The semiconductor market is forecast to grow by 17.3 percent in 2021 versus 10.8 percent in 2020, IDC said.
Growth in the global semiconductor market is driven by mobile phones, notebooks, servers, automotive, smart home, gaming, wearables, and Wi-Fi access points, with increased memory pricing. IC shortages are also expected to continue easing through 4Q21 as capacity additions accelerate.

“The semiconductor content story is intact and not only does it benefit the semiconductor companies, but the unit volume growth in many of the markets that they serve will also continue to drive very good growth for the semiconductor market,” says Mario Morales, Group Vice President, Enabling Technologies and Semiconductors at IDC.

5G semiconductor revenues will increase by 128 percent, with total mobile phone semiconductors expected to grow by 28.5 percent. Game consoles, smart home, and wearables will grow +34 percent, 20 percent, 21 percent respectively.

Automotive semiconductor revenues will also increase by 22.8 percent as shortages are mitigated by year end. Notebook semiconductor revenues will grow by 11.8 percent, while X86 Server semi revenues will increase by 24.6 percent.

Semiconductor wafer prices increased in 1H21 and IDC expects increases to continue for the rest of 2021 due to material costs and opportunity cost in mature process technologies.

IDC predicts the semiconductor market to reach $600 billion by 2025 – representing a CAGR of 5.3 percent through the forecast period.