Report : Semiconductor Bonding Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type (Die Bonder, Wafer Bonder, and Flip Chip Bonder) and Technology (RF Devices, MEMS and Sensors, LED, CMOS Image Sensors, and 3D NAND)
According to our latest market study, titled "Semiconductor Bonding Market Forecast to 2028 -Global Analysis - by Type and Application," the market is expected to grow from US$ 669.48 million in 2022 to reach US$ 1,076.82 million by 2028; it is anticipated to grow at a CAGR of 8.2% from 2022 to 2028.
Foreign investments in the semiconductor industry are being directed towards developing economies in South America and the Middle East & Africa, including Brazil, Argentina, and Saudi Arabia, which is anticipated to propel the growth of the semiconductor bonding market. Additionally, various semiconductor manufacturers in Asia Pacific are planning to establish production facilities in the developing countries of South America due to promising growth prospects. In the MEA region, the UAE, Saudi Arabia, Kuwait, and Qatar are spearheading technological investments and commercial deployments of 5G networks through strategic partnerships between telecommunication service providers and network infrastructure providers. According to the MEA semiconductor bonding market analysis, the adoption of 5G technology will drive the growth of the semiconductor bonding market. The expanding 5G network will facilitate the adoption of smart devices such as smartphones and wearables, ultimately boosting the demand for semiconductor bonding solutions.
The Middle East & Africa's semiconductor bonding market size is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa. In 2020, Saudi Arabia exported semiconductor devices worth US$ 3.16 million and imported devices worth US$ 54.7 million, ranking 66th and 63rd, respectively, in the world for semiconductor device exports and imports. The LED lighting industry has witnessed an increased usage of semiconductor bonding equipment. According to the International Energy Agency (IEA), smart lighting systems can save approximately 35% of the energy associated with conventional lighting systems. Lighting is the largest consumer of electricity in commercial, residential, and industrial sectors, accounting for 15% of the total electricity consumption and 5% of the total greenhouse gas emissions in the region. The implementation of LEDs can reduce these figures. The demand for LED lighting in Saudi Arabia is projected to rise as electricity consumption is expected to increase by over 50% in the next 20-25 years. Developments in the LED sector will boost the overall automotive sector, which is expected to fuel the growth of the semiconductor bonding market in the Middle East & Africa.
Impact of COVID-19 Pandemic on Semiconductor Bonding Market
The COVID-19 pandemic has caused a significant slowdown in the production of electronics and automobiles, leading to disruptions in the supply chain and reduced demand for semiconductor chips. Countries like Saudi Arabia, South Africa, and the UAE heavily rely on imports of semiconductors from China, Japan, and South Korea, contributing to approximately 60% of the automotive market. Due to COVID-19, the automotive industry revenue in GCC countries has decreased, and there has been a significant decline in car sales in March 2020. Before the pandemic, the demand for luxurious cars was high in the Middle East & Africa, primarily due to the presence of high-net-worth individuals. However, the pandemic has resulted in low demand for such cars, which may adversely affect the growth of the semiconductor bonding market in the region.
Key Findings of Semiconductor Bonding Market Study
The UAE boasts the largest automotive market in the Middle East & Africa, with Dubai serving as a key hub for the exports and re-exports of vehicles across the region. The country's advanced infrastructure, business-friendly environment, supportive policies, and available industrial space, along with the existing local demand for luxury vehicles, are all contributing to the growth of the automotive industry. Furthermore, various leading auto manufacturers have established their presence in the UAE, which is leading to an increase in the demand for semiconductors, thus boosting the semiconductor bonding market share on a global level.
The semiconductor bonding market in Saudi Arabia is expected to benefit from the rising demand for consumer electronic devices like smartphones, laptops, and tablets. Additionally, the launch of the Saudi Semiconductor Program by The King Abdulaziz City for Science and Technology in March 2022 is expected to support research, development, and qualification of human resources in the field of designing and localizing electronic chips. As a result, these initiatives are likely to boost the demand for semiconductors and, consequently, the growth of the semiconductor bonding market in Saudi Arabia.
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