by Microelectronics refers to electronics involving the design, analysis, fabrication, packaging and testing of miniaturized electronic components. Microelectronic components include sensors, integrated circuits, logic gates, transistors, and microprocessor chips. These components are used in various applications such as consumer electronics, industrial, medical devices, automotive and others. The automotive industry has emerged as one of the major adopters of microelectronic components. Cars are increasingly integrated with electronics in the form of sensors, processors, cameras, navigation systems and different types of control modules.
The global Microelectronics Market is estimated to be valued at US$ 544041.47 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Microelectronics are extensively used in automobiles for applications such as infotainment systems, safety, navigation and driver assistance. With advancement of technologies such as electric vehicles, autonomous driving and connected cars, dependence of automotive industry on microelectronic components is further increasing. The other driver is rapid growth of consumer electronics industry which utilizes microelectronics in varied applications such as smartphones, TVs, tablets and home appliances. Asia Pacific region holds majority share in global consumer electronics production. This widespread use of microelectronics in consumer electronics is expected to fuelee market growth over the forecast period.
SWOT Analysis
Strength: The microelectronics market has been witnessing significant technological advancements in recent years. For instance, next generation processors are being designed to enhance computing power and efficiency. In addition, miniaturization of electronic components has enabled the development of smaller and more powerful devices. Furthermore, increasing digitization across industries is augmenting demand.
Weakness: High infrastructure and R&D costs associated with manufacturing microelectronic components poses challenges for new players to enter the market. Additionally, the design and production of microchips requires specialized skills and expertise which limits the number of players in the market.
Opportunity: Growing applications of IoT, artificial intelligence, and 5G networks present lucrative opportunities for market growth. Adoption of wearable devices, VR/AR technologies also present an opportunity for microchips manufacturers. Furthermore, rising demand for connectivity in automotive and consumer electronics also augurs well.
Threats: Intense competition from existing and emerging players poses threat. In addition, design complexities associated with manufacturing at nanoscale level poses technological challenges. Geopolitical uncertainties related to trade policies can also negatively impact sourcing and supply chain operations of players.
Key Takeaways
The Global Microelectronics Market Size is expected to witness high growth over the forecast period supported by rising demand for connected devices across industries. The market size is projected to reach US$ 544041.47 Mn by 2023.
North America dominates currently due to presence of major players and high adoption across telecommunications, automotive, and consumer electronics industries in the region. Asia Pacific is expected to witness fastest growth supported by manufacturing units of international brands, rising electronics exports from China and Taiwan, and presence of domestic manufacturers such as Samsung in South Korea and Taiwan Semiconductor Manufacturing Company.
Key players operating in the 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. These players are focusing on new product development and expanding presence in high growth markets through mergers and acquisitions to gain competitive advantage.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
