Big Data Analytics in Semiconductor and Electronics Market

Market Overview

The global big data analytics in semiconductor and electronics market size was valued at USD 19,121 million in 2021, envisioned to reach USD 37,822 million advancing at a CAGR of 8.9% during the forecast period.

Big data and business analytics extract useful information from large sets of structured and unstructured data to find previously hidden patterns and analyze information in real time. In addition, analysts and business users have been adopting big data analytics in large numbers to make quick decisions with greater accuracy using data that was unstructured and inaccessible in the past. This is done to improve operational performance and productivity, yield management, and reduce costs in the semiconductor and electronics industries. Consequently, such factors contribute to the expansion of big data analytics in semiconductors and electronics market.

The surge in the deployment of big data analytics software by various organizations worldwide to facilitate enhanced and faster decision-making and to provide a competitive advantage by analyzing and acting upon information on time is a significant factor that is driving the growth of the global big data analytics in the semiconductors and electronics market. In addition, the development of the market is positively affected by the increasing demand for cloud-based big data analytics software. However, expensive implementation costs and a lack of skilled labor impede big data analytics in semiconductor and electronics market expansion.

Market Dynamics

Market Drivers

The Hike in the Deployment of Big Data Analytics Software and Demand for Cloud-Based Big Analytics Software 

The adoption of big data analytics is fueled by many semiconductor and electronics companies' investments in big data and business analytics tools to drive revenue growth and improve service efficiencies. Moreover, senior executives of numerous organizations are increasingly employing various types of analytics to address their business needs due to the growing significance of big data analytics, which drives market expansion. In addition, the semiconductor and electronics industries are utilizing big data and business analytics to enhance predictive maintenance and yield, increase sales, and enhance pricing and market-entry strategies. In addition, firms are embracing big data analytics to improve customer experience, contributing significantly to global market expansion.

In addition, cloud-based big data analytics require minimal maintenance and incur no capital expenditures; therefore, they are ideally suited for medium-sized institutions. In addition, the adoption of cloud-based big data analytics has increased among large and small businesses. These cloud-based big data analytics and security solutions give enterprises superior control over remote access to applications and sensitive data. In addition, the increased availability of inexpensive data centers provided by cloud vendors has reduced the initial investment costs for small and medium-sized businesses, lowering the market entry barrier. This has increased the demand for big data analytics software in the cloud among small and medium-sized enterprises.

Market Restraints

High Cost of Implementation to Hinder Market Growth

Small- and medium-sized businesses cannot provide effective data warehousing due to budget constraints caused by the high cost of implementing big data and business analytics tools, which hinders the market growth. Moreover, big data-related services like consulting, servicing, implementation, integration, and upgradation incur additional costs, which hinder end-users adoption, particularly in parts of Asia and LAMEA. Moreover, the difficulties related to traditional and sophisticated system integration have restrained the expansion of the market, particularly among SMBs. In addition, avoiding the cost factor required to enforce big data initiatives and analytical models is a significant factor that inhibits the market's growth to some degree.

Market Opportunities

The Trending Social Media Analytics to Spur Market Opportunities

Electronics device manufacturers (EDMs) are in high demand for big data analytics as they seek to utilize information assets to enhance client relationships, business results, and operational efficiency. However, keeping up with users' shifting demands and expectations has become more challenging. In contrast, it is anticipated that emerging trends in big data analytics, such as social media analytics and text analytics, will create numerous opportunities in this market. Social media sentiment analysis can assist EDMs in identifying key problem areas, developing product blueprints to produce new revenue streams, and modifying online marketing strategies in response to positive and negative customer reactions. In addition, the increasing use of mobile phones and tablets with internet access, as well as the ever-increasing user volume on social media platforms, fuels the demand for social media analytics tools, which is assumed to provide a lucrative opportunity for the growth of the big data analytics in semiconductor and electronics market.

Regional Analysis

The region-wise segmentation of the global big data analytics in semiconductor & electronics market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America Will Dominate the Regional Market

The Asia Pacific is most likely to expand at a CAGR of 9.5% and command the market. The strong presence of electronics and semiconductor manufacturing companies in China, Japan, and India drives the market growth in this region. In addition, the popularization of emerging technologies by various businesses and the industrial sector, as well as the rising adoption of smart manufacturing, drive the expansion of this market. The popularity of big data analytics solutions and services is increasing throughout Asia-Pacific due to the massive shift toward digitization and the generation of vast volumes of data. 

In addition, authorities in Asia-Pacific nations are actively investing in solutions and services for big data analytics, which is anticipated to contribute to the market's growth significantly. In addition, an increase in big data analytics managed services and cloud delivery, as well as a rise in the adoption of predictive and prescriptive analytics due to their ability to facilitate real-time business decisions, contribute to the expansion of the market. In addition, as the market for big data and analytics matures, the focus on cloud-based delivery of business analytics services, security analytics services, and predictive analytics is anticipated to increase, thereby creating lucrative opportunities for market growth over the forecast period.

