Connectivity, AI & ML driving semi market

Frost & Sullivan says that growing use of connectivity and advanced technologies like artificial intelligence (AI) and machine learning (ML) are pushing growth for global semiconductor devices across all verticals.

Additionally, the increased deployment of 5G, increased adoption of 5G smartphones, higher use of electronic componentry in automotive, transition to electric vehicles and automated vehicles, factory automation and implementation of IoT devices in smart homes will also drive market growth in the future.

Engineer’s hand is holding CPU’s computer. Source: Adobe

Taking all of these factors into account, Frost & Sullivan projects that the market for semiconductors will reach $620.07 billion by the end of 2022, which represents an increase from $555.9 billion in 2021.

“Although demand is expected across all verticals, growth is especially strong in the automotive sector. This is because the sector has become increasingly dependent on electronics for core functioning and performance improvements,” said Prabhu Karunakaran, industry principal, industrial at Frost & Sullivan in a statement.

“As a result, semiconductors’ content and value will increase rapidly.”