According to the latest market research report by Technavio, the global semiconductor capital equipment market is expected to reach $47.34 billion mark by 2020.

In this report, Technavio covers the present scenario and growth prospects of the global semiconductor capital equipment market education market for 2016-2020. To calculate the market size, the report considers the revenue generated from each equipment of the semiconductor production process.

The electrification and automation of automobiles have led to the increasing need for semiconductor wafers. Different types of semiconductor ICs are used in a number of automotive products like navigation control, infotainment systems and collision detection systems. There is also a growing demand for hybrid and electric vehicles (HEVs) with increased environmental awareness and emissions legislations. The demand for driverless and smart cars will generate demand for advanced sensors over the next four years.

“With advances like the emergence of 3D and ultra-high definition (UHD) TVs and hybrid laptops in the consumer electronics sector, the demand for semiconductor ICs will further increase during the forecast period. This rise in demand for semiconductor ICs will, in turn, generate demand for semiconductor devices,” said Asif Gani, one of Technavio’s lead industry analysts for semiconductor equipment.

“Technavio researchers expect the semiconductor market to grow at a CAGR of 6.42% during the forecast period. The increase in sales of microelectronics and consumer electronic devices is anticipated to support the growth of the semiconductor market,” added Asif.