Semiconductor Devices Market Size, Share, Trends, Industry Analysis, and Forecast (2025 – 2031)

Semiconductor Devices Market Size

The global semiconductor devicesmarket size was valued at $707.19 billion in 2025 and is projected to reach $1,219.06 billion by 2031, growing at a CAGR of 9.5% during the forecast period.

Semiconductor Devices Market Overview

Semiconductor devices are essential components in modern electronics, serving as the building blocks for a wide range of applications including smartphones, computers, and automotive systems. They function by controlling electrical currents and are pivotal in enabling technologies such as artificial intelligence, the Internet of Things (IoT), and 5G communications.

Companies can significantly benefit from the semiconductor sector due to its rapid growth driven by increasing demand for electronic devices and government initiatives aimed at boosting domestic manufacturing. For instance, India's strategic push to establish semiconductor fabrication units is designed to reduce reliance on imports and create a self-sufficient ecosystem. This initiative not only opens avenues for investment but also promises substantial job creation and economic diversification. As major corporations like Tata and Vedanta commit to significant investments in semiconductor facilities, they position themselves to capitalize on the burgeoning market, which is projected to expand dramatically in the coming years. By engaging in this sector, companies can enhance their competitive edge and contribute to technological advancements that are reshaping industries globally.

Semiconductor Devices Market Dynamics

The semiconductor devicesmarket is expected to witness significant growth in the future due to the increasing adoption of connected devices and IoT applications, government initiatives aimed at boosting semiconductor manufacturing, and rising demand for semiconductors in electric vehicle (EV) production. However, the complexity in semiconductor design and manufacturing processes, functional defects and yield issues in semiconductor chips, and shortage of skilled workforce in semiconductor technology are restraining the growth of the market.

Furthermore, expansion of 5G technologies creates demand for high-performance devices, growth potential in AI applications requiring specialized semiconductors, and increasing investment in smart home devices and wearable are the key trends propelling the semiconductor devicesmarket.

Increasing Adoption of Connected Devices and IoT Applicationsis Driving the Semiconductor Devices Market

The increasing adoption of connected devices and IoT applications is significantly impacting the semiconductor devices market by driving demand for advanced semiconductor solutions.

• For example, on August 4, 2023, STMicroelectronics launched the STM32WBA52 microcontroller, which integrates Bluetooth LE 5.3 connectivity and is designed for ultra-low-power IoT applications, showcasing how companies are innovating to meet the needs of IoT devices.
• Additionally, the global trend towards smart homes and appliances is creating a surge in demand for IoT sensors, with companies like Geomatec developing high-performance thin-film technologies to enhance semiconductor manufacturing for these applications.

Government initiatives also play a crucial role; for instance, various countries are investing in semiconductor manufacturing capabilities to support their growing IoT ecosystems.

• In 2021, the U.S. government announced a $52 billion investment plan to boost domestic semiconductor production, recognizing the strategic importance of semiconductors in powering connected devices.

This expanding market is prompting semiconductor companies to innovate continuously and develop integrated solutions that cater to various sectors, including healthcare and automotive, thereby unlocking new business opportunities.

By EndUser, the Communication Segment is projected to be the Largest Segment in the Semiconductor Devices Market

Communication is the largest segment in the semiconductor devicesmarket, driven by rising demand for advanced connectivity solutions and government initiatives aimed at enhancing domestic production capabilities. The global push for 5G technology is a primary catalyst;

• For instance, on March 22, 2024, Qualcomm announced the launch of its Snapdragon X75 modem, designed to support advanced 5G applications and enhance connectivity for IoT devices.

This aligns with broader trends as countries invest in telecommunications infrastructure to support next-generation networks.

• In North America, the U.S. government has committed substantial resources to semiconductor manufacturing through the CHIPS Act, enacted in August 2022, which allocates $52 billion to boost domestic chip production.

Additionally, India is making strides in this sector with its Semiconductor Mission and Production-Linked Incentive (PLI) schemes, which collectively aim to establish a robust semiconductor ecosystem.

As of October 2023, the Indian government received numerous applications under its PLI scheme, indicating strong interest from global players like TSMC and AMD to set up manufacturing facilities in the region. With projections estimating that India's semiconductor market could reach $80.3 billion by 2028, driven by communication technologies and IoT applications, the landscape is set for rapid expansion fueled by both governmental support and private sector innovation.

By Geography, North America Holds the Largest Share in the Market Revenue

North American region holds the largest share of the semiconductor devicesmarket, driven by technological advancements, government initiatives, and increasing reliance on connected devices.

• In August 2022, the Biden-Harris Administration has prioritized domestic semiconductor manufacturing, launched the CHIPS Act, which allocates $52 billion to bolster U.S. chip production and reduce dependency on foreign supply chains.
• On January 21, 2022, this initiative has spurred significant investments, such as Intel's announcement to build a $20 billion factory in Ohio, expected to create thousands of jobs and enhance local manufacturing capabilities.
• Similarly, on March 8, 2024, the Commerce Department awarded $162 million to Microchip Technology to expand its production of microcontrollers and semiconductors critical for automotive and defense applications.

Furthermore, companies like Micron Technology are actively investing in new facilities; for instance, they are close to finalizing a $1 billion investment proposal to establish an advanced technology manufacturing plant in the U.S. These efforts are complemented by state-level incentives, such as New York's $5.5 billion support for Micron's new fabs near Syracuse. The growing integration of IoT applications across various sectors further fuels this demand, with companies like Qualcomm launching cutting-edge products that enhance connectivity and performance in smart devices. Overall, the combination of government support and corporate investments positions North America as a key player in the global semiconductor landscape.

Key Target Audience:

• Manufacturers
• Government Bodies
• Research Institutions
• Investors
• End-Users

List of the Key Players Profiled in the Report Includes:

• Intel Corporation
• Nvidia Corporation
• Kyocera Corporation
• Qualcomm Incorporated
• STMicroelectronics NV
• Micron Technology Inc.
• Advanced Micro Devices Inc.
• NXP Semiconductors NV
• Toshiba Corporation
• Texas Instruments Inc
• Analog Devices Inc.
• SK Hynix Inc.

Recent Developments:

• In June 2025, Nvidia launched the GeForce RTX 5050 GPU for desktop and laptop platforms, offering ray tracing, DLSS 4, and 8 GB of memory at accessible price points. The desktop model starts at $249, while the GDDR7-equipped laptop version starts at $999, combining performance with energy efficiency.
• In September 2024, Intel unveiled next-generation AI solutions with the launch of Xeon 6 and Gaudi 3, aimed at transforming enterprise computing.
• In September 2024, Qualcomm introduced the Snapdragon X75 modem, which supports advanced 5G capabilities and enhances IoT device connectivity.
• In August 2024, Kyocera launched a new series of high-performance capacitors designed for IoT applications, improving energy efficiency in connected devices.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Device Type:

• Discrete Semiconductors
• Optoelectronics
• Sensors
• Integrated Circuits

Market by, EndUser:

• Automotive
• Communication (Wired and Wireless)
• Consumer
• Industrial
• Computing/Data Storage
• Government (Aerospace and Defense)

Market by, Geography:

The semiconductor devicesmarket report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.