$50+ Billion Semiconductor Assembly and Testing Services Market (2020 to 2028) – by Service, Application and Geography – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Semiconductor Assembly and Testing Services Market Forecast to 2028 – COVID-19 Impact and Global Analysis By Service and Application” report has been added to ResearchAndMarkets.com’s offering.
The semiconductor assembly and testing services market was valued at US$ 50,223.8 million in 2020 and is projected to reach US$ 71,784.6 million by 2028; it is expected to grow at a CAGR of 4.56% from 2020 to 2028.
The industrial automation plays an essential role in every industry and manufacturing scenario. It helps save time and money as well as reduces human efforts. The use of control systems, including computers or robots, and information technologies for handling different processes and machinery help maximize the productivity rate of any company. The growing adoption of IoT across industrial, commercial, and residential sectors is accelerating the use of semiconductor equipment. For instance, General Electric offers Brilliant Factory, a suite of hardware assets, software, and consultation services, for upgrading factories as per the industrial IoT (IIoT) principles. The company claimed that this can help manufacturers enhance the performance of their factories using predictive analytics. Moreover, industrial automation is being used in every sector, including manufacturing, electronics, automobile, and aerospace & defense, which, in turn, is bolstering the demand for semiconductor devices. Thus, the high use of semiconductor devices in industrial automation is propelling the growth of the semiconductor assembly and testing services market.
Based on service, the global semiconductor assembly and testing services market is segmented into assembly & packaging services and testing services. The assembly and packaging services segment held a larger market share in 2020. On the basis of application, the market is segmented into consumer electronics, automotive, medical, industrial, and other applications. The consumer electronics segment dominated the market in 2020, and the automotive is the expected to register the highest CAGR in the market during 2021-2028. Based on region, the semiconductor assembly and testing services market is segmented into North America, Europe, APAC, and RoW. In 2020, APAC dominated the global market by accounting for more than ~50% revenue share, followed by North America and Europe, respectively.
The unprecedented growth in the spread of the COVID-19 has urged governments worldwide to impose strict restrictions on vehicle and human movement. Travel bans, mass lockdowns, and business shutdowns have affected several economies and industries in various countries. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to temporary shutdown of activities. The semiconductor industry took a significant hit due to the lowered demand for electronic components from the industrial sector and other end users.
Moreover, the revenue of microelectronics providers also decreased due to downscaling of production during the lockdown period. Post lockdown, the semiconductor production facilities restarted the operation by taking social distancing measures. Besides, work from home and remote monitoring strategies helped increase the sale of advanced electronics products for better connectivity. The demand for IT and telecommunications products for ensuring effective communications increased in many businesses, which allowed the industry to evolve with new technologies such as IoT connectivity. The increasing demand for electronic devices with small form factor, specifically for health monitoring, as well as smartphones augmented the semiconductor assembly and testing services market growth.
Market Dynamics
Drivers
- Rising Demand for Consumer Electronics
- High Usage of Semiconductor Devices in Industrial Automation
Restraints
- Growing E-Waste Problem
Opportunities
- Rising Automotive Sector to Propel Semiconductor Assembly and Testing Services
Future Trends
- Advancements in Semiconductor Packaging Techniques
Companies Mentioned
- Amkor Technology
- ASE Group
- Chipbond Technology Corporation
- Integrated Micro-Electronics, Inc.
- Integra Technologies
- Powertech Technology Inc.
- Siliconware Precision Industries Co., Ltd.
- Teledyne Technologies Incorporated
- Unisem Group
- JCET Group Co., Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/wwv8nh
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