Europe Analog IC Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Analog IC Market Analysis
The European analog IC market is valued at USD 10.80 billion in the current year. It is expected to register a CAGR of 5.6% during the forecast period to reach a value of USD 15.22 billion. The European countries have been experiencing increased demand for electric vehicles, clean energy, expanding data centers, 5G, and automated manufacturing, which requires electronic components, thus driving the market.
- The advent of IoT and changing consumer preferences toward purchasing various gadgets and wearables capable of operating and performing a plethora of functions with internet connectivity are also set to propel the growth of routers and modems in the market over the forecast period. Such changes in consumer preferences, coupled with the increasing adoption of routers and modems post the COVID-19 pandemic, are expected to fuel the demand for analog ICs.
- Such trends significantly contribute to the growth of the consumer electronics and computing device industry. This is evident because many consumer electronics and computing device manufacturers are reporting stable growth in the European region. For instance, Apple Inc., a leading provider of smartphones, tablets, and PCs, reported a net sales revenue of USD 95.12 million in 2022 from the European market. Compared to its regional income in 2016, the company revenue increased by USD 45.17 million.
- Another factor is Europe's push to be carbon neutral by 2050. The EU's European Green Deal, a set of policy directives unveiled in December 2019, pushed the demand for more advanced chips to achieve energy efficiency.
- According to GSMA, the number of IoT connections in the European region is also expected to reach 4.3 billion by 2025, which may support the market's growth in the region.
- Designing analog IC is a major challenge faced by leading manufacturers as design for various types of analog ICs is unpredictable due to various innovations and technological advancements in the devices. Managing the quality of the product while cost-effectively upgrading analog ICs is another challenge faced by market players.
- The COVID-19 pandemic severely impacted the semiconductor market in the region. Stringent government-mandated lockdowns contracted the production of automotive, a key application area for semiconductor wafers, thus restraining sales of semiconductor wafers for multiple purposes, such as infotainment systems, collision detection, and navigation. However, it accelerated the demand for consumer electronic products. It has been boosting the demand for semiconductors such as analog IC.
Europe Analog IC Market Trends
Growing Demand for Infotainment and ADAS System in Automobiles
- The rising luxury vehicle sales and increasing customer preference for in-dash infotainment systems are driving the European analog IC market. Analog IC designed for automotive end equipment, such as infotainment systems, includes information and passenger electronics systems.
- The evolution of analog ICs for the automotive sector has benefitted different applications, like infotainment systems, vehicular handling and dynamics, power management, powertrains controls, safety solutions, IoT remote connected features, etc. Such features incorporate different ICs dedicated to specific functions to network among different sections of vehicular operation.
- Some other infotainment trends that drive the application of analog ICs are increased connectivity, 5G capability, OTA updates, and more AI. In terms of increased connectivity, IoT is driving connected vehicles, and the need for onboard car communication devices is growing as it allows quick access to data through smartphones.
- Automotive infotainment systems are subject to significant technological changes. With the spread of smartphones, the adoption of ADAS and self-driving technology is progressing. In particular, technology such as automobile system vehicles for passenger seats has become very familiar. As engineers develop innovative versions of in-vehicle infotainment systems, these features may contribute to the growth of the European analog IC market.
- In Europe, the automotive industry is an important part of its economy and contributes a significant amount to support economic growth. Several governments support automotive manufacturers in expanding their electric vehicle production and increasing the adoption of electric vehicles in the region. For instance, in December 2022, the UK Export Finance provided a loan of EUR 600 million to Ford to expand its electric vehicle production line and increase its electric vehicle range from two to nine models.
- Many car manufacturers in Europe, such as Nissan, BMW, Range Rover, and Audi, offer luxury comfort in their popular models, like Qashqai, X-series, Evoque, and Q-series, respectively. The premium car segment has been registering considerable sales in the region. In the United Kingdom, the best-selling cars in March 2022 were Tesla Model 3 (6,457 units), Tesla Model Y (6,464 units), Nissan Qashqai (5,401 units), Vauxhall Corsa (5,515 units), and Hyundai Tucson (4,876 units).
Germany to Register Significant Growth
- The German automotive industry has been leading technological innovations in the global automotive industry by integrating smart technologies. Hybrid and electric vehicles are expected to lead the growth of the automotive industry in the country, with companies focusing on electric vehicle technologies. This is expected to impact the growth of the analog IC market positively.
- Germany is Europe's biggest automotive market, accounting for about 25% of all passenger cars manufactured and 20% of all new registrations. The automotive industry generates 24% of the country's total revenue. German automotive manufacturing companies, such as Volkswagen, announced investments of EUR 2 billion in March 2022 to develop a new electric car plant in Germany, with the construction starting in early 2023 and production by 2026. The company is investing EUR 35 billion into the shift toward electric vehicles to become the world's largest electric carmaker by 2025.
- With the growing proliferation of IoT, the number of connected devices in Germany will likely grow significantly in the coming years. Each device will need ICs that contain embedded technology to communicate, sense, or interact with the environment. Therefore, the growth in IoT devices may increase the demand for ICs, thus driving the market during the forecast period. Analog ICs have efficient power consumption features and signal processing capabilities to configure an automated devices ecosystem.
- Germany has a huge penetration of consumer electronic products in the majority of households. The advancing technology has led to the trend of developing smart homes and smart offices where consumer electronics products are vital parts.
