The Middle East and Africa micro component semiconductor market is estimated to be valued at 379.585 million in 2020.
Factors such as the increasing adoption of consumer electronic devices, the emergence of AI, IoT, and ML and growing demand for faster and advanced memory chips in various industrial applications, along with growing demand for LEDs and OLEDs, are anticipated to drive the market growth during the forecast period. The market is segmented into two types: by type and by industry vertical.
MEA Micro component Semiconductor Market Drivers:
Many leading consumer electronic brands are making huge investments in technology to introduce new devices to meet the increased demand for advanced devices, which is driving the overall market growth. The rising adoption of advanced technologies such as ADAS, connected cars, electrification, artificial intelligence, and human-machine interface in the automotive sector is expected to increase the demand for micro-component semiconductors, which in turn is anticipated to drive the overall market growth. Furthermore, the rising adoption of electric vehicles in Gulf countries like Dubai is anticipated to drive the market growth in the coming years. For instance, the government of the UAE is targeting 42K electric cars on the roads in the coming years. Moreover, favourable government policies and incentives offer new opportunities for key players in the market to introduce advanced features or devices in electric vehicles.
One of the prime reasons supporting the market growth is the rising adoption of new technologies like OLED, LEDs, and LCDs across the region. Increasing demand for these technologies is expected to drive the overall market growth. The rising adoption of OLED technology positively contributes to the overall market growth, OELD technology improves the picture quality of the screen and helps in innovating the display presentations, which attracts more attention from customers. Rising demand for LCDs and LEDs is contributing significantly to overall market growth.
Covid-19 Insights
The COVID-19 pandemic has slowed down the growth of the market. During the pandemic, there was a shortage of semiconductors because of which many countries across the region faced significant demand and supply imbalances. All the manufacturing facilities were completely shut down and all the plans related to the manufacturing of new components were delayed which has impacted the overall market growth. However, the market is surging with rapid innovation and investments in consumer electronics and the automotive industry across the region.
Market Segmentation
The market has been analysed through the following segments: