Market Trends of Europe Semiconductor Device In Consumer Industry
Rising Demand for Consumer Electronics Products to Drive the Market Growth
- Semiconductors are crucial parts of electronic devices and are also utilized in electronic systems that make it possible for infrastructure to run. Daily, more than 100 billion semiconductors are consumed in the industry. More than one type of semiconductor will almost certainly be present in an electrical product. For instance, a smartphone uses many semiconductors for processing, display, facial recognition, and connectivity (like 5G) functions.
- Since a sizable portion of the population in Europe has a high per capita income, they desire things that are in keeping with their opulent way of life. The demand for household appliances with Bluetooth and Wi-Fi connectivity has increased. Customers' interest in smart homes is growing as businesses introduce goods with premium features. The ability of intelligent refrigerators, microwaves, and air conditioners to effortlessly link to a customer's smartphone and enable remote monitoring of the appliances has significantly raised the demand for these products in recent years.
- The consumer electronics market in Europe will continue to expand over the next several years as consumers' demand for home products connected to smartphones increases significantly. Wearable technology is becoming more popular among people to accurately assess their overall health and fitness.
- The gaming consoles typically operate with semiconductors such as integrated chips, etc. The increasing adoption of consoles can play a significant factor in the market growth. Furthermore, gaming consoles are the third most popular home entertainment system after televisions and DVD players. For example, most markets with the highest penetration of video game consoles are in Europe. 33% of adults in the United Kingdom can access a gaming console.
- The use and development of communications infrastructure (such as 5G and 6G), artificial intelligence, smart devices that communicate data over a network (Internet of Things), and the transition to Research & development (R&D) are all expected to increase demand for semiconductors significantly in the region.
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United Kingdom Region to Grow Significantly
- The usage of smart home appliances is expanding in the country as more people embrace technology to improve their lifestyles. Hence, reputed companies are adopting partnerships as their core strategies to boost intelligent home adoption in the country. For instance, in October 2023, HMD Global, the Finnish company known for the Nokia brand, launched European-manufactured smartphone. This strategic step follows HMD Global's announcement six months ago, outlining its shift towards European manufacturing. The pivot was a response to rising enterprise demand for locally sourced hardware, driven by concerns over security and sustainability.
- To test compatible responses to demand, including through smart meters and energy management systems, the United Kingdom announced a program on energy intelligent appliances in 2022. Under this program, using energy-smart devices will aid the shift to a flexible and low CO2 energy system. The power demand will change, becoming more flexible to meet the near-term renewable energy supply. This will enable customers to actively regulate the market and significantly advance the UK's transition to net zero.
- The United Kingdom government projects that 2024 there will be over 150 million IoT devices in the country. Over 40% of all IoT connections come from the white goods industry and consumer wearables. The most popular category will be smartwatches and ear-worn fitness and health monitors. Smartwatches comprise several semiconductor materials and are frequently utilized as many measure their heart rates and monitor their health. In the UK's 2023 survey, it has been identified that 22% of respondents use smartwatches for personal use. This is anticipated to excel in the market growth during the projected period.
- Given the advantages smartwatches and other wearables offer, particularly to older adults, demand for these gadgets and the aging population is rising dramatically. For instance, Fitbit United Kingdom sells the Sense wristwatch, which, according to the firm, uses a cutting-edge environmental data acquisition (EDA) sensor to help customers manage stress. These trends will propel the market growth during the projected period.
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