Report : Semiconductor Assembly and Testing Services Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Service (Assembly & Packaging Services and Testing Services) and Application (Consumer Electronics, Automotive, Medical, Industrial, and Other Applications)
According to the new research report titled “Semiconductor Assembly and Testing Services Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 71,784.6 million by 2028, registering a CAGR of 4.7% from 2021 to 2028.
Semiconductor industry plays an essential role in enabling the use of cutting-edge digital technologies in various industries, such as consumer electronics, automotive, medical, IT, and telecommunications. With continuous advancements in technologies such as autonomous driving, 5G, artificial intelligence (AI), and Internet of Things (IoT); and rising research and development investments by semiconductor designing and manufacturing companies worldwide, the global semiconductor industry is anticipated to witness a robust growth over the forecast period of 2021 to 2028. APAC is the largest contributor to the global semiconductor growth, and China, Taiwan, Japan, and South Korea are among the key countries in the global semiconductor industry. Moreover, high demand for telecom infrastructure and consumer electronics is fueling the growth of the semiconductor assembly, packaging, and testing market in APAC. The growth of the semiconductor assembly and testing market in North America is attributed to the surge in semiconductor sales with rising demand of industrial automation, vehicle electrification, autonomous driving, 5G, IoT, and digital connectivity across the US and Canada, among other countries. Moreover, industries such as consumer electronics, automotive, and telecom are boost bolstering the demand for demand for advanced semiconductors, thereby contributing to the growth of 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.
Key Findings of Study:
The integrated circuit manufacturers incorporate newer chip-packaging options such as 2.5D integrated circuits and 3D integrated circuits into their production processes for ensuring high performance at low cost. These advanced packaging technologies are in their initial phase, claiming greater chip connectivity and lower power consumption over the traditional packaging configurations. With the adoption of advanced packaging technologies, the demand for semiconductor equipment is likely to rise in future.
Additionally, in response to the mounting consumer inclination toward smartwatches and IoT devices, manufacturers are upgrading smart wearables with new features such as health monitoring, activity monitoring, and internet connectivity with the use of semiconductor technologies. The growing adoption of advanced technologies would contribute to the semiconductor assembly and testing services market in the coming years.