Market Trends of Europe Small Signal Transistor Industry
The significant growth in the consumer electronics sector is analyzed to boost the demand for small signal transistors
- Transistors represent one of the significant innovations in the electronics industry. This can be accredited to their high electron mobility, wide temperature limits, and low energy consumption. Consumer electronics (CE) forms a multibillion-dollar industry, steadily progressing and developing with the technology and adding new product lines toward changing lifestyles. With the advent of the Internet of Things (IoT), various end-user industries are increasingly adopting advanced solutions to enhance their operations.
- Small-signal transistors are mostly used to amplify or manipulate low-amplitude signals, typically in the range of a few volts. Modern electronic devices make use of these transistors. For instance, the smartphone is the major consumer of semiconductors in this segment. The smartphone market has been very competitive in recent years. The increasing usage of mobile phones is further anticipated to drive the studied market. According to Germany's statistical office, in 2022, 98.1 % of German households owned at least one mobile phone, which was 97.6 % in 2021.
- As of March 2020, the 5G coverage is reported to have reached 71 locations in the United Kingdom. It was also announced that the commercial launch in 2020 was the first phase of the 5G rollout. It was a non-standalone 5G new radio deployment. But, Phase 2, from 2022 onward, will look at the full 5G core network, enhanced device chipset capabilities, and increased availability of the 5G-ready spectrum. Developments in the 5G technology will drive the smartphone market, increasing the demand for the small signal transistor.
- In the past, the Fédération Internationale de Football Association (FIFA) World Cup tournament was expected to have increased television sales in Europe, creating a demand for small signal transistors. According to a survey conducted by TCL Europe, a major television manufacturer, 61% of people expressed their intention to follow the competition, with 83% stating that they would continue watching it even if their national team was eliminated. Additionally, 8% of respondents expressed their intention to purchase a new TV specifically for watching the World Cup. Such popularity of the sport is expected to create a demand for small signal transistors in consumer electronics in the region.
- Additionally, radio is one of the major sources of entertainment for people in Europe. Radio is the most trusted medium by people in the region. According to a survey conducted by European Commission, 56% of the population trusted radio compared to 49% for both TV and press.
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Germany is Expected to Register the Fastest Growth Rate
- Germany is estimated to hold the highest share in 2022, with a significant growth rate during the forecast period. Moreover, the growing government initiatives in the region further contribute to the market growth rate.
- For instance, Ford announced that by mid-2026, 100% of its passenger vehicle range in Europe would be zero-emissions capable, all-electric or plug-in hybrid, and completely all-electric by 2030. The significant growth potential of the market is evident from these trends, which can be attributed to the extensive use of small signal transistors in electric vehicles.
- The German government is also aggressively promoting electric vehicles by implementing incentives and regulations to lower the price of electric vehicles to make them more affordable than petrol-powered cars. The automotive industry in Germany is witnessing growth in electric cars, as seen in the chart beside. For instance, electric car battery sales are expected to grow to USD 60 billion by 2030. Thus, with the growth in electric car adoption, battery manufacturing has significant growth potential.
- Germany also offers considerable tax reductions and incentives for electric car and charging station purchases. New electric automobiles costing less than 40,000 EUR (USD 450566) are eligible for a 9,000 (USD 10126) EUR government refund, while a 900 EUR (USD 1013) subsidy from the state-owned development bank is available for the construction of a private electric car charging station.
- German electric car buyers continued to benefit from generous subsidies. Owing to the larger market potential, key original equipment manufacturers (OEMs) are pushing investments in the country to gain significant market share. For instance, in March 2022, Volkswagen announced investing EUR 35 billion (USD 39.45 billion) to build a new electric vehicle plant in Wolfsburg, Germany. The new plant will focus on mass-market "Trinity" vehicles, which are the centerpiece of Volkswagen's new all-electric fleet.
- Furthermore, in March 2022, Tesla inaugurated the fourth Gigafactory in Berlin, the first in Europe. Annually, the Tesla Giga Berlin project is expected to produce up to 5,00,000 automobiles.
- Additionally, according to the Germany Trade & Invest, the region's electronics and electrical companies manufacture over 100,000 different electronic products and systems, ranging from automation systems, electronic medical equipment, automotive electronics, and microelectronic components. Thus with the growing demand for electronic product, the studied market is likely to propel in the forecasted period.
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