Middle East and Africa Logic Semiconductor Market - Forecasts from 2022 to 2027

The Middle East and Africa logic semiconductor market are projected to grow at a CAGR of 2.18% during the forecast period to reach US$2.701 billion by 2027, from US$2.322 billion in 2020. Logic semiconductors are primarily used to assess, monitor, and control electronic devices' operations by processing digital data. Small microelectronic circuits, also known as logic gates, are generally used to construct digital circuits to produce combinational logic. Such logic chips could be found in almost all digital products, like mobiles and arithmetic logic units. Logic semiconductors are heavily used in the automotive, communication, consumer electronics, and manufacturing industries. The logic semiconductor market growth depends on such industries. The increase in the trend of digitalization, and the advent of 5G, AI, and IoT are anticipated to further augment the industry's growth in the forecasted period.



Changing Trends - Increasing use of electronic devices with ALUs is expected to propel the logic semiconductor market.

In recent years, the consumer electronics industry has been steadily expanding and evolving in the last few years. Growing income, advancing technologies, and better Internet connectivity are responsible for increasing the penetration of electronic devices in the industry. This increasing demand is bound to impact the market size positively. Consumer electronics are being extensively used in several fields, from laptops, mobiles, ear pods, smartwatches, and smartphones to smart household devices such as washing machines, air conditioners, and many more.

It is indisputable that cyber-physical systems and IoTs blur the boundaries between the digital and physical worlds. The advent of autonomous vehicles, medical systems, robotics, and smart grids has drastically changed the lifestyles of many worldwide. The emergence of 5G has further resulted in the adoption of smartphones and devices enabled with 5G, expanding the semiconductor market size. In 2019, Saudi Arabia adopted and increased the number of areas with rapid internet speed and 5G embedded mobile technologies in its pursuit to expand digital infrastructure in collaboration with private countries. Furthermore, according to the International Trade Administration, Saudi Arabia ranks fourth in 5G penetration, with over 6,500 towers. In Africa as well, 5G is penetrating into the region slowly but surely.

The digital growth and technological advancements in Saudi Arabia are expected to propel the growth of logic semiconductors in the region.

As the semiconductor industry is entering into a new growth cycle, fuelled by automation, in-vehicle electronics,  artificial intelligence and IoT devices, cloud processing, and 5G, making the planet more sustainable and smarter, several companies are moving up a gear by formulating and deploying several strategies. Similar market growth was observed in Saudi Arabia. Arabia’s MICT (Ministry of Communications and Information Technology) aims to create a cutting-edge and robust digital architecture, supporting Vision 30’s goal. Vision 30 aims to digitally transform the country by 2023, with a 50% increase in the Information and Communications Technology (ICT) sector and a 50% increase in employment. Furthermore, the government is also currently in the process of developing sixteen smart cities, with the aim of becoming the world’s most digitized and connected nation by 2030. According to the MICT, the government has already invested $ 4 billion and $1.3 billion in IoT. According to the Saudi Data and AI Authority (SDAIA), the current value of this sector in Saudi Arabia is estimated to be between $4 and $6 billion, with a projected growth to more than $100 billion by 2030.  Moreover, Saudi Arabia is also one of the largest consumer electronic markets among the GCC countries. The developments initiated by the government have further attracted various companies to invest in the country. For instance, in December 2021, the world’s biggest oil producer, Saudi Aramco, and Advanced Electronics Company, based in Riyadh, entered into a partnership to develop the country’s digital ecosystem, accelerating the localization of digital businesses. Also, during the same month, a digital transformation company, Sutherland Global, announced its collaboration with Aramco to develop, design, and implement digital infrastructure in the country. This collaboration is also said to boost the local economy, creating 50,000 jobs. Similar growth and developments in the region are expected to drive the semiconductor market in the country.

COVID-19 Insights

The outbreak of COVID-19 has negatively disrupted the semiconductor market and the country's overall economy. The decrease in staffing and transport restrictions, such as decreased availability of air transport and strict border controls, impacted several companies' ability to meet the delivery deadlines and saw decreased and canceled orders. The lack of human resources further slowed down several companies' strategic plans. At the same time, social distancing and several other factors slowed down the companies' efficiency. Overall spending in the consumer electronics industry in Saudi Arabia saw a decrease of 2.4% in 2020 due to the global pandemic. 

Market Segmentation:

By Type

• Special Purpose Logic
• Display Drivers
• General Purpose Logic
• Application Specific Integrated Circuit
• Programmable Logic Device

By Industry Vertical

• Communication
• Consumer Electronics
• Automotive
• Manufacturing

By Countries

• Saudi Arabia
• UAE
• Others