The global semiconductor market is projected to grow from USD 573.44 billion in 2022 (it reached USD 527.88 billion in 2021) to USD 1,380.79 billion by 2029 during the forecast period 2022-2029, implying a growth of 12 .2% at the level of CAGR (Compound Annual Growth Rate).
The growth of the entire market will be driven mainly by the growing global interest in consumer electronics devices. In addition, artificial intelligence ("AI"), Internet of Things ("IoT") and machine learning ("ML") technologies offer long-term opportunities for the development of advanced semiconductors, as they depend on processing large amounts of data in a very short time. The growing demand for more advanced chips in industrial applications also increases the potential of this market in the future.
Rising levels of household disposable income, increasing population and urbanization are creating huge demand for consumer electronics devices. Chips are present in virtually all electronic devices, including smartphones, washing machines, televisions and refrigerators. Leading consumer electronics brands are investing heavily in launching new devices to meet the growing consumer demand for advanced devices and thus drive market growth. Interest in working from home is growing significantly in developed and developing economies, further increasing the demand for smart devices.
Smart home systems will be one of the important growth factors in the semiconductor market in the coming years, as artificial intelligence permeates homes, televisions, set-top boxes and other home appliances. This sector will grow faster than the personal computer sector and the smartphone sector in the next five years. According to IDC, the sector will reach a value of 325 billion USD by 2027, which is 17% more than in 2022 when it reached 277 billion USD. Smartphone sales are expected to grow by 2%, and the PC segment is expected to decline by 6% over the same period.
The cloud segment has a significant share of the semiconductor market due to the high need for online data processing, which is accelerating the demand for memory and storage devices. Consumer electronics such as gaming consoles, the fast-growing wearables sector, etc., play an important role in this market and support significant and sustained growth of the entire sector.
It is estimated that the automotive segment will grow only slightly. However, its market potential is increasing with advances in autonomous driving and related new opportunities for the sale of add-on software. Ford CEO predicts 1000% growth in automotive software services.
In the industrial application segment, demand for chips is expected to grow steadily, while in the government application segment, demand is expected to stagnate due to limited government investment in communications technology.
Every intelligent investor has included in his investment portfolio the so-called future stars that do not bring immediate profit, but have an extraordinary perspective for the future. The Chip AI portfolio represents a unique investment opportunity, so do not hesitate to contact us and open your investment account at Omnium Capital o.c.p., a.s.
