The RF power semiconductor market will grow from $10.57bn in 2015 to $31.26bn in 2022, rising at a compound annual growth rate (CAGR) of 15.4% between 2016 and 2022, forecasts the firm MarketsandMarkets.
According to the report 'RF Power Semiconductor Market by Product, Material, Frequency, Application, and Geography - Global Forecast to 2022', manufacturers have seen increased shipments of devices for applications such as aerospace & defense, medical, consumer, automotive, telecommunications and data communications.
RF power amplifiers to play a key role in the RF power semiconductor market
RF power amplifiers held the largest share of the RF power semiconductor market in 2015 and - due to increasing adoption worldwide and driven by the growing preference for wireless connectivity - are expected to dominate the market between 2016 and 2022. Other devices such as RF duplexers and RF switches are also expected to see high growth.
The use of power amplifiers is increasing with the growing demand for smartphones and the need for higher data rates in LTE (long-term evolution) and 5G in the near future. The transition to LTE requires significant investment as the core networks also need to change for upgrade of the wireless standard, which is also driving demand for RF power devices.
Consumer sector largest, but aerospace & defense growing fastest
Driven by the growing use of smartphones and demand for faster data rates (particularly LTE), consumer applications are expected to hold the largest market share by application, and to dominate the RF power semiconductor market between 2016 and 2022.
However, aerospace & defense applications are expected to grow fastest during the forecast period due to increasing demand from defense equipment manufacturers for RF power semiconductor devices in avionics and radar systems. Growth in the production of defense equipment worldwide is due to increased investment in the defense sector, notes the report.
APAC to hold largest market share and grow fastest
The Asia-Pacific (APAC) is expected to hold the largest market share by geographic region, and to dominate the RF power semiconductor market between 2016 and 2022, presenting huge growth opportunities for companies operating worldwide due to the increasing number of consumers using smartphones. The main driving factors for the APAC region's growth are its established electronics industry, the adoption of innovative technologies, and the low manufacturing and development costs in countries such as Taiwan, Malaysia and China. The APAC market is expected to grow at a high rate in consumer, telecom, datacom and medical sectors. The increasing number of players in the region is further expected to drive growth.
The North America region was the second-largest market in 2015 and has a steady growth rate. Despite being a mature market, growth is highly sustainable because of the presence of a large number of manufacturers in the region, notes the report.
Key players in the RF power semiconductor market are listed as Infineon Technologies AG (Germany), M/A-COM Technology Solutions Holdings Inc (USA), NXP Semiconductors N.V. (The Netherlands), Qorvo Inc (USA), Broadcom Ltd (USA), Toshiba Corp (Japan), Qualcomm Inc (USA), Skyworks Solutions Inc (USA), Mitsubishi Electric Corp (Japan), and Murata Manufacturing Co Ltd (Japan).
The report cautions that the RF power semiconductor market is a highly fragmented market, which reduces the price margin of RF device suppliers. Also, the increase in cost of RF devices with performance improvement is another restraint.
