Sapphire Substrate Market Developments and Forecast by 2028

The sapphire substrate market is projected to reach US$ 884.26 million by 2028 from US$ 638.83 million in 2022; it is expected to grow at a CAGR of 5.6% from 2022 to 2028.

Consumer electronics brings huge growth opportunities for the sapphire substrate market. Manufacturers of smartphones and other electronics are interested in using sapphire substrates. With the rising demand for global consumer electronics, the manufacturers are focusing on producing the sapphire substrate, which can be used in consumer electronics. Sapphire substrate market players are also focusing on developing colorless sapphire wafers for LEDs as colored sapphire wafers have negative effects. For instance, in April 2022, Saudi Arabian researchers developed single-crystal graphene by insulating substrates on a wafer scale. The researchers find this development important as the field-effect that transistors produced from a sapphire-grown single-crystal graphene monolayer worked excellently.

In recent times, the rich quality colorless sapphire demand has increased by LED manufacturers to manage cost and improve product quality. Thus, adopting colorless sapphire substrate is expected to bring new opportunities for the sapphire substrate market growth during the forecast period. Further, owing to the rising mining activities of large crystals in various countries, the production level of sapphire will also increase. The sapphire will integrate with existing semiconductor manufacturing processes, resulting in an overall cost reduction for the sapphire substrate.

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Sapphire Substrate Market: Strategic Insights

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Impact of COVID-19 Pandemic on Sapphire Substrate Market Size

The COVID-19 pandemic has significantly negatively impacted Europe, indicating that the region’s semiconductor and electronics budget may take a sizeable hit while Europe’s economies recover from the outbreak. Since the COVID-19 outbreak severely impacted overall budgets, many European countries reduced their electronics and semiconductor expenditure. The positive impact on the procurement programs and research & development (R&D) activities is anticipated to significantly affect the sapphire substrate market in Europe in the coming years. The consumer electronics sector in the European Union is anticipated to see the sharpest drop in demand and a wider performance gap over time due to the shifting demand patterns, business shutdowns, unemployment, and unprecedented drops in gross domestic product (GDP) across many countries. The regional automotive & transportation sector is anticipated to grow as the governments will offer incentives to car buyers in the coming years.

Significant initiatives from the governments and leading market players are enabling the EU’s sapphire substrate market to recover from the adverse effects of the COVID-19 pandemic. The EU is seeking to launch itself into the global premier league of semiconductor manufacturing by 2030. Intel aims to build a US$ 20 billion semiconductor factory. Europe has established itself significantly in the semiconductor industry supply chain. However, it lags far behind Asia in the manufacturing of highest-end wafers. Thus, the governments of the UK, Germany, and France are making significant investments in the semiconductor technology and focusing on partnerships and collaborations to boost the regional market. The establishments of key production centers in the EU and European Free Trade Association (EFTA) that include Austria, France, Germany, Italy, Ireland, and the Netherlands, all of these countries are home to several leading manufacturers is projected to boost the Europe’s sapphire substrate market growth.

Market Insights – Sapphire Substrate Market

The sapphire substrate market was dominated by APAC, followed by North America, Europe, Middle East & Africa, and South & Central America. The "Big Four" semiconductor areas—South Korea, Japan, China, and Taiwan—have played a key role in the semiconductor industry's upstream, midstream, and downstream growth, even globally. To compete and flourish in such a highly competitive environment, Asia Pacific nations will accelerate the speed of R&D and innovation in the semiconductor business as demand for semiconductors grows and diversity standards rise. As a result, Asia Pacific will become the global semiconductor industry's backbone. For instance, in August 2020, Monocrystal—a key player in synthetic sapphire growing and processing—started a project aiming to manufacture extra-large diameter sapphire wafers for disruptive light-emitting diode (LED) applications. The Intergovernmental Russian Chinese Commission has approved it on Investment Cooperation. These factors will promote tremendous growth in the region and make Asia Pacific a major region for the sapphire substrate market size during the forecast period.

Application-Based Insights

The sapphire substrate market, by application, is segmented into LED, RFIC Application, Laser Diode, and Silicon on Sapphire (SOS) IC, and Others. Sapphire substrates are used in the production of silicon-on-wafers to produce high performance radio frequency integrated circuit (RFIC) application. The use of sapphire substrates is high in LED as it has good electrical insulation and high temperature resistance. The LED segment led the sapphire substrate market share in 2021.

The sapphire substrate market is segmented on the basis of wafer diameter, application, and geography. Based on wafer diameter, the market is segmented into 2 inches, 4 inches, 6 inches, and others. Based on application, the market is segmented into LED, RFIC, laser diode, and silicon on sapphire (SOS) IC and others. Based on geography, the sapphire substrate market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South and Central America.

Sapphire Substrate Market Regional Insights

The regional trends and factors influencing the Sapphire Substrate Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Sapphire Substrate Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Sapphire Substrate Market Report Scope

Sapphire Substrate Market Players Density: Understanding Its Impact on Business Dynamics

The Sapphire Substrate Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Sapphire Substrate Market are:

1. Iljin Display Co. Ltd.
2. Kyocera Corporation
3. Meller Optics, Inc.
4. Monocrystal
5. Rubicon Technology Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Saint-Gobain Group; KYOCERA Corporation; Semiconductor Wafer, Inc.; Precision Micro-Optics, Inc.; and Crystalwise Technology, Inc. are among the key sapphire substrate market players.

Players operating in the sapphire substrate market study are mainly focused on the development of advanced and efficient products.

• In 2022, Meller Optics, Inc. introduced a complete range of small high-precision sapphire and ruby balls to use in instruments, metering equipment, and other precision mechanisms requiring low friction bearings, extended life, and dimensional accuracy.

• In 2021, Meller Optics, Inc. released custom-made sapphire windows and domes suitable for shielding cameras, detectors, and sensors on military and commercial drones built for usage in severe environments.