Market Size of Europe Analog IC Industry
| 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.
