IDC warns of significant shrinkage to semiconductor market with Covid-19 pandemic

IDC warns of significant shrinkage to semiconductor market with Covid-19 pandemic
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IDC has offered a gloomy analysis of the semiconductor market amid the Covid-19 pandemic, suggesting significant shrinkage compared with the earlier expected minor overall growth.

In its latest report, titled Impact of COVID-19 on the Worldwide Semiconductor Market Forecast, IDC notes that despite the disruption, to human life as well as the international technology supply chain, the report states that there is still a one-in-five chance that the market would bounce back from the contagion in 2020.

The most probable results for this event would be a year-over-year revenue loss of 6% for the worldwide semiconductor market in 2020, says IDC, giving the scenario a probability of 54%. The entire semiconductor segment is likely to see a loss of $25.8b and the effect will be felt throughout the year. According to the market researcher, the demand for systems and availability of components would be at their lowest for some time, but will gradually start recovering once the outbreak is in control.

In January, a BIS Research report stated that the worldwide IoT chip market, which was valued at $9.40b in 2019, is forecasted to increase more than $38.61bn at a CAGR of 15.8% by 2029. The report stated that the overall market demand for IoT chips is driven by the rising adoption rate of IoT-based devices and declining cost of IoT sensors.

A Gartner report in its preliminary results has reported a 11.9% decline in the revenue of worldwide semiconductor market to $418.3bn in 2019, which exceeded the analyst firm’s already gloomy forecast from earlier in the year. According to the report, Intel has regained its position as the number one global semiconductor vendor by revenue in 2019, beating Samsung Electronics which held the top position in 2017 and 2018.

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