Discrete Semiconductor Market Size, Share & COVID-19 Impact Analysis, By Type (Diodes, Transistors, Thyristors, Modules), By Application (Networking & Communication, Automotive, Consumer Electronics, Industrial, Others) and Regional Forecast, 2021-2028

The global discrete semiconductor market size was USD 42.97 billion in 2020 and is projected to grow from USD 45.43 billion in 2021 to USD 78.33 billion by 2028, at a CAGR of 8.1%. Asia Pacific dominated the global discrete semiconductor market share of 54.15% in 2020. Based on our analysis, the global market exhibited a modest growth of 2.9% in 2020 as compared to the average year-on-year growth during 2017-2019.

The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with discrete semiconductors witnessing a positive impact on demand across all regions amid the pandemic.

Discrete semiconductors are the single distinct semiconductors that are utilized in electronic devices predominantly to control electric current. Types include diodes, transistors, thyristors, and modules.

Factors such as escalating demand for power-efficient devices, increasing dominance of wireless and portable electronic products, rapid growth in the automotive industry, rise in the development of AI-based semiconductors, and increasing demand for metal–oxide–semiconductor field-effect transistor (MOSFETs) and insulated-gate bipolar transistor (IGBTs), diodes and thyristors in electronics and automobiles industry are driving the market growth. Additionally, technological advancements in production techniques and a rise in R&D activities are set to create new opportunities for the discrete semiconductor market growth in the forecast period.

COVID-19 Impact: Impulsive Business Conditions Hampered Discrete Semiconductor Market

The COVID-19 pandemic, coupled with the U.S.-China trade war and 2019’s down cycle, had an enormous impact on the global economy and relative technology industry. Several markers, including discrete semiconductors, have been affected drastically. The supply chain was disrupted owing to the shutdown of multiple manufacturing facilities across the globe. Countries such as India, the U.S., Malaysia, Italy, Thailand, and others have witnessed the drastic aftermath of the COVID-19 pandemic. For instance, The International Data Corporation (IDC) estimated the revenue contraction by ~6% with a 54% probability for the worldwide semiconductor industry in 2020. Whereas Vietnam relatively had a low impact attributed to the growing demand for semiconductor devices across the electronics industry.

However, the rising acceptance of work from home is surging the communication, consumer electronics, and other applications across the globe, which is expected to lead to the moderate growth of this market in the forecast period. Additionally, the active involvement of governments and manufacturers to recover the losses is projected to revitalize the economy.

LATEST TRENDS

Increasing Adoption of Automated and Electric Vehicles is Laying Foundation for Future Growth

In the current scenario, the utilization of discrete semiconductor devices across the electric and automation-driven automotive industry is a growing trend. It is attributed to the automotive improvement with vehicles enabled with independent driving guides, mobile phone integration, heads-up displays, and others. This, in turn, is boosting the discrete devices demand.

Additionally, the augmented demand for these semiconductors is attributed to the adoption of automatic and electric vehicles. Electronic components across the automotive industry are crucial for safety and are subjected to extreme environmental and voltages conditions. Thus, driving the manufacturers to manufacture new products for electric and automatic vehicle applications. For instance, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION is offering power MOSFETs for multiple automotive applications, including transmission management, electric power steering, and others.

DRIVING FACTORS

Ever-growing Consumer Electronics Industry is Brightening Market Prospects

Nowadays, consumer electronics are witnessing high demand owing to the favorable investment incentives and low-cost labor availability. The increased demand for smartphones, tablet computers, portable electronics, microwave ovens, refrigerators, TVs, and others has shifted the focus on discrete semiconductors. It is therefore driving the market growth. The consumer electronics manufacturers are continuously focusing on technological advancements. Thus, spending heavily on R&D to bring out the industry-leading technology in order the meet the escalating demand. This, in turn, is expected to have an influence on the demand for aforesaid semiconductors in the forecast period.

In addition, the leading market participants are developing transistors, diodes, thyristors to cater to the electric control demands thus, reducing the power consumption. For instance, in July 2021, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION launched a discrete insulated-gate bipolar transistor (IGBT) ranked at ‘1350 V/30 A, GT30N135SRA’ for home-based appliances, including microwave ovens and others to reduce power consumption.

Therefore, the rising demand for consumer electronic products is expected to drive the market growth.

RESTRAINING FACTORS

Price Pressure and Design Complexity to Hinder Market Growth

Continuously increasing prices are anticipated to hinder the market growth. It is because the leading manufacturers are facing difficulties in procuring the materials. COVID-19 pandemic has further worsened the conditions. Additionally, the trade war between the U.S.-China coupled with the tariff disruptions is impacting the export and import of components that are eventually affecting the manufacturing cost of the discrete devices. As a result, the market is seeing a rise in focus on integrated circuits, thus hampering the growth of the market across the globe. The design complexity across IGBTs is also expected to hamper the market potential.

SEGMENTATION

By Type Analysis

Augmented Utilization across Leading Applications to Depict Highest CAGR for Transistors Segment

Based on the type, the market is segmented into transistors, diodes, thyristors, and modules.

The transistors segment is in the best position to lead the market in terms of CAGR. It is attributed to the amplified utilization of bipolar transistors, IGBTs, and MOSFETs across automotive, consumer electronics, and other industries. IGBTs are widely accepted in high-voltage applications owing to higher switching frequency. As a result, it is propelling the growth of the market.

