- Summary
- Table Of Content
- Methodology
Discrete Semiconductor Market Size :
Discrete Semiconductor Market size is estimated to reach over USD 88.03 Billion by 2031 from a value of USD 43.72 Billion in 2022 and is projected to grow by USD 46.35 Billion in 2023, growing at a CAGR of 8.3% from 2023 to 2031.
Discrete Semiconductor Industry Scope & Overview:
A discrete semiconductor refers to a single semiconductor device that is designed to perform an elementary electronic function. The primary type of discrete semiconductors includes diodes, transistors, thyristors, and Schottky diodes among others. Discrete semiconductors offer a range of benefits including low voltage operation, high power density, shock resistance, improved efficiency, high reliability, flexibility in operations, and others. The aforementioned benefits of discrete semiconductors are major determinants for increasing its deployment in automotive, aerospace & defense, IT & telecommunication, consumer electronics, and other industries.
Global Discrete Semiconductor Market Insights :
Discrete Semiconductor Market Dynamics - (DRO) :
Key Drivers :
Rising utilization of discrete semiconductor in consumer electronics industry is driving the market growth
Discrete semiconductors are primarily utilized in the consumer electronics industry for application in smartphones, laptops, tablets, television, and other consumer devices. The characteristics of discrete semiconductors including faster speeds, high power density, and enhanced energy efficiency are key prospects increasing its utilization in the consumer electronics sector.
Factors including growing penetration of laptops, smartphones, and other consumer devices, progressions in consumer electronics, and rising demand for energy-efficient devices are primary aspects fostering the growth of the consumer electronics sector.
According to Japan Electronics and Information Technology, the overall production from the Japanese electronics industry was valued at USD 95.2 billion in 2021, depicting a growth of approximately 10% as compared to 2020. Furthermore, according to the Association of German Banks, the manufacturing and sales of electronics sector in Germany observed a significant growth of 10% in 2021 in comparison to 2020.
Therefore, the growth of consumer electronics sector is driving the integration of discrete semiconductors in smartphones, laptops, and other consumer devices, in turn proliferating the growth of the market.
Growing automotive sector is spurring the market growth
Discrete semiconductors are utilized in the automotive sector, particularly in automobile electronics systems. Discrete semiconductors are used in several components of automobiles including motor drives, hybrid and electric converters, driver assist (ADAS) and autonomous navigation systems, infotainment systems, and other related components. The features of discrete semiconductors including improved power conversion efficiency, low thermal dissipation, high power density, and flexible operations are increasing its utilization in the automotive sector.
Factors including rising automotive production, increasing investments in automobile manufacturing facilities, advancement in autonomous driving, and growing adoption of electric vehicles are among the vital aspects driving the growth of the automotive sector.
For instance, according to the International Organization of Motor Vehicle Manufacturers, the production of passenger cars across the world reached 61.59 million in 2022, representing an increase of around 8% as compared to 57.05 million in 2021.
Meanwhile, according to the European Automobile Manufacturers Association, the production of passenger cars in European Union reached up to 10.9 million in 2022, demonstrating an incline of 8.3% in contrast to 2021. Thus, the rise in automobile production is driving the adoption of discrete semiconductors for application in automobile electronics systems, in turn driving the discrete semiconductor market growth.
Key Restraints :
High cost of raw materials is restraining the market growth
The key raw materials used in the production of discrete semiconductors include silicon carbide, gallium nitride, and others. The aforementioned raw materials are associated with high costs, which is a primary factor limiting the market growth.
For instance, according to Henan Superior Abrasives Import & Export Co. Ltd, the average cost of silicon carbide typically ranges from USD 1,400 to USD 3,300 per ton. Additionally, according to Otto Chemie Pvt. Ltd., the average cost of gallium nitride with 99.99% assay is around USD 2,522 for 50 grams, which is relatively very high.
Therefore, the high costs of raw materials utilized in the manufacturing of discrete semiconductors are restraining the growth of the market.
Future Opportunities :
Rising adoption of electric vehicles is expected to promote potential opportunities for market growth
The rising adoption of electric vehicles is expected to present potential opportunities for the growth of the discrete semiconductor market. Discrete semiconductors are often used in several EV components including hybrid and electric converters, infotainment systems, motor drives, driver assist (ADAS) and autonomous navigation systems, and other related components.
Factors including the advances in electro mobility, accessibility to broad range of models, eco-friendliness, and prevalence of subsidies and tax rebates are driving the adoption of electric vehicles.
For instance, the government of India has launched several initiatives including FAME-II Initiatives, PLI Scheme, and duty reduction on electric vehicles to promote the adoption of EVs in the country.
