Microelectronics Market Is Estimated To Witness High Growth Owing To Increasing Adoption Of Iot Devices
Microelectronics Market
The Microelectronics Market is estimated to be valued at Us$ 503,742.10 Mn in 2022 and is expected to exhibit a CAGR Of 8.00% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Microelectronics is the study and manufacture of very small electronic components such as integrated circuits and microchips. Microchips are at the heart of IoT devices and are responsible for sensing, processing and communicating data. They contain semiconductors, resistors, capacitors and other components on a tiny silicon chip which provide computing abilities to various IoT devices.
Market key trends:
One of the key driving factors for the growth of IoT microelectronics market is the increasing adoption of IoT devices across various industries. IoT is enabling connectivity between various electronic devices through internet for collecting and sharing data. With more devices being connected, the demand for microchips, sensors and other microelectronic components is increasing exponentially. Moreover, advancement in microelectronics technology is allowing manufacturers to develop more compact and energy efficient microchips with advanced features. This is further supporting development of smaller IoT devices and catalyzing adoption across industrial as well as consumer applications.
Porter's Analysis
Threat of new entrants: New players entering microelectronics market face high threat as it requires substantial R&D investments and established suppliers and distribution networks.
Bargaining power of buyers: Individual buyers have low bargaining power compared to large corporations due to smaller purchase volumes but collectively buyers bargaining power is high.
Bargaining power of suppliers: Major suppliers have significant bargaining power due to their differentiated technologies and expertise required.
Threat of new substitutes: Threat of substitutes is moderate as advancement in nanotechnology may lead to new substitute products.
Competitive rivalry: Competition is intense among established players to gain market share.
SWOT Analysis
Strength: Microelectronics finds applications across industries thus ensuring continuous demand. Technology leadership allows established players to charge premium prices.
Weakness: Significant investments required to develop cutting-edge technologies. Dependence on few suppliers increases procurement costs.
Opportunity: Growth of IoT and 5G networks to witness increased demand for microchips. Emerging markets in Asia to provide new growth avenues.
Threats: Trade tensions and geopolitical issues pose risks to global supply chains. Economic slowdowns can impact discretionary spending on electronic products.
Key Takeaways
The global microelectronics market is expected to witness high growth, exhibiting CAGR of 8.00% over the forecast period, due to increasing proliferation of IoT and connected devices. The market size for microelectronics stood at US$ 503,742.10 million in 2022.
Regional analysis: Asia Pacific dominates the global microelectronics market and is expected to maintain its lead over the forecast period. Presence of leading manufacturing nations such as China, South Korea, Taiwan and emergence of domestic brands drives the APAC microelectronics market. North America is another major market owing to high expenditure on innovation by US companies.
Key players operating in the microelectronics market are Honeywell International Inc., United Technologies Corporation, Crestron Electronics, Inc., Cisco Systems, Inc., Ingersoll-Rand PLC, Schneider Electric SE., Johnson Controls Inc., Acuity Brands, Inc., ADT Corporation, Control4 Corporation, and Others. They are focused on developing advanced
technologies through collaborative R&D to gain competitive advantage.
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