Diodes are capturing the highest discrete semiconductor market share owing to, its high resistance capability in the reverse direction that does not permit electrons to flow in reverse-biased mode across electronic circuits. Thyristors and modules segments are expected to witness substantial growth. Thyristors, in particular, are capturing significant market share attributed to their low cost, easy to control, and first-rate power handling capacity. It is highly valuable in vehicle ignition switches, variable-speed motor drives, and other applications.

By Application Analysis

Increasing Demand of Portable Electronics, Smart Home Products, and Others to Portray Strong Growth for Consumer Electronics Segment

Based on the application, the market is categorized into consumer electronics, networking & communication, industrial, automotive and others.

The consumer electronics segment is predictable to witness the highest CAGR in the estimate period. It is because gaming, wearables and other devices, portable electronics, smart home products are witnessing aggressive demand across the countries.

The automotive segment is probable to behold second-highest growth owing to the amplified demand for discrete semiconductors for regenerative braking and autonomous vehicle technology. Electronic components are crucial for security in the automotive industry and are compatible with great voltages and environmental conditions.

The Industrial and others segment is witnessing steady growth in the market. The alteration to building security’s energy-efficient technologies and other industrial lighting systems is expected to increase the demand for discrete devices across industrial applications. The networking & communication segment is witnessing substantial growth attributed to the ever-growing efficient components’ demand across the globe. The rising acceptance of the work from home concept is also propelling the growth of this segment.

REGIONAL INSIGHTS

In terms of the geographical outlook,the market share is broken down into North America, Asia Pacific, Europe, South America, and the Middle East & Africa and is further divided into countries.

Asia Pacific is dominating the market in terms of CAGR and market share owing to the existence of leading market participants in China, India, South Korea, Taiwan, and other countries. Additionally, the increasing popularity of portable and wireless electronic products and rapid growth in the automotive industry is complementing the growth of the market across the region.

India to Record Highest CAGR with Key Players Establishing New Manufacturing and Dealership Facilities

India has emerged as one of the major manufacturing hubs for domestic as well as international manufacturers, with companies setting up new manufacturing units. Additionally, the presence of local manufacturers will also boost the market growth. Moreover, the India Brand Equity Foundation (IBEF) stated that, by 2025, India’s demand for semiconductor goods would reach USD 400.00 billion. That is eventually bolstering the discrete devices demand.

North America is estimated to grow exponentially in the forecast period attributed to the large automotive and industrial sector that constantly demands discrete devices. Additionally, the Semiconductor Industry Association (SIA), in its 2019 factbook, stated that in 2018, the U.S. semiconductor industry invested nearly USD 38.7 billion in R&D thus, boosting the market growth.

Europe is anticipated to witness substantial growth that is backed by the well-placed automotive and electronics industry. Companies invest in innovative technologies to cater to the surging demand for advanced discrete devices across the region.

The Middle East and Africa, and South America are expected to grow at a considerable rate owing to the rising disposable income levels and increasing consumption of smartphones, portable devices, and others across Brazil, UAE and others.

KEY INDUSTRY PLAYERS

Key Players Launching Industry-leading Devices to Strengthen its Market Position

Key market participants are focused on introducing industry-leading discrete semiconductor devices to fulfill rising demands across automotive, electronics, and other applications. For instance, in March 2021, Fuji Electric Co., Ltd. added ‘1,200 V-rated products in the series of discrete IGBT XS products. It helps in reducing power loss during switching and as current moves in the circuit; thus, helping in power saving across the products where they are equipped.

Taiwan Semiconductor is Collaborating with Regional and Local Market Players to Capture Unattainable Market

Taiwan Semiconductor is focusing on maximizing the discrete semiconductors business by purposefully acquiring regional and local companies. It is therefore catering to the end-user’s demand. For instance, in January 2019, Taiwan Semiconductor joined forces with a semiconductor distribution specialist in Europe, namely ‘EBV Elektronik’, (a subsidiary of Avnet, Inc.)’ to distribute Taiwan Semiconductor’s all-inclusive product range including, Bridge rectifiers, diode, transistor, Photocoupler and others in European Countries. Additionally, as a part of the global agreement, Taiwan Semiconductor’s products will also be available in Asia and the U.S. through Avnet, Inc.

LIST OF KEY COMPANIES PROFILED:

• NXP Semiconductors (Netherlands)


• Infineon Technologies AG (Germany)


• Semiconductor Components Industries, LLC (U.S.)


• TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION (Japan)


• Vishay Intertechnology, Inc. (U.S.)


• STMicroelectronics (Switzerland)


• Taiwan Semiconductor (Taiwan)


• Nexperia (Netherlands)


• Renesas Electronics Corporation (Japan)


• ABB (Switzerland)


• StarPower Semiconductor Ltd. (China)


• Diodes Incorporated (U.S.)


• GeneSiC Semiconductor Inc. (U.S.)


• WeEn Semiconductors (China)


• ROHM CO., LTD. (Japan)


• Texas Instruments Incorporated (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2020: - Infineon Technologies AG introduced industry-leading ‘TRENCHSTOP IGBT7 technology’, specifically suited for industrial motor drives, photovoltaic, power factor correction, and uninterruptible power supplies applications.


• July 2020: STMicroelectronics launched new 26 Schottky diodes in low-profile SBM and SMA flat packages with a current rating between 1-5 A and voltage rating of 25-200 V. With low voltage, these devices deliver superior energy efficiency for consumer and industrial applications.

REPORT COVERAGE

The global market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.

Report Scope and Segmentation