The global silicon on insulator market size is projected to grow from USD 1.0 billion in 2020 to USD 2.2billion by 2025, at a CAGR of 15.7% from 2020 to 2025.Advancements in smartphones, tablets, earphones/headphones, and wearables are expected tofuel thegrowth of the market for consumer electronics, which use SOI wafers. Moreover,the rising adoption of SOI-based devices in advanced applications such as autonomous cars is also creating growth opportunities for the SOI market.

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Effective use of silicon during the manufacturing of thin SOI wafers and low operating voltage and highperformance of SOI-based devices are some of the factors expected to contribute to the growth of the SOImarket across the globe. The flourishing Integrated Circuit (IC) industry, expanding SOI ecosystem in APAC, and increasing use of SOI in IoT applications act asgrowth opportunities for the SOI market during the forecast period.

The SOI market for 300 mm wafer size isexpected to grow at a higher CAGR than the market for 200 mm and less than 200 mm wafer sizeduring the forecast period. This growth of the market for 300 mm wafer size can be attributed to the increasing adoption of organic and inorganic growth strategies by SOI manufacturers for the development of 300 mm SOI wafers. For instance, in June 2018, TowerJazz (Israel) announced the expansion of the RF-SOI 65 nm processin its 300 mm Uozu, Japan fab.

The RF-SOI wafer type segmentaccounted for the largest share of the SOI market in 2019. For data transmission over 2G, 3G, and 4G/ Long-term Evolution (LTE), mobile devices require dedicated Front-end Modules(FEMs). These FEMs use RF-SOI chips, which integrate switches, poweramplifiers, antenna tuning components, power management units, and filters on a single platform.As these chips need to transmit a large amount of data over along distance,they require RF-SOI wafers.This, in turn, fuels the demand for RF-SOI wafer types across the globe.

The consumer electronics application segmentaccounted for the largest share of the SOI market in 2019. The growth of this segment can be attributed tothe increasingglobal demand for compact electronic devices, have low power consumption, offer high operational speed, and have extendedbattery life.Increasing useof RF-SOI in smartphones andwearables and rising adoption of FD-SOI in IoT applicationsalsospur the growth of the consumer electronics application segment of the SOI market. For instance, Xiaomi (China), asubsidiary of Huami (US) and a leadingmanufacturer of wearables, incorporated 28 nm FD-SOI GPS ofSony (Japan) in its Amazfit smartwatch.

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Europe led the SOI market in 2019.The presence of leading SOI wafer manufacturers such asSoitec (France) and STMicroelectronicsN.V. (Switzerland) in Europe is contributing to the growth of the SOI market in theregion. Smart cut, a patentedtechnology of Soitec that is used by wafer manufacturers, accounted for a majority share of the global SOImarket in 2019. The presence of key automotive companies in this region is also fueling thegrowth of the SOI market in Europe.