High-Reliability Semiconductors Industry Research Report 2023: Path to Imminent Growth

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Research and Markets have added the "High-Reliability Semiconductors Market Size and Forecasts, 2023 To 2031" report to its offering which expects the high-reliability semiconductors market to grow at a CAGR of 5% during the forecast period of 2023 to 2031. This study report represents an analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.

In numerous industries, including aerospace, defense, space, and automotive, high-reliability semiconductor components are crucial. These components must undergo rigorous screening and quality conformance inspections (QCI) to ensure their dependability, top performance, and operability.

As intelligence and functionality increase across numerous end-use industries' application domains, the cost of failure has become excessively high. To address these challenges, key market participants emphasize the design of systems with high-reliability semiconductor components that can operate in harsh environments.

Companies in the global market are increasing their R&D capabilities to provide proprietary silicon isolation technology for the deployment of high-performance noise immunity in components used in military and space applications.

In the last few years, the widespread adoption of new social infrastructure technologies, such as electric vehicles (EVs) and 5G, has created a strong demand for component safety and reliability in the automotive industry, which has had a positive effect on the growth of the global high-reliability semiconductor market.

Increasing Global Investment in the Aerospace and Defense Sector

As a result of geopolitical concerns on a global scale, several nations are focusing on strengthening their military bases and increasing their expenditures to do so. The US Department of Defense, for instance, has requested a budget allocation of US$ 718 billion for 2020, a 5% increase over the 2019 budget. Additionally, the United States encourages NATO members to increase their military spending to 2% of their respective GDPs. To meet NATO's goal of spending 2% of GDP on defense, France has indicated that it will increase defense spending by approximately 40% over the next six years.

Additionally, The commercial aviation industry is expanding rapidly due to factors such as the increasing number of passengers and the need to replace obsolete equipment. According to the report, due to the order backlog of commercial aviation companies, a large number of aircraft are expected to be constructed. These aircraft are constructed using cutting-edge technologies for fuel efficiency. In addition, urbanization in emerging nations such as India, China, and South Korea is anticipated to increase the number of middle-class air travelers by approximately 50% to about 6 billion by 2030.

In terms of air traffic, Asia-Pacific is anticipated to surpass Europe and North America. Increased air traffic is increasing the demand for aircraft parts and components, which is driving the growth of the high-reliability semiconductor market.

Increase in Automotive Sector Applications of High-reliability Semiconductors

In the automotive industry, reliability is gaining importance to enhance vehicle performance. In the automotive industry, components with zero failure rates over the life of the vehicle are required. Semiconductor components are used to enhance the safety, speed, and efficiency of a vehicle.

In the coming years, demand for high-reliability semiconductors is anticipated to increase as the popularity of autonomous vehicles with advanced features grows. Global demand for autonomous vehicles is consistently increasing. This factor is likely to generate lucrative market opportunities for high-reliability semiconductors shortly.

To include advanced features in automobiles, leading automakers rely on semiconductor manufacturers. High-reliability MOSFETs, ICs, optoelectronic sensors, and amplifiers are among the semiconductor components being developed by manufacturers for autonomous vehicles.

Increase in Demand for Semiconductor Components with High Reliability in the Aerospace Industry

Protecting satellites, launchers, military vehicles, and submarine operations requires the dependability of components and systems. The aerospace industry requires long-term system dependability for mission success. High-reliability semiconductor components deliver dependable performance in extreme and harsh environments for a variety of applications, such as satellites, avionics systems, and combat vehicles.

The demand for high-performance semiconductors is fueled by several factors, including a rise in government spending on the military and defense sector and an increase in aircraft modernization and upgrades. This contributes to the expansion of the market.

Components of high-reliability semiconductors used in the aerospace and defense industries, such as data converters, R/F microwaves, amplifiers, and MEMS products, can operate for years without performance degradation. Therefore, they are preferred over general semiconductor components, which can compromise long-term system reliability and lead to premature system failure.

Surface Mount Technology Dominated the Technology Market in 2022

The High-Reliability Semiconductor Market is segmented based on technology into Surface mount technology and Through Hole technology. In 2022, the Surface mount technology segment held the largest market share at 65%. Compared to conventional PCB manufacturing techniques, SMT permits the creation of boards with a greater number of very small and specialized components. Additionally, components can be stacked on both sides of the circuit board, resulting in a higher density of functionality per square inch.

Due to equipment including fully automated pick and place systems, high-volume reflow ovens, conveyors, and stencil printing machines, SMT is ideal for the mass assembly of these delicate and complex PCBs that will be used in a variety of electronic devices.

In this technology, electrical components can be mounted directly on a printed circuit board's surface. It is more productive than through-hole technology. Due to the miniaturization of electronic components, the semiconductor manufacturing industry is experiencing a rapid increase in demand for this technology.

Furthermore, surface mount technology is extremely cost-effective. During the forecast period, this technology is anticipated to increase the high-reliability semiconductor market share. Multiple manufacturers are concentrating on the development of compact devices.

Ceramic Packaging Materials Led the Market in 2022

According to the research report on the high-reliability semiconductor industry, the global packaging market is segmented into plastic and ceramic. In 2022, the ceramic segment dominated the global market, holding a 55% share. It is likely to maintain its dominance throughout the forecast period.

Ceramics is the material of choice for non-hermetic and hermetic packages requiring high-temperature stability, thermal conductivity, smoothness, and good planarity. In addition, it is an excellent insulator. This material is used as a dielectric in semiconductor components to create inductors and capacitors within the package. Ceramic packaging for semiconductors is suitable for defense applications. Consequently, it is anticipated that the increase in demand for ceramic semiconductor packaging will fuel market statistics during the forecast period.

Competition to Intensify During the Forecast Period

In the fragmented global business, a large number of dominant players control the majority of the market share. Following market trends for high-reliability semiconductors, key players are creating innovative products for their customers.

Additionally, high-reliability semiconductor companies engage in mergers and acquisitions for revenue gains.

Click here to read the full report titled "High-Reliability Semiconductors Market Size and Forecasts, 2023 To 2031".