Europe Semiconductor Market Report

Europe Semiconductor Market Size:

The Europe semiconductor market size is projected to exhibit a growth rate (CAGR) of 6.4% during 2024-2032. The market is growing rapidly, driven by advancements in fifth-generation (5G), the Internet of Things (IoT), and artificial intelligence (AI) technologies, robust automotive and consumer electronics demand, and significant investments in research and development (R&D).

Europe Semiconductor Market Analysis:

• Major Market Drivers: The implementation of 5G technology, the proliferation of IoT devices, and the growing usage of AI are all pushing up demand for advanced semiconductors. Aside from that, the transition to electric cars (EVs) and the advancement of autonomous driving technologies are increasing the demand for high-performance semiconductors.
• Key Market Trends: The rapid implementation of 5G networks across Europe is a significant trend, driving the need for advanced semiconductor components in both infrastructure and devices. Furthermore, the integration of digital technologies into industrial processes, which is increasing demand for semiconductor-powered automation and control systems, is helping to expand the market.
• Geographical Trends: Countries in Europe are experiencing growth in this sector owing to the expanding automotive sector, strong demand from aerospace and defense industries, and adoption of industrial automation.
• Competitive Landscape: The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry.
• Challenges and Opportunities: Major challenges faced by this sector include supply chain disruptions and lack of long-term orders for manufacturers. However, investment in new semiconductor technologies and development of energy-efficient semiconductor solutions are providing considerable opportunities for growth.

Europe Semiconductor Market Trends:

Technological Advancements

Technological advancements are a primary driver of the Europe semiconductor market growth. The rollout of 5G technology is revolutionizing communications, leading to increased demand for advanced semiconductors capable of handling high-speed data transmission and processing. Semiconductors are critical in developing 5G infrastructure, from base stations to network equipment. The European Commission has committed 700 million euros through a public-private partnership to accelerate research and innovation in 5G technology. Currently, 5G has achieved 72% population coverage in the region. Additionally, there were 256074 5G base stations in the European Union (EU) by the end of 2021. Aside from that, the growth of the Internet of Things (IoT) has created a sizable market for semiconductors in the region. In 2021, 48% of large companies and 26% of small businesses in the region used IoT devices. As IoT use spreads across industries, the requirement for specialist chips grows.

Automotive Industry

The rapid expansion of the automotive industry is significantly contributing to the Europe semiconductor market share. This is attributed to the shift towards electric vehicles (EVs) and the development of autonomous driving technologies. In 2022, the EU witnessed a 21.6 percent increase in the registration of new electric cars and vans. This was equivalent to around 2 million new registrations in one year. Additionally, the transition to EVs is accelerating as governments and consumers prioritize sustainability and environmental concerns. From 2025 onwards, the EU will set stricter emission target, which involves a 15% reduction in CO2 emission for both cars and vans. EVs rely heavily on semiconductors for various components, including battery management systems, power electronics, and inverters, which are essential for efficient energy use and vehicle performance. Additionally, advanced driver-assistance systems (ADAS), which enhance vehicle safety and automation, are heavily dependent on semiconductor technology for sensors, processors, and communication systems.

Consumer Electronics

The consumer electronics sector is a major catalyst for the Europe semiconductor market growth. The smartphone market in Europe is expected to grow 1.5% annually between 2024 and 2032. The ongoing demand for sophisticated smartphones and tablets necessitates cutting-edge semiconductors that improve device performance, energy efficiency, and usefulness. Furthermore, advancements in semiconductor technology allow manufacturers to build more powerful processors, improved memory solutions, and efficient power management systems, all of which are essential for modern consumer devices. Furthermore, the growing popularity of wearable gadgets like smartwatches and fitness trackers is driving up the demand for specialist semiconductors.

Europe Semiconductor Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on components, material used, and end user.

Breakup by Components:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others
   

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others.

Memory devices are necessary for data storage in many different applications, such as industrial systems and consumer electronics. The need for improved memory solutions is being driven by the increased need for big data analytics, cloud storage, and high-performance computing, according to the most recent Europe semiconductor market forecast. In consumer electronics, the rise of smartphones, tablets, and wearables needs efficient and compact memory devices. Furthermore, the automobile industry's transition to autonomous vehicles and advanced driver-assistance systems (ADAS) need powerful memory solutions for real-time data processing and storage.

Logic devices, including processors and programmable logic devices (PLDs), are fundamental components in this market. From common consumer electronics to sophisticated industrial machinery, these devices carry out crucial computer tasks in a wide range of applications. The market for advanced logic devices is growing rapidly due to the increasing use of machine learning (ML), artificial intelligence (AI), and Internet of Things (IoT) applications. Furthermore, logic devices play a major role in automation and control systems in Europe's smart manufacturing and Industry 4.0 efforts.

Analog integrated circuits (ICs) are vital for managing and processing real-world signals in various electronic systems. These ICs are used in applications requiring precise analog signal processing, such as audio and video equipment, telecommunications, and medical devices. The growing automotive industry, particularly with regard to the development of electric and hybrid vehicles (HEVs), has led to an increasing demand for analog integrated circuits (ICs). An analog integrated circuit is used in these cars for power management, signal conversion, and battery monitoring.

