The United Kingdom semiconductor market is projected to exhibit a growth rate (CAGR) of 7.10% during 2024-2032. The market is experiencing robust growth mainly driven by the increased demand for advanced chips in AI, machine learning (ML) and IoT applications. The rollout of 5G technology further boosts semiconductor needs. Key trends include investments in domestic manufacturing, technological advancement, and government support, positioning the UK as a significant player in the global market.
Report Attribute
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Key Statistics
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Base Year
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2023 |
Forecast Years
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2024-2032
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Historical Years
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2018-2023
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Market Growth Rate (2024-2032) | 7.10% |
5G Technology Deployment
The deployment of 5G technology is significantly impacting the UK semiconductor market, creating a surge in the demand for advanced semiconductors essential for telecommunications infrastructure and mobile devices. For instance, in 2023, Vodafone UK and Three UK announced a joint venture agreement to merge their operations. Vodafone aims to deploy 5G Standalone technology to address 50% of 5G not-spots in rural Wales following its proposed merger with Three UK. The deployment is expected to support emergency response and enable agricultural innovation with significant reductions in chemical usage and water consumption and increase competition in the mobile industry. The U.K.’s Competition and Markets Authority is conducting an in-depth review of the proposed merger. The rollout of 5G networks necessitates sophisticated chips that can handle the increased data transmission rates, lower latency, and enhanced connectivity that 5G promises. These semiconductors are critical for a wide range of 5G components, including base stations, small cells, and user equipment. Enhanced connectivity provided by 5G networks relies heavily on semiconductors that offer higher performance and efficiency. These chips enable faster processing speeds, greater bandwidth, and improved energy efficiency, which are crucial for the seamless operation of 5G services.
Rising Demand for Advanced Chips
The increased demand for advanced chips in the UK semiconductor market is driven by the rise of AI and machine learning applications, as well as the proliferation of Internet of Things (IoT) devices. These advanced chips, such as GPUs and AI accelerators, are essential for tasks ranging from data analysis and natural language processing to autonomous systems and advanced robotics. Simultaneously, the expansion of IoT is significantly boosting the need for specialized semiconductors. IoT devices, which include smart home products, industrial sensors, and wearable technology, require efficient and compact chips that can handle specific functionalities while maintaining low power consumption. For instance, on 19th June 2024, the Port of Aberdeen has awarded North, a leading provider of smart integrated solutions, contracts valued at £1 million (€1.18 million) to enhance the port's CCTV and security systems. The upgrade will involve the deployment of private 5G, public Wi-Fi, and IoT networks at Scotland's largest berthing port. The demand for these semiconductors is further fueled by the integration of connectivity, sensing, and processing capabilities within a single chip, enabling seamless interaction and data exchange across the IoT ecosystem.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on components, material used, and end user.
Components Insights:
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.
Material Used Insights:
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.
End User Insights:
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.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.
The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Units | Billion US$ |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Components Covered | Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, Others |
Materials Used Covered | Silicon Carbide, Gallium Manganese Arsenide, Copper Indium Gallium Selenide, Molybdenum Disulfide, Others |
End Users Covered | Automotive, Industrial, Data Center, Telecommunication, Consumer Electronics, Aerospace and Defense, Healthcare, Others |
Regions Covered | London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |