RF Semiconductor Market To Reach $5.0 billion by 2030

By Anany Joshi

18 Articles

The radiofrequency (RF) semiconductor market is expected to witness a CAGR of 8.8% during the forecast period (2020–2030) due to the widescale adoption of mobile communication technologies such as 4G and 5G and growing application of the internet of things (IoT). The market stood at $2.1 billion in 2019, and it is expected to reach $5.0 billion by 2030. Further, the integration of artificial intelligence (AI) is boosting the market, by optimizing the RF parameters and decreasing the design complexities of RF semiconductor devices.

One of the key factors supporting the RF semiconductor market is the soaring demand for smartphones in developed as well as developing nations, including Indonesia, Pakistan, China, Nigeria, and India. The rapid urbanization and increasing disposable income of the middle-class population are fueling the adoption of smartphones in developing countries. Therefore, the rising production of smartphones to cater to the surging requirement for them in emerging economies will escalate the demand for RF semiconductors during the forecast period.

Read More: RF Semiconductor Market Analysis and Demand Forecast Report

Additionally, the adoption of IoT is driving the demand for RF semiconductor devices. The widespread integration of the IoT technology requires robust network capacity, for which embedding efficient RF semiconductors in devices is imperative. IoT helps in building an interconnected framework of physical objects, such as smart TVs, washing machines, lights, and air conditioners, by utilizing secure networks that use RF technologies. Smart home devices use RF-semiconductor-embedded transceivers to connect with the internet, by using Wi-Fi or Bluetooth. Besides, the installation of RF technology-enabled smart devices is spurring in smart cities worldwide.

The frequency band segment of the RF semiconductor market is categorized into very-high-frequency (VHF) & ultra-high-frequency (UHF), super-high-frequency (SHF), and extremely high-frequency (EHF). Amongst these, the SHF category accounted for the largest market share in 2019 due to the rapid deployment of SHF RF semiconductors for telecommunication and wireless communication applications. Moreover, the increasing product launches and adoption of the 5G technology by the key market players are expected to supplement the demand for SHF RF semiconductors in the foreseeable future.

In 2019, Asia-Pacific (APAC) dominated the RF semiconductor market, and it is expected to be the leader during the forecast period too. This would be due to the escalating demand for 5G connectivity and smartphones in countries such as China, South Korea, and Japan. Among these, China is emerging as the largest contributor to the APAC market due to the widescale deployment of the 5G technology under the government initiative of 'Made in China 2025'. China is integrating the 5G technology to achieve its ambition of becoming a world leader in new-age technologies, including cloud computing, AI, and industrial IoT.

During the forecast period, the North American RF semiconductor market is expected to demonstrate the fastest growth, as it is projected that the 5G network would cover around half the region by 2030. Additionally, the heavy investments by mobile operators in IoT applications, 5G services, and content and media capabilities are boosting the market growth. Moreover, the upgradation of large and ultra-large data centers from 10G transceivers to novel 40G and 100G transceivers, to increase the digital transmission speed, is stimulating the market growth.

Thus, the increasing adoption of new-age technologies, such as 5G IoT, and AI, and penetration of smartphones will drive the market growth in the coming years.