Global semiconductor packaging market was valued at USD 26.12 billion(Bn) in 2018 and is expected to be worth USD 41.16 billion by 2024, recording a CAGR of 7.97% over the forecast period (2019-2024).
Increased 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.
- The advent of IOT, artificial intelligence (AI) and proliferation of sophisticated electronics are leading to high-end application segment across consumer electronics, automotive industries and others. These increasing demands have increased the rate of adoption of the latest semiconductor packaging technologies to meet the growing demands.
Vendors are pressurized to deliver innovative solutions in terms of size of packaging, performance and time-to-market aspect in order to minimize the costs involved and enhance the overall efficacy of ICs.
- Emergence of 2.5D and 3D packaging mechanism as of mid-2010 has enabled 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
- Electronic market demands higher power dissipation, faster speeds, and higher pin counts along with smaller footprints and lower profiles.
- The miniaturization and integration of semiconductors gave rise to smaller, lighter and portable devices like tablets, smartphones and emerging IoT devices.
- Each new iteration of consumer electronic products is smarter, lighter, and more energy efficient than its predecessors which is a significant selling point for the manufacturers.
- Recently United States witnessed consistent growth in smartphone sales which drives semiconductor demand in turn, augmenting the packaging market growth.
North America Expected to Hold a Significant Share
- Countries such as the United States lead the world in manufacturing, design and research in semiconductor industry and are also the frontrunner in semiconductor packaging innovation boasting of 80 wafer fabrication plants spread across 19 states.
For instance, Intel Corporation in 2017 had planned to invest more than USD 7 billion to complete Fab 42, a semiconductor factory which is expected to be ready in 3-4 years.
- Some major automotive players of United States are also investing in the electric car segment which will augment the demand for semiconductors significantly
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.
The manufacturers are focusing on following a different path, shifting their focus away from performance and price to give tough competition to their competitors.
To Read the Full Report: Semiconductor Packaging Market – Growth, Trends, and Forecast (2019 – 2024).