Europe Discrete Semiconductor Market Size (2024 - 2029)

Europe Discrete Semiconductor Market Analysis

The Europe Discrete Semiconductor Market size is estimated at USD 7.06 billion in 2024, and is expected to reach USD 8.75 billion by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).

• Europe hosts various discrete semiconductor companies and vendors, including ABB Ltd, Infineon Technologies AG, STMicroelectronics NV, NXP Semiconductors NV, Nexperia, and Eaton Corporation. It also serves as a major manufacturing hub, leading to a strong demand for industrial and automotive-grade discrete semiconductors within the area.
• The discrete semiconductor market in the region shows promising potential due to government initiatives promoting electric vehicles. The European Union has set a target to decrease CO2 emissions by 55% from 1990 levels by 2030, while the United Kingdom plans to reduce carbon emissions by 70% by 2035. These initiatives are expected to boost the adoption of EVs in the region, thereby stimulating the market’s growth.
• According to the European Automobile Manufacturers' Association (AECA), Europe witnessed approximately 757,800 electric vehicle sales in the second quarter of 2023, encompassing both battery electric vehicles and plug-in hybrid electric vehicles.
• Additionally, the region is experiencing rapid growth during the projected timeline thanks to significant investments in data centers, cloud computing, and AI and VR technologies. Europe is witnessing a substantial need for data centers from small and medium-sized organizations that do not have the means to establish their in-house IT operations, leading to a demand for discrete semiconductors in communication infrastructure.
• In February 2024, Germany led all European countries with the highest number of data centers and was actively engaged in the race for cloud adoption. According to CloudScene, Germany is home to 522 data centers, outpacing its European counterparts.
• Rising demand for integrated circuits (IC) or microchips may further hamper the market's growth. Integrated circuits (IC), or microchips, are electronic components that integrate multiple electronic circuits onto a single semiconductor substrate. In contrast, discrete semiconductors are electronic components designed to carry out specific functions like regulating current flow, amplifying signals, and switching.
• Several macroeconomic trends affect market growth, economic growth, inflation, government spending priorities, global trade, and geopolitical dynamics. The inflation rates in European countries rose, with Germany, Sweden, France, and the United Kingdom witnessing a significant increase compared to January 2022. By August 2023, the inflation rate in the United Kingdom reached 6.7%, up from 5.5% in January 2022. These developments were anticipated to impede the market’s growth in 2023.

Europe Discrete Semiconductor Industry Segmentation

Discrete semiconductors are singular components contained within their own packaging, separate from other elements. Unlike integrated circuits (ICs) that have the capacity to contain thousands, or even billions, of transistors in a single package, discrete semiconductors are restricted to carrying out a single, designated task.

The study tracks the revenue accrued through the sale of discrete semiconductors by various players in the European market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates during the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The Europe discrete semiconductor market report is segmented by type (diode, small signal transistor, power transistor [MOSFET power transistor, IGBT power transistor, other power transistors], rectifiers, and thyristors), end-user vertical (automotive, consumer electronics, communication, industrial, and other end-user verticals), and country (United Kingdom, Germany, France, and Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.