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The global radio frequency (RF) semiconductor market size was $2.1 billion in 2019, and it is projected to witness a CAGR of 8.8% during the forecast period (2020–2030). The growing adoption of mobile communication technologies, such as 4G and 5G, and rising deployment of the internet of things (IoT) technology have been observed as the primary drivers for the RF semiconductor industry.
The COVID-19 pandemic has negatively impacted the growth of the RF semiconductor market across the world, as it has resulted in the disruption of the supply chain of raw materials and components. Additionally, a possible economic recession, triggered by the pandemic, may shrink the IT budget of companies, which otherwise makes them potential customers of RF technologies.
In the RF semiconductor market outlook, on the basis of wafer size, the 200 mm category generated the highest revenue in 2019. This is attributed to the wide deployment of this type of transceivers in consumer electronics, automotive electronics, and telecommunications applications. An RF semiconductor component with a 200 mm wafer consumes low power and can work with low voltages in a wireless system.
In the RF semiconductor market, within the frequency band segment, SHF RF semiconductor components generated the highest revenue in 2019, as they are being quickly deployed for wireless communication and telecommunication applications. Further, the growing adoption of the 5G technology and product launches by major market players are projected to drive the demand for SHF RF semiconductors in the coming years.
In the RF semiconductor market, the <5 V category, under the operating voltage segment, is witnessing a huge demand, owing to the widespread application of such variants. The devices working in this operating voltage range are used in various application areas, including mobile phones, computers, automotive electronics, smart wearables, and IoT devices. Further, with the growing demand for smart devices across the globe, this category is projected to witness positive growth during the forecast period.
IT & telecommunications was the highest-revenue-generating category in the RF semiconductor market during 2014–2019, on the basis of application. The growing data consumption across the globe is driving the demand for the upgradation of telecommunication networks. Therefore, with the rising number of 5G deals being bagged by network providers and the massive growth in the mobile devices sector, the IT & telecommunications category is expected to continue flourishing throughout the forecast period.
The RF semiconductor industry in the Asia-Pacific (APAC) region is growing at a steady rate, owing to the surging demand for smartphones and 5G deployment in countries such as China, Japan, and South Korea. The 5G deployment rate would accelerate in China, owing to the ‘Made in China 2025’ roadmap, which envisages 5G as playing a transformative role in China’s ambition to gain a worldwide lead in a range of new technologies, such as industrial IoT, cloud computing, and artificial intelligence (AI). This has ensured a consistent demand for RF semiconductor components, which are predicted to play a vital role in the consumer electronics industry.
Owing to the rising internet penetration and massive adoption of smartphones and 5G technology, North America is slated to demonstrate the fastest growth during the forecast period. It has been projected that the 5G network would cover more than half the region by 2030. Moreover, mobile operators are heavily investing in content and media capabilities, along with 5G services and IoT applications. The growth in the regional RF semiconductor market can also be attributed to the upgradation of large and ultra-large data centers, from 10G transceivers to new 40G and 100G transceivers, for higher digital signal transmission speed.
The adoption of the AI technology is creating a huge positive impact on the RF semiconductor market growth. It is not only boosting the business, by enhancing customers’ experience, but also enabling predictive maintenance, to improve network reliability. By using effective machine learning algorithms, it can reduce the design complexities of RF semiconductor devices and optimize RF parameters, such as antenna sensitivity, channel bandwidth, and spectrum monitoring. AI is also unlocking new capabilities in military applications. Radio applications in signal detection and classification, spectrum sensing, and communication systems in unfavorables spectrum conditions are being hugely benefitted.
A key factor behind the growth of the RF semiconductor market is the surging usage of smartphones across the globe. After a decade of the introduction of modern smartphones, their penetration has grown rapidly in the developed world and is growing significantly in emerging economies. A large number of customers are now in emerging economies, such as China, India, Nigeria, Pakistan, and Indonesia. The rising urbanization rate and growing disposable income of the middle-income populace are fueling the demand for smartphones in these countries.
|Base Year (2019) Market Size||$2.06 billion|
|Forecast Period (2020-2030) CAGR||8.8%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, COVID-19 Impact, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||By Wafer Size; By Frequency Band; By Component; By Material; By Operating Voltage; By Application|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Spain, Russia, Japan, China, India, South Korea, Brazil, Mexico, Israel, South Africa|
|Secondary Sources and References (Partial List)||International Society of Automation (ISA), International Telecommunication Union, International Telecommunications Society (ITS), International Trade Union (ITU), Internet of Things Association (IOTA), American Electronics Association (AEA), China Consumers Association (CCA), Consumer Electronics & Technologies Industry Association (CETIA), Consumer Electronics Association (CEA), Control System Integrators Association (CSIA), Industrial Internet Consortium, International Association of Computer Science and Information Technology (IACSIT), GSM Association Organisation for Economic Co-operation and Development (OECD) Note: Above listed references and organizations are partial; the detailed and complete list is available in the final report.|
With the widespread adoption of the IoT technology, robust network capacity has become imperative. IoT helps build an interconnected framework of physical things, such as smart devices, through secure networks, using RF technologies. For instance, RF transceivers are used in smart home devices, to connect with the internet using Bluetooth or Wi-Fi. Further, with the increasing smart city projects in different parts of the world, the demand for smart devices is growing considerably.
In recent years, players in the RF semiconductor industry have been focused on product innovation, to stay ahead of their competitors. For instance:
The RF Semiconductor market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Wafer Size
Based on Frequency Band
Based on Component
Based on Material
Based on Operating Voltage
Based on Application
In 2030, the RF semiconductor market will generate $5.0 billion.
GaAs is the preferred material in the RF semiconductor industry because components made from it consume and dissipate less power, tolerate high voltages and temperatures, and are highly efficient.
APAC had been the largest region in the RF semiconductor market till 2019, while North America will likely witness the fastest growth during the forecast period.
The strongest growth drivers for the RF semiconductor industry are the increasing uptake of smartphones and IoT and heavy investments in the advancement of the telecom infrastructure.
To grow continuously, the RF semiconductor market players are launching new products.