysts to lower the forecast.

Even in the steadily growing chip market smartphones , a slowdown in growth is noted for, although it remains the leading growth driver of the global microelectronics market.

Intel, the world's largest chipmaker, saw sales fall 2.7% in 2012 to $49.3 billion, Gartner said. Analysts see the reasons for this in low demand for PCs, both due to the weakness of the economy and due to the reorientation of consumers to tablets and smartphones.

Samsung Electronics (Samsung Electronics Rus), the world's second-largest manufacturer, saw sales fall 8.7%.

But Qualcomm managed to increase them by 29.6% compared to 2011 and move from sixth to third place in the world^[6].

See also

• Electronics industry (Russian market)
• Radio Relay Communications (Global Market)
• Spin orbitronic
• Article:Internet of Things (IoT)
• Article:Internet of Things, IoT, M2M (Global Market)
• Article:Internet of Things, IoT, M2M (Russian market)
• Internet of Things: you can't stay in time
• IIoT - Industrial Internet of Things
• Industrial Revolution (Industry 4.0)
• PaaS - Platform As A Service
• RFID
• APCS
• NB-IoT Low-Power and Wide-Area Standard, LPWA

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