North America will hold a share of USD 12,855 million, growing at a CAGR of 8.9%. Consumer electronics and semiconductors' spending on data analysis and visualization technologies drives market expansion. In addition, the region is anticipated to experience significant growth during the forecast period due to its supremacy with sustainable and well-established markets, which facilitate spending on research and development activities in innovative semiconductor & electronics manufacturing, thus leading to the improvement and innovation of new technologies. The increased popularity of smartphones, wearable devices, and other smart connected equipment is another major factor pushing the expansion of the North American market.

In addition, the increment in demand for digital transformation across various industry verticals and the rise in the convergence of multiple technologies, like big data & analytics, and artificial intelligence, has affected the region and increased the IT budget. In addition, the need to manage massive volumes of data generated by organizations due to technological developments in collecting data, visualization, and analytics fuels the growth of the big data analytics market in semiconductors and electronics.

Segmental Analysis

The worldwide big data analytics in semiconductor & electronics market is classified based on component, end-user, analytics tool, application, and region.

By Components Analysis

Segmentation based on components includes software and services.

The software segment is projected to expand at a CAGR of 8% and will hold the largest share. The software segment consists of various software and platforms for storing, managing, and analyzing valuable data extracted from large amounts of data. Companies primarily focus on generating new growth and revenue opportunities, increasing the demand for big data analytics across industries. In addition, market leaders are adopting various strategies to enhance their brand portfolio, which is expected to propel big data analytics in semiconductor and electronics market share expansion.

The service segment will hold the second-largest share. The implementation of services ensures the efficient operation of the big data and business analytics software with complete transparency and control. The big data and business analytics services include professional and managed services. End-user adoption of services has increased, as this service ensures the proper operation of software and platforms throughout the entire process. In addition, the increase in demand for cloud-based big data analytics services is expected to generate lucrative growth prospects for the market during the forecast period.

By End-User Analysis

Segmentation based on end-user includes semiconductors and electronics.

The electronics segment is anticipated rise at a CAGR of7.9% and will hold the largest market share. As a result of the extensive competition in the electronics sector, providers of electronics manufacturing services (EMS) are adopting increasingly sophisticated and strategic business models. These include a better understanding of customer needs, the business models of customers or original equipment manufacturers (OEMs), effective communication tools, the creation of global footprints, and a focus on core competencies, all of which have pushed electronic companies to implement big data and business analytics.

The semiconductor segment will hold the second-largest share. Semiconductor companies have had an impact on data generation and analysis. Few companies have successfully applied big data analytics to fab operations, where they could improve predictive maintenance and yield, advance R&D, sales, and marketing for enhanced pricing, market entry strategies, workforce productivity, cross-selling, and portfolio optimization. With the advent of cloud computing, the infrastructure for computing power and data storage has become significantly more straightforward. With big data analytics tools, semiconductor companies can incorporate data into actionable models, driving market growth.

By Analytics Tools Analysis

Segmentation based on analytics tools includes dashboard & data visualization, self-service tools, data mining & warehousing, reporting, and others.

The reporting tool segment is anticipated to advance at a CAGR of 10.7% and hold the largest share. Reporting analytics tools assist organizations in extracting and presenting data in charts, tables, and other visualizations, allowing businesses to discover helpful information within the extracted data. Firms are embracing reporting tools to monitor their cash flows and exchanges, perform calculations, and produce reports. In addition, the primary factors driving the demand for reporting tools are the increase in the complexity and size of financial data, the restricted functionalities of existing spreadsheet solutions, and an increase in the cost of compliance. 

The dashboard & data visualization tool segment will hold the second-largest share. Dashboard and data visualization tools are utilized for the graphical representation of data and information through maps, graphs, and charts. Organizations are investing heavily in dashboard and data visualization tools to manage various unstructured information generated and left unused, thereby driving demand for data visualization tools. Moreover, data visualization facilitates the extraction of reports from a dynamic and rapidly expanding volume of business data.

By Application Analysis

Segmentation based on application includes customer analytics, supply chain analytics, marketing analytics, pricing analytics, workforce analytics, and others.

The supply chain analytics segment will likely have the largest share growing at a CAGR of 10.2%. By enabling data-driven decisions at the strategic, operational, and tactical levels, supply chain analytics boosts operational efficiency and effectiveness. The analytics of the supply chain guarantee optimized inventory, enhanced operations, and streamlined procurement. In addition, it improves vendor turnaround time, warranty, and contract management, resulting in overall performance improvements for organizations.

The customer analytics segment will hold the second-largest share. Customer analytics is a customer-centric way of managing business decisions based on customer data and behavior analysis. Major market participants, particularly in the electronics industry, emphasize customer analytics to understand consumer demand and preferences more deeply. Increased enterprise competition to provide superior and innovative products and a customized user experience drives the deployment of customer analytics software.

Recent Developments

• In 2022, Amazon Web Services launched the Amazon EC2 C7g, i.e., Amazon Elastic Compute Cloud.
• In 2022, Onto innovation Inc. announced the EB40 all-surface inspection module for wafer fabs and advanced packaging.