Microprocessor units (MPUs) are the brains of many electronic devices, carrying out instructions and calculations required for system operations. The MPU segment is expanding rapidly because of the growing complexity and functionality of consumer devices such as smartphones, tablets, and personal computers. The increasing popularity of MPUs is also being fueled by the need for high-performance computing and data centers, which is being pushed by big data analytics and cloud computing trends.

Discrete power devices are crucial for managing and converting electrical power in electronic systems. These devices, which include thyristors, diodes, and transistors, are utilized in power supply, electric car, and renewable energy systems, among other applications that demand high efficiency and dependability. Europe's transition to electric transportation, driven by stringent emission regulations and a growing environmental conscience, is significantly increasing the need for discrete power devices. The effective operation of electric car powertrains and the infrastructure supporting charging is dependent upon these devices. The effective operation of electric car powertrains and the infrastructure supporting charging is dependent upon these devices.

Microcontroller units (MCUs) are integral components in embedded systems, providing control and automation capabilities in a wide range of applications. The growing popularity of smart home appliances, industrial automation, and Internet of Things applications is driving up demand for MCU. In these systems, MCUs are crucial for managing actuators, sensors, and communication modules. MCUs are also essential for the effective operation and control of the increasingly popular smart city and connected infrastructure trends.

Sensors are critical components of modern electronic systems, enabling the detection and measurement of a wide range of physical variables such as temperature, pressure, motion, and light. Their demand in Europe is expanding rapidly as IoT devices, smart home solutions, and industrial automation become more popular. Sensor technology developments, such as miniaturization and greater sensitivity, are also expanding their applications across numerous sectors, fueling the European semiconductor market growth.

Breakup by Material Used:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others
   

A detailed breakup and analysis of the market based on the material used have also been provided in the report. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others.

Silicon carbide (SiC) is a highly sought-after material due to its high thermal conductivity, high electric field breakdown strength, and high-temperature resistance, according to the recent Europe semiconductor market forecast. These attributes make SiC ideal for power electronic devices, particularly in applications requiring high efficiency and reliability. Additionally, the growing adoption of electric vehicles (EVs) and renewable energy systems in Europe is significantly driving the demand for SiC-based semiconductors.

Gallium manganese arsenide (GaMnAs) is a semiconductor material known for its unique magnetic properties, making it a pivotal material in spintronics. Based on the Europe semiconductor market outlook, GaMnAs is being researched for its potential in developing spin-based transistors, which could revolutionize data storage and processing technologies. Moreover, the collaboration between academic institutions and the semiconductor industry in Europe is fostering innovation and the commercialization of GaMnAs-based devices, which could lead to breakthroughs in low-power, high-efficiency electronics.

Copper indium gallium selenide (CIGS) is a semiconductor material widely used in the production of thin-film solar cells. CIGS solar cells are known for their high efficiency, flexibility, and relatively low manufacturing costs. The growing emphasis on renewable energy and sustainability in Europe is driving the demand for CIGS-based solar cells. These solar cells are utilized in various applications, from residential and commercial rooftop installations to large-scale solar farms.

Molybdenum disulfide (MoS2) is an emerging semiconductor material with unique properties, including a direct bandgap, high electron mobility, and excellent mechanical strength. These characteristics make MoS2 highly attractive for next-generation electronic devices, such as transistors, flexible electronics, and optoelectronic components. The research and development (R&D) activities in Europe are actively exploring the potential of MoS2 in various applications, particularly in low-power and high-performance electronics.

Breakup by End User:

• Automotive
• Industrial
• Data Center
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, industrial, data center, telecommunication, consumer electronics, aerospace and defense, healthcare, and others.

The automotive segment holds a significant portion of the European semiconductor market share, owing to the rapid advancement in electric vehicles (EVs), hybrid electric vehicles (HEVs), and autonomous driving technologies. Semiconductors are essential in numerous automotive applications, including powertrain control, battery management systems, advanced driver-assistance systems (ADAS), infotainment systems, and connectivity solutions. Additionally, the increasing integration of Internet of Things (IoT) technology in vehicles, enabling features such as predictive maintenance and vehicle-to-everything (V2X) communication, further propels the demand for advanced semiconductor solutions in the automotive industry.

Based on the latest Europe semiconductor market outlook, the industrial segment encompasses a wide range of applications, from automation and control systems to robotics and smart manufacturing. Industry 4.0, characterized by the integration of digital technologies into manufacturing processes, is a major trend driving semiconductor demand in this segment. Semiconductors are crucial for powering sensors, microcontrollers, and communication modules in industrial automation systems.

The data center segment is experiencing significant growth due to the increasing demand for cloud computing, big data analytics, and artificial intelligence (AI). Data centers require high-performance semiconductors for servers, storage systems, and networking equipment to handle massive amounts of data with high speed and efficiency. The shift towards edge computing, where data processing occurs closer to the data source, is also driving demand for specialized semiconductor solutions.