Additionally, according to the International Energy Agency (IEA), the global sales of electric cars observed a substantial growth in 2022. According to IEA, the global sales of electric vehicles reached up to 2 million units during the first quarter of 2022, witnessing a growth of 75% in contrast to the first quarter of 2021.
Hence, the rising adoption of electric vehicles is anticipated to increase the utilization of discrete semiconductors for application in EV electronic systems, in turn promoting opportunities for market growth during the forecast period.
Discrete Semiconductor Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 88.03 Billion |
| CAGR (2023-2031) | 8.3% |
| By Type | Transistor, Thyristor, Diodes, Rectifier, and Others |
| By Sales Channel | Direct Sales and Distributor Sales |
| By End-User | Automotive, Aerospace & Defense, IT & Telecommunication, Consumer Electronics, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Infineon Technologies AG, STMicroelectronics, ABB, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, Mitsubishi Electric Corp, Fuji Electric Co. Ltd., Vishay Intertechnology Inc., Renesas Electronics Corporation, Nexperia, ROHM CO., LTD, and Microchip Technology Inc. |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Discrete Semiconductor Market Segmental Analysis :
By Type :
Based on the type, the market is segmented into transistor, thyristor, diodes, rectifier, and others. The transistor segment accounted for the largest revenue share of in the year 2022. Transistors refer to three-terminal semiconductor devices that are primarily used as switches or amplifiers and designed for controlling high voltage and current ratings. Moreover, transistors offer a range of benefits including faster-switching speeds, high breakdown tolerance, high electron mobility, enhanced thermal conductivity, and others. The aforementioned benefits of transistors are driving its utilization in aerospace, automotive, telecommunication, and other industrial applications that require high-frequency and high-efficiency solutions.
In September 2022, Gallium Semiconductor introduced a new series of GaN transistors that is designed for utilization in aerospace, 5G infrastructure, medical, and other industrial applications. Thus, rising innovation associated with transistors is among the prime factors driving the discrete semiconductor market trends.
The diodes segment is anticipated to register the fastest CAGR growth during the forecast period. Diodes refer to crystalline semiconductor devices that are mainly composed of silicon and utilized in power electronics circuits to convert alternating current to direct current. The ability of diodes to protect electrical circuits from damage caused by short circuits, overvoltage, and overcurrent is increasing its utilization in IT & telecommunication, automotive, and other industrial applications.
In May 2023, Littelfuse Inc. launched its new series of TVS diodes that provide high power and are optimized for addressing the rising demand for TVS diodes compatible with automated PCB assembly process. Therefore, the rising advancements related to discrete semiconductors including diodes are anticipated to boost the growth of the market during the forecast period.
By Sales Channel :
Based on the sales channel, the market is segregated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of discrete semiconductors comprises of both offline and online modes. In online mode, discrete semiconductors can be bought from e-commerce websites such as eBay, Alibaba, and others. The offline mode includes the distribution of discrete semiconductors through specialist stores, regional distributors, and others. In addition, buying from a distributor also benefits the consumer to select the best product available in the market.
For instance, Infineon Technologies AG and STMicroelectronics are among few of the discrete semiconductor manufacturers that offers a range of discrete semiconductors through several regional distributors including Arrow Electronics Inc., DigiKey Corporation, Mouser Electronics Inc., and others. Therefore, the increasing availability of discrete semiconductors in distributor sales channel is a prime factor proliferating the growth of the segment.
The direct sales channel segment is anticipated to register the fastest CAGR growth during the forecast period. In direct sales channel, products are sold directly to customers by the means of various physical outlets such as company outlets, and others. Moreover, the direct sales channel also comprises of online mode, in which the manufacturers sell the products through company owned websites. Additionally, purchasing discrete semiconductors from direct sales channel offers various benefits such as faster response time, higher product quality, competitive pricing, and higher return on investments, which are primary factors increasing the purchase of discrete semiconductors from direct sales channel.
For instance, Vishay Intertechnology Inc. is among few of the discrete semiconductor manufacturers that offer a broad range of discrete semiconductors including transistors, diodes, rectifiers, and others for direct purchase through company website. Thus, the availability of discrete semiconductors in direct sales channels, attributing to its above benefits, is a key factor projected to drive the growth of the segment during the forecast period.
By End-User :
Based on the end-user, the market is segregated into automotive, aerospace & defense, IT & telecommunication, consumer electronics, and others. The consumer electronics segment accounted for the largest revenue share of 29.52% in the year 2022. Factors including growing penetration of laptops, smartphones, and other consumer devices, progressions in consumer electronics, and rising demand for energy-efficient devices are driving the growth of the consumer electronics segment.
