North America Semi-conductors Market Outlook, 2029

The constant demand for innovative consumer electronic devices, including smartphones, tablets, laptops, and smart appliances, fuels the need for advanced semiconductors. North America is a significant consumer of electronic products, contributing to a steady demand for semiconductor components. The automotive sector in North America is a major consumer of semiconductors, with increasing demand for advanced driver-assistance systems (ADAS), infotainment systems, electric vehicles (EVs), and connectivity solutions. The integration of semiconductor technologies enhances vehicle performance, safety, and efficiency. The rollout of 5G networks and the adoption of 5G-enabled devices drive the demand for semiconductors in North America.

The transition to 5G technology requires advanced semiconductor components for telecommunications infrastructure and devices. The growth of AI and ML applications in North America, ranging from data centres to edge devices, fuels the demand for specialised semiconductor solutions. Graphics processing units (GPUs) and accelerators are essential for handling complex computations in AI and ML tasks. The expansion of cloud computing services and data centres in North America increases the demand for semiconductors.

Data centre infrastructure relies on semiconductor technologies for processing, storage, and networking capabilities. The increasing adoption of IoT devices in homes, industries, and smart cities contributes to the demand for semiconductors. Sensors, microcontrollers, and connectivity solutions are integral to IoT applications. The healthcare sector in North America relies on semiconductor technologies for medical imaging devices, diagnostic equipment, and wearable health devices. The growing emphasis on healthcare technology and digital health drives semiconductor demand.

According to the research report, 'North America Semiconductor Market Outlook, 2028', the North America Semiconductor market is anticipated to add to more than USD 90 Billion by 2024-2029. North America, particularly the United States, is a major hub for semiconductor manufacturing and innovation. The region is home to several leading semiconductor companies and research institutions. Silicon Valley, located in the southern part of the San Francisco Bay Area in California, is renowned as a global centre for technology and innovation. Many semiconductor startups and established companies have emerged from Silicon Valley, contributing to advancements in semiconductor technologies.

Semiconductors from North America find applications in diverse sectors, including consumer electronics, telecommunications, automotive, healthcare, aerospace, and industrial automation. The versatility of semiconductor technologies contributes to their widespread use across various industries. The region is actively involved in quantum computing research. Several companies and research institutions are exploring the potential of quantum processors, which have the potential to revolutionise computing capabilities. Semiconductor companies in North America often collaborate with major technology giants such as Apple, Google, Microsoft, and Amazon.

These collaborations drive advancements in semiconductor technologies and their integration into consumer devices and cloud computing infrastructure. North America is home to numerous fabless semiconductor companies. These companies focus on designing semiconductor components without engaging in the actual manufacturing process. They often collaborate with foundries in other regions for production. The region continues to invest heavily in semiconductor research and development. Research institutions and industry players collaborate to push the boundaries of semiconductor capabilities and explore novel technologies.

Market Drivers

• Consumer Electronics Demand: The constant demand for smartphones, laptops, smartwatches, and other consumer electronics drives the need for advanced semiconductor technologies. Consumer preferences for more powerful, energy-efficient, and feature-rich devices contribute to semiconductor market growth.
• Automotive Innovation: The automotive industry is undergoing a significant transformation with the integration of advanced technologies such as electric vehicles (EVs), autonomous driving features, and connected vehicles. Semiconductors play a crucial role in powering these innovations, leading to increased demand.

Market Challenges

• Complex Manufacturing Processes: Semiconductor manufacturing involves complex processes with high precision requirements. Challenges in scaling production and maintaining high yields can impact the industry's ability to meet growing demand.
• Technological Complexity: The rapid pace of technological advancements in semiconductors introduces challenges related to complexity. Designing and manufacturing advanced semiconductor technologies requires significant investments in research and development.

Market opportunity

• 5G Technology Adoption: The ongoing deployment and expansion of 5G networks in North America provide opportunities for semiconductor companies to supply components for 5G infrastructure, devices, and equipment. The demand for high-performance semiconductors in the telecommunications sector is expected to grow.
• Medical Electronics Advancements: The healthcare industry's increasing reliance on advanced medical devices and diagnostic equipment opens opportunities for semiconductor companies. Innovations in medical imaging technologies, wearable devices, and health monitoring systems present growth prospects.

Based on the device types, they are segmented into memory devices, logic semiconductors, microprocessor units, analogue ICs, optoelectronic semiconductors, discrete semiconductors, power semiconductors, microcontroller units, digital signal processors, and semiconductor sensors.

In North America, the microprocessor unit significantly contributes to the market. North America is a hub for technology and computing infrastructure, with a high concentration of data centres, cloud computing facilities, and enterprises. Microprocessors serve as the computing brains in servers, data centres, and various computing systems that form the backbone of the digital economy. North America, particularly Silicon Valley in California, is home to numerous semiconductor design and innovation centers.

