What forecast for the semiconductor market in 2022?

One of the latest studies of Gartner looks at the global semiconductor market revenue. Even if it has faced a shortage since the start of the Covid-19 pandemic, many suppliers have had a record year in 2021, like Intel or Texas Instrument.

Semiconductor Shortage Impacts Global Market Revenue

The report offered by Gartner claims that global electronic components market revenue is expected to grow by 13.6% in 2022, causing demand to continue to outstrip supply this year. Nevertheless, this level of growth should not last in 2023 since this increase would fall to 3.6%. Next year, overall supply and demand are expected to stabilize, which explains the decline.

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Even if overall supply and demand will almost return to balance, some sectors will see their demand explode despite the stagnation of their production. This is particularly the case for the automotive market according to Alan Priestley, author of the report and vice president of research at Gartner: Even if motor vehicle production grows less than expected (12.5% ​​in 2022), the average selling price of devices requiring semiconductors should remain high due to the persistence of a tight supply, so that the automotive semiconductor market will maintain double-digit growth (19%) in 2022 “.

The study specifies that this overall balance between supply and demand will be rather carried by the slowdowns in the sale of terminals such as smartphones, computers or servers, greedy in semiconductors. It should be noted that compared to 2021, the growth in market revenues is much lower: it was 26.3% allowing an overall revenue of 550 billion euros. With this year’s increase, global revenues amount to 620 billion euros.

Soaring production of 5G smartphones drives the semiconductor sector

Semiconductor revenues are also expected to be boosted by the increasingly strong deployment of 5G around the world. The production of 5G-enabled smartphones is expected to increase by 45.3%, which would overtake the production of 4G-enabled devices. Of the 808 million smartphones that will be produced this year, 55% will be compatible with the 5G network.

Of course, the production of these smartphones requires a large number of electronic components, such as those dedicated to memory, which will represent the largest share of the total semiconductor market in 2022. While at the beginning of this year, the market was faced with an undersupply situation, it should offer a much larger supply at the end of the year.

In France, several operators have adopted their own strategy to best deploy 5G throughout the country so that their users can finally use their smartphones compatible with this network.