According to the Brazilian Electrical and Electronics Industry Association (ABINEE), the value of electrical and electronics sector in Brazil reached USD 42.2 billion in 2022, demonstrating a growth of approximately 8% as compared to USD 39.2 billion in 2021. Therefore, the growth of consumer electronics industry is driving the adoption of discrete semiconductors for its application in smartphones, laptops, and other consumer devices, in turn fostering the growth of the market.
Automotive segment is expected to witness the fastest CAGR growth during the forecast period. The growth of automotive segment is primarily driven by multiple factors including rising automotive production, increasing investments in automobile manufacturing facilities, advancement in autonomous driving, and growing adoption of electric vehicles among others.
For instance, STMicroelectronics offers a range of discrete semiconductors including transistors, and diodes for utilization in automotive applications including in-vehicle infotainment systems, inverters, ADAS, and other related systems. Additionally, Renesas Electronics Corporation is a manufacturer of discrete semiconductors that provides a range of transistors, thyristors, and diodes for utilization in automotive sector. Thus, the rising development of discrete semiconductors for utilization in automotive sector is projected to drive the market growth during the forecast period.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America is estimated to reach over USD 33.28 Billion by 2031 from a value of USD 16.27 Billion in 2022 and is projected to grow by USD 17.28 Billion in 2023. The market growth for discrete semiconductor in the North American region is mainly driven by its deployment in automotive, aerospace & defense, consumer electronics, and other industries. Moreover, the rising integration of discrete semiconductors in multiple automobile components including hybrid and electric converters, driver assist and autonomous navigation systems, motor drives, and infotainment systems has been a prevalent factor for market growth in the region.
For instance, according to the International Organization of Motor Vehicle Manufacturers, the overall automotive production in North America reached 14.79 million in 2022, witnessing a growth of nearly 10% from 13.46 million in 2021. The above factors are stimulating market growth in North America. Furthermore, factors including increasing investments in the field of electric vehicles and air defense systems are projected to drive the market growth in North America during the forecast period.
Asia-Pacific is expected to grow with the highest CAGR growth of 8.6% and is estimated to reach over USD 26.19 Billion by 2031 from a value of USD 12.72 Billion in 2022 and is projected to grow by USD 13.51 Billion in 2023. In addition, in the region, the China accounted for the maximum revenue share of 31.70% in the same year.
The growing pace of industrialization and development is providing lucrative growth prospects for the market in the region. In addition, factors including the growth of various industries including consumer electronics, IT & telecommunication, and others are driving the market growth for discrete semiconductors in the Asia-Pacific region.
For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is anticipated to grow at a substantial rate to reach USD 21.18 billion by 2025. Hence, the growing consumer electronics sector is driving the deployment of discrete semiconductors for application in electronic circuits of laptops, smartphones, and consumer appliances, thereby boosting the market growth in the Asia-Pacific region.
Top Key Players & Market Share Insights:
The discrete semiconductor market is highly competitive with major players providing discrete semiconductors to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in discrete semiconductor market. Key players in the discrete semiconductor market include-
- Infineon Technologies AG
- STMicroelectronics
- Renesas Electronics Corporation
- Nexperia
- ROHM CO., LTD
- Microchip Technology Inc.
- ABB
- TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION
- Mitsubishi Electric Corp
- Fuji Electric Co. Ltd.
- Vishay Intertechnology Inc.
Recent Industry Developments :
- In May 2023, Nexperia launched a new power GaN (gallium nitride) field effect transistor that is designed for utilization in low and high-voltage applications. The GaN transistor provides high power efficiency and compact solution size in multiple power conversion applications.
Key Questions Answered in the Report
What is discrete semiconductor? +
A discrete semiconductor refers to a single semiconductor device that is designed to perform an elementary electronic function.
What specific segmentation details are covered in the discrete semiconductor report, and how is the dominating segment impacting the market growth? +
For instance, by type segment has witnessed transistor as the dominating segment in the year 2022, owing to the increasing adoption of transistors in aerospace, automotive, telecommunication, and other industrial applications.
What specific segmentation details are covered in the discrete semiconductor market report, and how is the fastest segment anticipated to impact the market growth? +
For instance, by end-user segment has witnessed automotive as the fastest-growing segment during the forecast period due to rising adoption of discrete semiconductor in automobile electronics system including infotainment system, ADAS, and others.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2031? +
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rapid pace of industrialization and growth of multiple industries such as consumer electronics, IT & telecommunication, and others.