The telecommunication segment is heavily influenced by the deployment of fifth-generation (5G) networks and the expansion of broadband infrastructure. Semiconductors play a critical role in enabling high-speed data transmission, enhanced connectivity, and low latency in telecommunications equipment. The rollout of 5G technology requires advanced semiconductors for base stations, network infrastructure, and user devices, driving significant demand in this segment.

The consumer electronics segment is a major contributor to the Europe semiconductor market growth, driven by the continuous demand for innovative and high-performance electronic devices. Semiconductors are integral to the functionality of smartphones, tablets, laptops, wearables, and smart home devices. The push for smaller, faster, and more energy-efficient devices drives the need for advanced semiconductor solutions.

The aerospace and defense segment demands highly reliable and high-performance semiconductors for various critical applications. These include communication systems, radar and navigation systems, avionics, and missile guidance systems. Semiconductors in this segment must meet stringent requirements for durability, radiation resistance, and operational efficiency in extreme conditions. Besides this, the increasing focus on unmanned aerial vehicles (UAVs) and advanced defense systems is driving demand for sophisticated semiconductor solutions.

The healthcare segment relies heavily on semiconductor technology for a wide range of medical devices and diagnostic equipment. Semiconductors are essential in applications such as imaging systems, patient monitoring devices, wearable health trackers, and portable diagnostic tools. Furthermore, the push towards digital health and telemedicine has heightened the demand for advanced semiconductor solutions. Additionally, the integration of AI and IoT in healthcare for predictive analytics, remote monitoring, and personalized treatment plans further propels the need for high-performance semiconductors.

Breakup by Country:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Germany, France, United Kingdom, Italy, Spain, and others.

Germany’ semiconductor market is driven by its robust automotive industry, advanced manufacturing sector, and strong emphasis on innovation and research. The country's significant investments in electric vehicles (EVs) and autonomous driving technologies are also acting as growth-inducing factor. Additionally, Germany's Industry 4.0 initiatives, which integrate digital technologies into manufacturing processes, requiring advanced semiconductor solutions for automation, control, and connectivity, is fostering the market growth.

According to the Europe semiconductor market outlook, France is an important country in this sector due to its strong aerospace and defense sector, thriving telecommunications industry, and growing focus on digital transformation. The country's leadership in aerospace and defense necessitates high-performance and reliable semiconductors for various applications, including avionics, radar systems, and satellite communications. Additionally, France's significant investments in fifth-generation (5G) technology and broadband infrastructure are driving the demand for advanced semiconductors in the telecommunications sector.

The United Kingdom is a significant contributor to the European semiconductor market growth because of its strong technology sector, leading research institutions, and innovative startup ecosystem. The country's focus on AI, IoT, and fintech applications is boosting the demand for advanced semiconductor solutions. Additionally, the UK's automotive industry, particularly in the development of electric and autonomous vehicles, requires sophisticated semiconductor components for various applications.

Italy is a growing market for semiconductors in Europe, supported by its diverse industrial base, strong automotive sector, and increasing investments in digital technologies. The country's automotive industry, with a focus on electric vehicles (EVs) and advanced driver-assistance systems (ADAS), drives the demand for high-performance semiconductors. Additionally, the growing adoption of IoT devices and smart home technologies in Italy is further boosting the demand for semiconductors.

Spain is an emerging market for semiconductors in the region, owing to its growing telecommunications sector, expanding renewable energy initiatives, and increasing focus on digitalization. The country's investments in 5G technology and broadband infrastructure are key drivers for semiconductor demand in the telecommunications industry. Furthermore, Spain's commitment to renewable energy, particularly solar and wind power, necessitates advanced semiconductor components for energy conversion and management.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.
• Leading companies are heavily investing in research and development (R&D) to innovate and develop advanced semiconductor technologies. This includes exploring new materials, improving manufacturing processes, and enhancing the performance and efficiency of semiconductor components. Furthermore, major players are collaborating with other technology firms, research institutions, and industry partners to share expertise and strengthen their market position. Additionally, leading players are expanding their manufacturing capabilities to meet the increasing demand for semiconductors. Moreover, the companies are diversifying their product portfolios to cater to a broad range of applications.

Europe Semiconductor Market News:

• In December 2023: Intel Corporation and Siemens AG signed a memorandum of understanding (MoU) to advance semiconductor manufacturing production efficiency and sustainability.
• In February 2024: Micron started the mass production of its high-bandwidth memory (HBM) semiconductor for application in Nvidia’s latest chip for artificial intelligence (AI).

Europe Semiconductor Market Report Scope:

Key Questions Answered in This Report:

• How has the Europe semiconductor market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the Europe semiconductor market?
• What is the impact of each driver, restraint, and opportunity on the Europe semiconductor market?
• What are the key regional markets?
• What is the breakup of the market based on the components?
• Which is the most attractive components in the Europe semiconductor market?
• What is the breakup of the market based on the material used?
• Which is the most attractive material used in the Europe semiconductor market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the Europe semiconductor market?
• What is the competitive structure of the market?
• Who are the key players/companies in the Europe semiconductor market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe semiconductor market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Europe semiconductor market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe semiconductor industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.