Healthcare Semiconductor Market Size, By Component (Integrated Circuits (ICs), Sensors, Discrete Components, Optoelectronics), By Application (Medical Imaging, Patient Monitoring, Diagnostic Equipment, Wearables), Forecast 2024 - 2032

Healthcare Semiconductor Market Size, By Component (Integrated Circuits (ICs), Sensors, Discrete Components, Optoelectronics), By Application (Medical Imaging, Patient Monitoring, Diagnostic Equipment, Wearables), Forecast 2024 - 2032

Healthcare Semiconductor Market size is set to expand at over 9.5% CAGR between 2024 and 2032 due to the accelerated adoption of remote monitoring and telehealth solutions.

The increasing demand for semiconductor-enabled devices in remote patient monitoring systems and telehealth platforms is gaining significant prominence in modern healthcare. These technologies offer real-time data collection, analysis, and communication for enhancing patient care and reducing the burden on healthcare infrastructure. With the global expansion of telehealth services, the need for advanced semiconductor components is surging, further providing potential growth opportunities to the industry participants. For instance, in July 2023, Ambiq, a semiconductor solutions company, launched two new ultra-low processors, Apollo4 Lite and Apollo4 Blue Lite System-on-Chips (SoCs), for remote healthcare monitoring.

The influx of favorable government policies and incentives for supporting technological advancements and healthcare infrastructure development while boosting semiconductor manufacturing will also support the industry growth through 2032. To cite an instance, the CHIPS Act provides around $53 billion in incentives for semiconductor manufacturing, R&D, and workforce development in the U.S., as well as a 25% tax credit for capital expenditures in semiconductor production.

The healthcare semiconductor industry is segmented into application, component & region.

Based on component, the market value from the optoelectronics segment is anticipated to witness high demand from 2024-2032. Optoelectronics, encompassing technologies like LEDs, photodiodes, and optical sensors, play a pivotal role in medical devices and diagnostics. The increasing demand for miniaturized energy-efficient and high-performance components in healthcare applications is driving the adoption of optoelectronic semiconductors. The extensive use of these components in medical imaging, biosensors, and monitoring devices coupled with the continuous development of innovative healthcare solutions, such as wearable health tech and point-of-care devices will foster the segment growth.

In terms of application, the healthcare semiconductor market from the wearables segment is slated to depict considerable growth through 2032. Wearable health technologies, encompassing devices like fitness trackers, smartwatches, and health monitoring wearables, rely heavily on semiconductor components for efficient functionality. The integration of advanced sensors, processors, and connectivity features in wearables helps enhance their capability to monitor vital signs, track health metrics, and facilitate real-time data analysis. The global population is also increasingly adopting wearable health devices for personalized healthcare and preventive monitoring, further propelling the demand for semiconductor solutions.

Regionally, the Asia Pacific healthcare semiconductor industry held a sizable revenue share in 2023 and is set to exhibit robust growth through 2032 fueled by the expanding healthcare infrastructure, rising healthcare awareness, and the surge in demand for advanced medical devices. Several governments and private entities across APAC countries are investing heavily in healthcare technology, propelling the need for semiconductor components in medical applications. For instance, in September 2023, China revealed plans to create a new state-backed investment to raise around $40 billion for its semiconductor production sector. Additionally, the increasing prevalence of chronic diseases and the growing aging population are driving the adoption of sophisticated healthcare solutions that heavily rely on semiconductor technologies, subsequently accelerating the regional market expansion.