Europe Semiconductor Device Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Europe Semiconductor Device Market Analysis

The Europe Semiconductor Device Market size is estimated at USD 57.46 billion in 2024, and is expected to reach USD 78.63 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).

• Semiconductor devices play a pivotal role in a wide array of electronic devices, spanning from smartphones, LED TVs, and flat-screen monitors to applications in civil aerospace and military systems. Advancements in biometrics are poised to further bolster this sector. Europe's increasing appetite for smartphones and cutting-edge products, including wearables, is notably influencing the market's trajectory.
• During the forecast period, the European semiconductor industry is poised for robust growth. This growth is driven by the escalating demand for semiconductor materials in cutting-edge technologies like artificial intelligence (AI), autonomous driving, 5G, and the Internet of Things. This surge is further fueled by heightened competition among industry players and a consistent focus on R&D.
• For instance, the automotive industry's shift toward automation and electrification is significantly boosting the demand for semiconductor devices. These devices, embedded with diverse functionalities, are integral to automotive components like infotainment systems, navigation controls, and collision detection mechanisms. The integration of such advanced features is directly influencing automobile sales.
• The rising adoption of data-intensive IoT devices, alongside the emergence of markets like Industry 4.0, wearables, aviation, healthcare, smart homes, and more, is further bolstering the demand for semiconductor devices.
• Europe's semiconductor market is bolstered by a favorable government stance. Notably, the European Commission, addressing chip shortage worries, initiated the ambitious 'Chips Act.' This plan aims to elevate Europe's semiconductor production share, targeting a doubling by 2030. These initiatives are poised to create significant market opportunities in the coming years.
• However, this market grapples with notable challenges that impede its progress. Notably, the integrated circuits (ICs) segment's rising complexity poses a substantial hurdle. The manufacturing and development of cutting-edge semiconductor devices come with a hefty price tag. This is primarily due to intricate manufacturing processes, the imperative of miniaturization, and the demand for specialized materials and equipment. Consequently, these high production costs directly influence semiconductor pricing, rendering them less accessible to smaller enterprises and cost-conscious consumers.
• The semiconductor supply crisis, initially sparked by the pandemic and further exacerbated by unpredictable geopolitical tensions, has prompted nations across the region to reassess their manufacturing strategies. Recognizing semiconductors as pivotal to economic growth and the well-being of their citizens, the European Commission, in collaboration with other European nations, has unveiled an ambitious initiative. This initiative seeks to ramp up semiconductor production within Europe, with the overarching goals of bolstering the continent's technological independence, enhancing its competitiveness and resilience, and supporting its digital and green transformations.

Europe Semiconductor Device Market Trends

Communication Sector to be the Fastest Growing End-user Vertical

Europe Semiconductor Device Industry Segmentation

Semiconductor devices are among the core components of electronic devices/systems and enable advancements in communications, computing, transportation, and countless other applications in the scope of industries. A wide variety of semiconductor devices are used in today’s industrial, commercial, and residential applications, including discrete semiconductors, optoelectronic devices, and integrated circuits. The market is defined by the revenue generated through the sales of semiconductor devices like sensors, discrete semiconductors, optoelectronics, integrated circuits, etc., by major market vendors in Europe.

The Europe Semiconductor device market is segmented by device type (discreet semiconductors, optoelectronics, sensors and actuators, integrated circuits [analog, logic, memory], micro [microprocessors (MPU), microcontrollers (MCU), digital signal processors]), by end-user vertical (automotive, communication [wired and wireless], consumer, industrial, computing/data storage, other end users), and country (Germany, United Kingdom, France, Rest of Europe). The report offers market forecasts and size in value (USD) for all the above segments.