Top 5 Key Sectoral Trends in the Semiconductor Market to Watch in 2023

Introduction: Leading research firm Canalys has released a new report on the top 5 key areas of interest in the semiconductor market in 2023, including the following: 1. 15% of all laptops shipped in 2023 will be ARM-based; 4. Asia will enter the decade of India; and 5.

Shipments of 5G-enabled PCs and tablets will grow 25% in 2023

In the third quarter of 2022, 5G-enabled devices accounted for 24 percent of overall connected PC and tablet shipments, up from 2 percent a year ago. overall connected PCs grew by 4 percent in the third quarter of 2022, but 5G penetration on PCs increased. this trend will accelerate in 2023 as 5G infrastructure improves, suppliers expand device offerings, and carriers increase support.

Leading PC vendors are now entering this space. Meanwhile, Intel Corporation, MediaTek and Qualcomm are increasingly focused on 5G devices, helping to create a roadmap for the design and marketing of 5G devices. Continued carrier adoption will be a key factor in the growth of connected PCs in 2023.

The emergence of remote and hybrid work will create ample business opportunities for 5G PCs in 2023 and beyond. When it comes time to refresh devices, employees will seek mobile connectivity options. Employers will look for ways to address the security threats posed by public and unsecured Wi-Fi networks.

60 percent of total smartphone shipments will be 5G-enabled by 2023

2022 will be a difficult year for 5G. Macroeconomic headwinds and inflationary conditions have led to a shift in consumer demand away from 5G and toward more practical smartphones, such as those involving battery life, storage, processor speed and camera quality. In addition, 5G deployments have stalled and many carriers are making structural changes aimed at expanding their user base and maintaining financial stability rather than deploying 5G.

2023 will be different. The overall macroeconomic picture is expected to improve and the global economy is expected to recover. Network operators will be more aggressive than ever, both in driving 5G deployment and in expanding their 5G user base. Smartphone vendors such as Samsung Mobile and Apple are expected to be the first to launch 5G-enabled devices.

The average price of 5G devices is expected to fall, bringing 5G to the masses, a core driver in price-sensitive developing regions.

15% of all laptops shipped in 2023 will be ARM-based

This percentage will continue to rise from around 10% in 2022, and will increase significantly from 2% in 2020. Apple's own chip transformation is driving this growth, and it is expected to continue to account for the majority of ARM-based shipments in 2023.

Nonetheless, Canalys expects the architecture to accelerate its success on Windows devices starting next year. Recent devices from Lenovo and HP help highlight the benefits of ARM-based PCs, including better battery life, 5G/LTE options, and thin and light designs. These features are consistent with post-pandemic consumer behavior as they use their notebooks more frequently, for longer durations and in more diverse locations.

With Microsoft and Qualcomm also significantly improving the user experience and application compatibility of ARM for Windows, the stage is now set for more PC vendors to join and expand their offerings. CES 2023 is an opportunity for the market to have a difficult year in the face of increasing economic uncertainty, which will drive the messaging of ARM-based PCs and fuel consumer enthusiasm.

Asia is entering the Indian decade

Despite the worsening global economy, the Asia Pacific region is expected to grow in 2023. The two fastest growing major economies in the Asia-Pacific region are currently ASEAN and India. Historically, China has been the fastest growing country, but growth has been slowing and the economy has faced a number of challenges since the outbreak of the new crown outbreak. This presents an opportunity for other economies to surpass and become the drivers of development in the Asia Pacific region.

Bureaucracy, infrastructure, and climate change will continue to be challenges. Building India will take time, effort, and resources. But there are many positive trends in India: the government is focusing heavily on manufacturing, the highly skilled and young workforce is growing, digitization is at an all-time high, many foreign entities are providing capital to India, and investment in India is not likely to stop anytime soon.

Consumers will drive automakers to a circle economy

Sustainability and the promotion of the loop economy will be key themes presented by automotive OEMs at the 2023 Consumer Electronics Show. More and more consumers will be looking for recyclable materials and zero emissions in their next vehicle.

The automotive industry must keep as many vehicle raw materials in circulation as possible beyond the average vehicle life of 12 to 15 years. This is a challenge the industry has been meeting for years, and OEMs and supply chains have set goals to achieve 100 percent sustainable materials in vehicles and to meet international recycling standards.

However, Canalys estimates that by early 2023, there will be more than 1.3 billion cars and light commercial vehicles in use worldwide. Therefore, despite the importance of recyclable materials, lightweight vehicle construction, new production methods, electrification, software definitions and the addition of common platforms in new vehicles, it will take many years to replace the vehicles currently in use that lack all of these features. Not helped by adverse market conditions.

According to Canalys estimates, global light vehicle sales peaked in 2017 and will not even return to pre-pandemic levels for the next three years.