Global Semiconductor Packaging Market Forecast Report, 2019 to 2024


Reading time ( words)

The global semiconductor packaging market was valued at $26.12 billion in 2018 and is expected to be worth $41.16 billion by 2024, recording a CAGR of 7.96% over the forecast period (2019-2024).

Owing to the growing demand across various end-user verticals of the packaging industry, the industry has witnessed a continuous transformation in terms of characteristics, integration, and energy efficiency of the product. Since packaging is in the early stage in the electronics value chain, the growth of the market studied is directly impacted by the growth of the semiconductor market.

  • The advent of IoT and artificial intelligence (AI) and the proliferation of sophisticated electronics are factors driving the high-end application segment across the consumer electronics and automotive industries that have increased the rate of adoption of the latest semiconductor packaging technologies, to meet the growing demand.
  • Semiconductor packaging technology has evolved to minimize the costs involved and enhance the overall efficacy of ICs. Vendors in the market are under constant pressure to deliver innovative solutions in terms of the size of the packaging, performance, and the time-to-market aspect.
  • Also, the emergence of 2.5D and 3D packaging mechanism, as of mid-2010, has made semiconductor manufacturers extend their flip-chip and wafer-level capabilities, owing to their enhanced functionality.

Key Market Trends

High Adoption Rate in Consumer Electronics Segment to Augment Market Growth

  • The electronics market constantly demands higher power dissipation, faster speeds, and higher pin counts, along with smaller footprints and lower profiles. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices, like tablets, smartphones, and the emerging IoT devices.
  • Each new iteration of consumer electronics products is smarter, lighter, and more energy efficient than its predecessors. This advantage creates huge expectations among customers for the next iteration, which is a significant selling point for the producers of consumer electronics.
  • In addition to this, smartphones are one of the most significant contributors to semiconductor consumption in the consumer electronics segment. In recent years, the United States has witnessed consistent growth in smartphone sales. With this trend likely to continue, it is poised to drive the semiconductor demand, in turn, augmenting the packaging market growth.

North America Expected to Hold a Significant Share

  • Countries in the region, such as the United States lead the world in manufacturing, design, and research in the semiconductor industry. The United States is also the frontrunner in semiconductor packaging innovation, boasting of 80 wafer fabrication plants spread across 19 states. Apart from this, investments in the country by major players are set to fuel the semiconductor packaging market.
  • For instance, Intel Corporation in 2017 had planned to invest more than $7 billion to complete Fab 42, a semiconductor factory, which is expected to be ready in 3-4 years.
  • Apart from this, the United States is home to some of the major automotive players in the world, which are investing in the electric car segment. This is set to augment the demand for semiconductors in the automotive industry significantly. In turn, it is driving the semiconductor packaging market.
  • For instance, Toyota in 2018 announced CAD 1.4 billion in two factories in central Canada where it plans to build its largest hybrid hub in North America. The government is expected to support the investment with CAD 110 million in Cambridge and Woodstock.

Share

Print


Suggested Items

Today’s MilAero Options, Part 1: 'Pride Goeth Before...'

04/12/2016 | Marc Carter
Historians, with their 20/20 hindsight, often write about the inevitable decline and fall of kingdoms, empires, religions, organizations, governments, and all the other permanent structures we humans build.

Wearable Tech Back to a Healthy Development Pace

02/11/2015 | Reed Exhibitions
Wearable tech was a major sensation in 2014. The wearable tech industry generated extensive interest among media, investors, start-ups, wearable tech enthusiasts, technology leaders and trade fairs. Many events were held around wearable products and industry last year. The trend for early 2015 has seen the industry fall back into a healthy developmental pace. Investors are keen to see a return on their capital injections and former start-ups are now reaching maturity.



Copyright © 2019 I-Connect007. All rights reserved.