According to the latest research report by Transparency Market Research Inc., the global electronics and semiconductor materials market, valued at US$ 58.0 Bn in 2023, is expected to grow at a CAGR of 6.1% during the forecast period (2024–2034) and reach US$ 119.8 Bn by 2034. The surge in market growth is attributed to significant investments in research and development (R&D) and the increasing adoption of flexible electronics across various industry verticals.
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Electronics and semiconductor materials have gained substantial momentum in recent years, bolstered by developments in 5G technology, the growing penetration of consumer electronics and electric vehicles, and the rapid proliferation of the Internet of Things (IoT). With a projected 41.1 billion IoT devices by 2030, demand for semiconductor materials is experiencing an unprecedented uptick.
East Asia has emerged as a leading hub for sourcing semiconductor fabrication materials, while North American companies are ramping up production capabilities in response to initiatives such as the U.S. CHIPS and Science Act. This act has provided US$ 52.7 Bn in investments to bolster domestic semiconductor manufacturing and innovation. Additionally, breakthroughs in materials such as silicon carbide (SiC) for electric vehicles and gallium nitride (GaN) for energy-efficient applications are fueling market expansion.
Market Overview
Electronics and semiconductor materials, ranging from basic to advanced products, form the backbone of the modern electronics industry. These materials are critical for fabricating integrated circuits (ICs), transistors, diodes, and other semiconductor devices. While silicon remains the most widely used material, alternatives like gallium arsenide (GaAs), germanium, and silicon carbide (SiC) are also employed in niche applications to deliver faster, more efficient electronic products.
Key Growth Drivers
Extensive Investment in R&D Activities
The market is witnessing rapid expansion driven by a confluence of scientific innovation, supportive government policies, and escalating consumer demand for compact and energy-efficient devices. The expansion of 5G technology and the rising need for power modules in IoT applications underscore the importance of R&D investments. Manufacturers are increasingly focusing on next-generation memory technologies such as phase-change memory (PCM) and magnetic random-access memory (MRAM) to meet future demands.
Rising Use of Flexible Electronics
Government initiatives and technological advancements in flexible materials and manufacturing processes are paving the way for the mass production of flexible electronics. This trend is particularly evident in applications such as wearable devices, sensors, and electronic skin, which require high-performance, low-power flexible transistors—most notably, 2D semiconductors like molybdenum disulfide (MoS₂). Key markets in Japan, South Korea, and the United States are spearheading innovations in this space, promising significant growth in both consumer and industrial sectors.
Materials and Components Segmentation
Silicon Segment to Lead Materials Market
Silicon holds a dominant share in the electronics and semiconductor materials market, accounting for 53.1% of the market in 2023. Its critical role in the fabrication of semiconductor devices, including microchips and integrated circuits, has driven major investments by industry leaders such as Shin-Etsu and Siltronic AG.
Logic Chips to Dominate Components Market
Within the components segment, logic chips commanded a 30.2% share in 2023. These chips are essential for powering advanced applications in AI, 5G, and IoT. Major industry players, including Intel and TSMC, are significantly expanding manufacturing capacities to meet the surging digitalization demands.
Regional Outlook
Leading Region – East Asia
East Asia dominated the global electronics and semiconductor materials market in 2023, generating approximately US$ 43.7 Bn in revenue. The region’s sophisticated manufacturing infrastructure, robust government support, and strong industry collaborations have cemented its status as a critical hub for semiconductor production. Countries such as Taiwan, South Korea, and China collectively contribute over 80% of global semiconductor foundry revenues.
North America’s Strategic Initiatives
North America, with its strong public and private technology ecosystems, remains a key market. Substantial investments driven by policies like the U.S. CHIPS Act have reinforced the region’s position in semiconductor R&D and production, with companies like Intel, NVIDIA, and Qualcomm at the forefront of innovation.
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Analysis of Key Players
The market is moderately consolidated, with major players employing strategies such as portfolio expansion and mergers & acquisitions to strengthen their market presence. Notable companies include:
- Applied Materials, Inc.
- Air Products and Chemicals, Inc.
- Shin-Etsu Chemical Co., Ltd.
- Sumitomo Chemical Co., Ltd.
- BASF SE
- CABOT CORPORATION
- Dow Inc.
- Entegris Inc.
- Heraeus Conamic
- Honeywell International Inc.
- JSR Corporation
- Linde plc
- Merck KGaA (EMD Group)
- Nippon Kayaku Group
- Resonac Holdings Corporation
- Siltronic AG
- SK Inc.
- Sumco Corporation
- Taiwan Semiconductor Manufacturing Company Limited
- Wacker Chemie AG
Key Market Developments
- October 2024: BASF introduced Ultramid Advanced N3U41 G6, a polyphthalamide designed for housing IGBT semiconductors in power electronics applications.
- September 2023: Shin-Etsu Chemical Co., Ltd. advanced its QST substrate technology for GaN power devices, enhancing the quality and reliability of GaN epitaxial layers.
- April 2022: Air Products San Fu Co. Ltd announced a US$ 900 Mn investment in ultra-high purity industrial gas facilities to support advanced semiconductor fabs in Kaohsiung.
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Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.
Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.
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