- The country is putting significant resources into digitalization efforts to enable industrial sectors to benefit from the opportunities offered by Industry 4.0 technologies. Considering the use of those types of technologies and the overall level of integration of digital skills, the increased adaption of Industry 4.0 technologies, along with the deployment of connected devices, is further expected to boost analog IC sales in the country.
Europe Analog IC Industry Overview
The competition in the analog integrated circuit (IC) market is anticipated to grow moderately during the forecast period. Manufacturers compete based on product innovation and technology differentiation. Many companies are increasingly investing in developing analog ICs to gain the first-mover advantage and a competitive edge. The key players in the market are Analog Devices Inc., Infineon Technologies AG, Microchip Technology Inc., etc.
- August 2022: Microchip Technology announced the addition of the SMC 2000 series of Compute Express Link (CXL)-based Smart Memory Controllers to its serial-attached memory controller portfolio, allowing CPUs, GPUs, and SoCs to link DDR4 or DDR5 memory through CXL interfaces. By allowing current CPUs to optimize application workloads, this technology provides greater memory bandwidth per core and more memory capacity per core. It decreases the total cost of ownership (TCO) in the data center.
- April 2022: NXP Semiconductors announced two updates to its industry automotive radar portfolio, designed for 20 top global OEMs. The industry's first dedicated 16 nm imaging radar processor, the NXP S32R45, was released into mass production, with an initial customer ramp-up starting in the first half of 2022. The new NXP S32R41 has been introduced to extend 4D imaging radar's benefits to many vehicles. Together, these processors serve the L2+ through L5 autonomy sectors, enabling 4D imaging radar for 360-degree surround sensing.
Europe Analog IC Market Leaders
Infineon Technologies AG
NXP Semiconductor BV
Texas Instrument Incorporated
Microchip Technologies Inc.
Analog Device Inc.
*Disclaimer: Major Players sorted in no particular order
Europe Analog IC Market News
- June 2022: STMicroelectronics, a global semiconductor company serving customers across the spectrum of electronic applications, launched a new platform to drive the adoption of digital vehicle keys that allow consumers to access their vehicles keyless using their mobile devices. It revealed a ready-to-use in-vehicle system-on-chip solution for Secure Car Access CCC Release 3 compliant.
- February 2022: Renesas Electronics Corporation, a global provider of advanced semiconductor solutions, announced the development of two 2.4 GHz RF transceiver technologies supporting the low-power Bluetooth Low Energy (LE) short-range wireless communication standard. The new technology also reduces the mounting area and improves energy efficiency.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for Infotainment and ADAS System in Automobiles
5.2 Market Challenges
5.2.1 Complex Design of Analog IC
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 General Purpose IC
6.1.1.1 Interface
6.1.1.2 Power Management
6.1.1.3 Signal Conversion
6.1.1.4 Amplifiers/Comparators
6.1.2 By Application-specific IC
6.1.2.1 Consumer
6.1.2.1.1 Audio/Video
6.1.2.1.2 Digital Still Camera and Camcorder
6.1.2.1.3 Other Consumers
6.1.2.2 Automotive
6.1.2.2.1 Infotainment
6.1.2.2.2 Other Infotainment
6.1.2.3 Communication
6.1.2.3.1 Cell Phone
6.1.2.3.2 Infrastructure
6.1.2.3.3 Wired Communication
6.1.2.3.4 Short Range
6.1.2.3.5 Other Wireless
6.1.2.4 Computer
6.1.2.4.1 Computer System and Display
6.1.2.4.2 Computer Periphery
6.1.2.4.3 Storage
6.1.2.4.4 Other Computers
6.1.2.5 Industrial and Others
6.2 By Country
6.2.1 United Kingdom
6.2.2 Germany
6.2.3 France
6.2.4 Italy
6.2.5 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Device Inc.
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 NXP Semiconductors NV
7.1.5 ON Semiconductor
7.1.6 Richtek Technology Corporation (MediaTek Inc.)
7.1.7 STMicroelectronics NV
7.1.8 Skywork Solutions Inc.
7.1.9 Renesas Electronic Corporation
7.1.10 Texas Instruments Incorporated
7.1.11 Qorvo Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Europe Analog IC Industry Segmentation
Analog IC was primarily designed using hand calculations and process kit parts before microprocessors and other software-dependent design tools were invented. It involves an output signal that follows a continuous input signal. Analog IC is used for designing linear regulators, active filters, oscillators, operational amplifiers, and phased-locked loops.
The market study comprises two types such as general-purpose IC and application-specific IC, providing end-user solutions for consumer electronics, automotive, communication, and industrial use. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, supporting the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The report's scope encompasses market sizing and forecast for segmentation by type and geography. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
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Frequently Asked Questions
What is the current Europe Analog IC Market size?
The Europe Analog IC Market is projected to register a CAGR of 5.60% during the forecast period (2024-2029)
Who are the key players in Europe Analog IC Market?
Infineon Technologies AG, NXP Semiconductor BV, Texas Instrument Incorporated, Microchip Technologies Inc. and Analog Device Inc. are the major companies operating in the Europe Analog IC Market.
What years does this Europe Analog IC Market cover?
The report covers the Europe Analog IC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Analog IC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Analog IC Industry Report
Statistics for the 2024 Europe Analog IC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Analog IC analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