Leading semiconductor companies and startups in the region focus on designing advanced microprocessors that power a wide range of devices, from servers to edge computing devices. Many semiconductor companies in North America follow a fabless business model, specialising in the design of semiconductor components while outsourcing manufacturing to foundries. These fabless companies often focus on designing microprocessors, capitalising on their expertise in CPU architecture and innovation. North America is at the forefront of advancing computing technologies, including high-performance computing (HPC), artificial intelligence (AI), and machine learning (ML).

Microprocessors play a crucial role in these applications, driving demand for powerful and efficient CPU designs. The automotive industry in North America is increasingly incorporating advanced computing technologies for in-vehicle infotainment, driver assistance systems, and autonomous driving features. Microprocessors are crucial for the processing power required in modern vehicles.

In terms of the applications, they are segmented into Networking & Communications, Data Centre/Data Processing, Consumer Electronics, Industrial, Automotive, Government, Healthcare, Aerospace, and Defence.

Among all the networking and communications markets, when it comes to networking technology adoption and advancement, North America leads the way. When it comes to the rollout of 4G and 5G networks, as well as high-speed broadband, the area has led the way. The need for specialised semiconductor components has been pushed by the need for communication devices and networking infrastructure. The development of advanced telecommunications infrastructure, including fibre-optic networks and high-capacity data transmission systems, relies on specialised semiconductor components. North America's commitment to expanding and enhancing communication networks contributes to the demand for advanced semiconductor solutions.

The growth of data centres and cloud computing services in North America is a significant driver for network and communication-related semiconductors. These components include processors for networking equipment, switches, routers, and other devices that enable efficient data transmission and connectivity. The increasing adoption of IoT devices and the expansion of smart city initiatives contribute to the demand for semiconductor solutions that enable connectivity. Network and communication components are essential for creating a robust and interconnected IoT ecosystem.

The development of wireless communication technologies, including Wi-Fi standards, Bluetooth, and other wireless protocols, involves semiconductor solutions. North American companies are actively involved in advancing wireless communication technologies, leading to increased demand for related semiconductor products.

Based on the report, the major countries covered in the report include the United States, Canada, Mexico, and the rest of North America.

In North America, the United States leads the market. The United States is home to some of the world's leading semiconductor companies, research institutions, and innovation centers. Silicon Valley in California, in particular, is a renowned global hub for technology and innovation, hosting numerous semiconductor firms and startups that drive advancements in the industry. The fabless semiconductor model, where companies focus on designing semiconductor chips rather than manufacturing them, is widely adopted in the United States.

This model allows companies to leverage specialised expertise in design while outsourcing manufacturing to foundries, contributing to innovation and cost-effectiveness. The United States has advanced semiconductor manufacturing facilities that produce cutting-edge chips. While Asia-Pacific countries, such as Taiwan and South Korea, also have significant manufacturing capabilities, the USA's facilities contribute to the production of high-performance and specialised semiconductor products. The USA leads in research and development (R&D) investments, fostering technological innovation in semiconductor design and manufacturing.

Ongoing R&D efforts contribute to the development of advanced semiconductor technologies, including process nodes, materials, and design architectures. The USA is at the forefront of artificial intelligence (AI), machine learning (ML), and other emerging technologies. Semiconductors play a crucial role in powering AI applications, and their expertise in these domains contributes to the USA's leadership in the semiconductor market.

The North America semiconductor market is extremely competitive, with significant industry players driving innovation, technological improvements, and market expansion. Leading semiconductor manufacturers, like Intel Corporation, Samsung Electronics Co., Ltd., and Taiwan Semiconductor Manufacturing Company (TSMC), play important roles by using their considerable production capabilities and expertise in developing innovative semiconductor components. Furthermore, Qualcomm, NVIDIA, and AMD are major players in specific categories, such as mobile processors, graphics processing units (GPUs), and other specialized devices.

The business also sees collaboration and partnerships, with companies forging strategic alliances to boost R&D efforts and meet changing market demands. As the market continues to evolve with the rise of upcoming technologies such as 5G, artificial intelligence, and the Internet of Things, competition intensifies, prompting companies to invest in talent, research, and cutting-edge manufacturing processes to maintain a competitive edge in this dynamic and rapidly evolving landscape.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Semiconductor market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Device type

• Memory Device
• Logic Semiconductors
• Microprocessor Unit
• Analog IC
• Op to Semiconductor
• Discrete Semiconductor
• Power Semiconductor
• Micro Controller Unit
• Digital Signal Processors
• Semiconductor Sensors

By Application

• Networking & Communications
• Data Centre/ Data Processing
• Consumer Electronics
• Industrial
• Automotive
• Government
• Healthcare
• Aerospace and Defence
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Semiconductor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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