Global Semiconductor Market to Reach $1659 Billion by 2029

2025-01-13 business

London, Monday, 13 January 2025.
The semiconductor market is expected to grow at a CAGR of 8.9%, driven by demand in automotive and consumer electronics sectors.

Market Growth Trajectory

The global semiconductor and electronic component market is poised for substantial expansion, projected to grow from $1,074.31 billion in 2024 to $1,178.79 billion in 2025 [1]. With a compound annual growth rate (CAGR) of 8.9%, the market is expected to reach $1,659.77 billion by 2029 [1]. This remarkable growth trajectory is underpinned by increasing demand across multiple sectors, particularly in automotive and consumer electronics applications [1].

Regional Market Dynamics

Asia-Pacific continues to dominate the global semiconductor landscape, maintaining its position as the largest market region in 2024, followed by North America [1]. The region’s leadership is reinforced by significant government initiatives and the presence of major industry players. In India, market leaders including Samsung, Intel, SK Hynix, and Qualcomm are driving growth through advanced technologies and 5G network rollouts [3].

Technological Advancements

The market is witnessing significant technological evolution, particularly in specialized segments. The RF power semiconductor sector is projected to grow at a CAGR of 8.52%, reaching $36.002 billion by 2029 from $23.922 billion in 2024 [2]. This growth is largely driven by the expansion of 5G networks and IoT applications, with Techjury data indicating that IoT devices are expected to reach 27 billion connected devices by 2025 [2].

Emerging Technologies and Future Outlook

A particularly promising area is the silicon photonics market, which is showing exceptional growth potential. The silicon photonics market for PIC die is projected to grow at an impressive CAGR of 45%, while the LNOI market is expected to reach nearly $1 billion by 2029 [5]. The semiconductor laser market is also expanding significantly, with projections indicating growth from $3.1 billion in 2023 to $5.3 billion by 2029 [6], highlighting the industry’s continued innovation and diversification.

Bronnen

semiconductor market global growth