United Kingdom Semiconductor Market

United Kingdom Semiconductor Market Overview:

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.

United Kingdom Semiconductor Market Trends:

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.

United Kingdom Semiconductor Market News:

• In May 2024, the UK government allocated $1.6bn to Semiconductor Institute to support the national strategy pertaining to the growth of the semiconductor industry. The newly formed institute aims to unify the semiconductor sector drive skills development and secure the UK's position in semiconductor science. The funding will be sourced from the original £1bn budget and additional financial support is not expected.
• In March 2024, the UK government sanctioned £16.6m for semiconductor research for electric vehicles (EVs) and clean energy. This funding is a part of the £1bn semiconductor strategy and will be overseen by Innovate UK. Approximately £14m will be allocated for power electronics benefiting businesses and researchers in Newcastle and Strathclyde. The investment aims to promote innovation in semiconductor packaging and drive sustainable growth in energy-intensive sectors. Additionally, support for increased automation in the assembly process is included.
   

United Kingdom Semiconductor Market Segmentation:

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:

• 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.

Material Used Insights:

• 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.

End User Insights:

• 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.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

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.

Competitive Landscape:

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.

United Kingdom Semiconductor Market Report Coverage:

Key Questions Answered in This Report:

• How has the United Kingdom semiconductor market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United Kingdom semiconductor market?
• What is the breakup of the United Kingdom semiconductor market on the basis of components?
• What is the breakup of the United Kingdom semiconductor market on the basis of material used?
• What is the breakup of the United Kingdom semiconductor market on the basis of end user?
• What are the various stages in the value chain of the United Kingdom semiconductor market? 
• What are the key driving factors and challenges in the United Kingdom semiconductor?
• What is the structure of the UK semiconductor market and who are the key players?
• What is the degree of competition in the UK 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 United Kingdom semiconductor market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United Kingdom semiconductor market.
• Porter's five forces analysis assist 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 United Kingdom semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.