IDC's SAF report on global semiconductor applications recently released shows that global semiconductor revenue will reach 450 billion US dollars in 2018, an increase of 7.7% compared to 2017, achieving steady growth for three consecutive years.
The SAF report also predicts that the composite annual growth rate (CAGR) of semiconductor revenue for 2017-2022 will be 2.9%, and it will reach 482 billion US dollars by 2022.
Due to strong demand, limited supply and limited product structure, the entire memory market became a major highlight last year. The DRAM and NAND memory markets have grown to $73 billion and $49 billion, respectively, and the year-on-year growth rates in 2017 were 77% and 52%, respectively.
Excluding DRAM and NAND, the overall semiconductor market grew by 12% year-on-year. By 2018, non-memory semiconductors are expected to grow by 11 billion U.S. dollars to 312 billion U.S. dollars. DRAM and NAND will continue to grow this year, but it is expected to decline from 2019-2021 and then pick up slightly in 2022.
The powerful memory market has enabled Samsung Electronics to seize the position of top semiconductor manufacturers from Intel and enhance the image of leading memory manufacturers. These manufacturers currently account for three of the top five semiconductor companies, compared with only two last year. The overall market income concentration continues to rise. The top ten companies accounted for 60% of the semiconductor market, compared with 56% in 2016 and 53% in 2015.
"Over the past five years, the semiconductor industry's market integration continues to affect the semiconductor supplier's competitive landscape, because each company is constantly improving its core market and making acquisitions to find emerging growth areas. With machine learning and autonomous systems Development, machine learning and autonomous systems can realize a more diversified architecture to meet future opportunities, which will promote the development of semiconductor technology in the next decade, said Mario Morales, vice president of IDC Semiconductor's project.
Throughout the forecast period, the automotive market and industrial market will continue to be the main growth areas for the semiconductor market, with CAGR of 9.6% and 6.8% for 2017-2022. "Electrification, connectivity and infotainment systems, Advanced Driver Assistance Systems (ADAS), and key elements of autonomous driving capabilities will continue to drive the growth of semiconductor content on a per-vehicle basis," said Nina Turner, research manager at IDC Semiconductor.
Other important highlights of IDC Semiconductor Application Predictors (excluding memory) include:
In the computer industry, semiconductor revenue will decline by 4.0% this year, and the compound annual growth rate for the 2017-2022 forecast period will be -0.7%. The two bright spots in the computing field are computing SSDs and enterprise SSDs, which are expected to achieve double-digit growth in 2017-2022, with a compound growth rate of 9.8%.
This year, semiconductor revenue in mobile wireless communications will increase by 5.5% year-on-year, and the CAGR of 2017-2022 will be 5.8%. In 2018, the semiconductor revenue of 4G mobile phones will increase at a rate of 10.9% per annum, and the CAGR of 2017-2022 will be 3.1%. As technology becomes mainstream in the next decade, 5G will also drive the growth of revenue in the forecast period.
It is estimated that the compound annual growth rate of communication infrastructure semiconductors for 2017-2022 will reach 1.7%, of which the growth of consumer networks will be the strongest. Over 65 device applications (terminal devices); 19 semiconductor device areas; 4 geographic regions; 7 industry segments (vertical)