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Valued at $684.8 million in 2018, the global silicon on insulator (SOI) market is projected to surpass $2,285.5 million by 2024, witnessing a CAGR of 22.7% during the forecast period (2019-2024). Among all regions, Asia-Pacific (APAC) is expected to exhibit the fastest growth in the industry during the forecast period. This can be majorly attributed to the considerable improvement in consumer spending and vast consumer-base; along with the growing telecommunication industry in countries like China, Japan, and South Korea.
Dynamics of Silicon on Insulator Market
The rising demand for SOIs in consumer electronics is driving the market growth for SOIs across the globe. This is attributed to their application in consumer electronics such as smartphones, notebooks, digital cameras, tablets, and other such electronic devices. In addition, demand for SOIs would continue to increase due to growing adoption of smartphones which consist of 3G/4G long term evolution (LTE) multimode connectivity, advanced multimedia features and location awareness capabilities. The largest demand for smartphones observed in regions including APAC and Latin America (LATAM). With rising internet penetration and increasing digitalization, demand for smartphones is increasing across the globe.
Moreover, with forthcoming 5G technology, demand for smartphones is expected to increase over the forecast period. Additionally, increasing industrialization and rising disposable income of the populace in countries such as China and India, are some of the key factors driving the sales of mobile devices. For instance, in China, disposable income increased by around 7.5% from 2017 to 2018. With rising disposable income of the populace and increasing adoption of digital services, demand for smartphones would increase over the forecast period. This, in turn would increase the production of chips and microchips that are used in smartphones on which SOI technology is implemented and thus, correspondingly drive the silicon on insulator market growth in the coming years.
Silicon on Insulator Market Segmentation Analysis
Based on wafer size, the 200 mm category held the largest share in 2018. This is mainly driven by the sustained demand for RF-SOI substrates (radio frequency applications) from regions like North America and APAC which are specifically designed for mobility and automotive markets.
Based on wafer type, the RF-SOI category contributed the largest revenue to the market in 2018. This is due to the increasing adoption of RF-SOI in advanced LTE smartphones. The growth of RF-SOI category is also driven on account of rising investments for the development of 5G network around the globe.
Based on application, consumer electronics application held highest share in 2018. This is attributed to the increasing deployment of RF-SOI in smartphones, laptops, tablets, automatic washing machines & refrigerators, and others. The growth smartphones market is fueled by fast 3G/4G LTE multimode connectivity which mainly driven by the RF FEM comprising by RF chips. Thus, rising demand for smartphones, laptops, and others would increase the demand for RF-SOI based wafers, and correspondingly proliferate the silicon on insulator market in consumer electronics application.
Geographical Analysis of Silicon on Insulator Market
Globally, the APAC region held the largest market share, of 55.4%, in 2018 Within APAC, countries such as Japan, China, and South Korea are increasingly focusing on introducing and expanding 5G network services in the coming years. For instance, Japan is heavily investing in 5G technology and is ready to deploy this technology ahead of the Tokyo 2020 Paralympic and Olympic games, for better network coverage and connectivity.
Competitive Landscape of Silicon on Insulator Market
The global silicon on insulator market is highly competitive in nature, characterized by the presence of companies such as Shin-Etsu Chemical Co. Ltd. and SUMCO Corporation. Apart from this, Soitec SA, STMicroelectronics N.V., Skyworks Solutions Inc., Murata Manufacturing Co. Ltd., United Microelectronics Corporation, Tower Semiconductor Ltd., Shanghai Simgui Technology Co. Ltd., GlobalWafers Singapore Pte. Ltd., and GlobalFoundries U.S. Inc., are the other key players operating in the silicon on insulator market.
Recent Strategic Developments of Major Silicon on Insulator Market Players
Major players in the global silicon on insulator market were involved in various activities, such as mergers and acquisitions, partnerships, product launches, client wins, geographic expansions, and facility expansions to gain a competitive edge in the market. For instance, in January 2019, Soitec SA expanded the collaboration with Samsung Foundry to enhance the volume supply of FD-SOIs. The agreement extends the current partnership and secures high-volume supply of FD-SOI technology to meet the industry's current and future demand especially in consumer, internet of things (IoT), and automotive applications.
Moreover, in September 2018, Shin-Etsu Chemical Co., Ltd. announced to invest $996 million (¥110 billion) for the expansion of production capacity of its silicone business across the APAC region. This facility expansion would increase the company’s footprint in the region while strengthening its production system of silicon wafers.
Key Questions Addressed/Answered in the Report