According to a new market research report published by Credence Research “Global Semiconductor Assembly and Testing Services (SATS) Market (Component (Services, Solutions); Application (Communications, Computing & Network, Consumer Electronics, Industrial, Automotive Electronics, Others)) – Growth, Future Prospects and Competitive Analysis,2019 – 2027”,the overall semiconductor assembly and testing services (SATS) market value worldwide reached US$28.90 Bn in 2018 and is set to grow with a CAGR of 5.3% during the forecast period.
The rising demand for semiconductor devices from various industries is increasing with the years due to the development and advancement of new technologies. The companies are focusing on the development of new testing technologies for finalizing the products. The growing demand for smartphones globally is considered to drive the SATS market. The companies are focusing on the development of small size devices with small chipsets. Moreover, various companies are outsourcing semiconductor testing, assembly and packaging services to various third party vendors which are also known as outsourced semiconductor assembly and testing services (OSATS) providers.
Based on applications, the semiconductor assembly and testing services (SATS) market have been segmented as communications, computing & networking, consumer electronics, industrial, automotive electronics, others. The communications segment was the dominating segment in 2018 with a market share of more than 20.0% and are expected to dominate the market during the forecast period. The development of 5G networks and increasing demand for reliable networks and systems for communication are considered as some of the major factors driving the market globally. Similarly, the increasing demand for connected devices and IoT devices is also driving the SATS market.
North America accounted for the second largest market share for the SATS market due to the rising demand for various connected devices by the consumers and companies in the region. The region is expected to grow with a CAGR of 4.50% during the forecast period. Based on the country the region has been segmented as the US and Canada. The US accounts for the largest market share in the region due to the presence of mobile companies such as Apple Inc., Motorola, and others. Additionally, the increasing adoption of IoT devices is also fuelling the growth of the market.
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