Europe Semiconductor Device Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.24 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Semiconductor Device Market Analysis
Europe's Semiconductor Device Market is valued at USD 50.63 billion in the current year and is expected to reach a CAGR of 6.24% during the forecast period to become USD 68.52 billion by the next five years.
- The semiconductor industry is estimated to continue its robust growth during the forecast period to accommodate the increasing demand for semiconductor materials in emerging technologies, such as artificial intelligence (AI), autonomous driving, the Internet of Things, and 5G, coupled with competition among key players and consistent spending on R&D.
- For instance, Germany and Norway have set a target to make their transportation fully electric by 2040, banning the sale of new diesel and petrol cars. In line with this objective, the EV market in the country is expanding steadily, with the number of electric vehicles in the UK rising by 71% in 2021, as per the Society of Motor Manufacturers and Traders (SMMT). As the UK prepares to make the transition to pure-electric vehicle production over the coming years, with some manufacturers and brands committing to going 100% electric as early as 2025, demand for critical power electronic devices and systems is set to increase. This will further propel the market growth.
- Furthermore, as the impact of digitalization on lives and businesses has increased, semiconductor device markets have boomed. Notably, this has further resulted in government programs to support the 5G deployment. For instance, The European Commission recognized the importance of the 5G network at an early stage and established a public-private partnership to develop and research 5G technology. Moreover, in October 2022, according to the GSMA report, 311 million 5G connections will be there across Europe, with a 44% adoption rate by 2025.
- The semiconductor industry is considered one of the most complex industries. This is because more than several processing steps and various products are involved in their manufacturing and the harsh environment it faces, e.g., the volatile electronic market and the unpredictable demand.
- The outbreak of COVID-19 significantly disrupted the supply chain and production of the studied market in the initial phase of 2020. For circuit and chipmakers, the impact was more severe. Due to labor shortages, many of the package and testing plants in the Asia-Pacific region reduced or even suspended operations. This also created a bottleneck for end-product companies that depend on semiconductors. However, despite the decline in production caused by COVID-19, Europe's major industry, like the automobile industry, remains export-driven. As a result, these factors are boosting the automotive semiconductor device market's growth in Europe.
Europe Semiconductor Device Market Trends
Rising Demand for Consumer Electronics Goods
- The rising proliferation of smartphones, feature phones, and tablets is driving the market. As per Accenture, the first 4G LTE network launched in Sweden in 2009, setting a trajectory within Europe for exponential growth within wireless telecommunications. Currently, 5G networks and technology are further revolutionizing wireless communications by transforming existing market sectors and industries. As per the company, between 2021 and 2025, 5G will drive up to EUR 2.0 trillion in total new sales across all major industries in the European economy.
- According to the World Economic Forum, the EU aims to raise its market share in the global semiconductor industry from 9% to 30% by 2030. In order to prevent more supply chain disruptions and ultimately become less reliant on foreign companies, the European Union is supporting further investments in the semiconductor sector, which is augmenting the market growth.
- For instance, the European Commission, which serves as the EU's executive branch, announced a new European Chips Act in February 2022 that will allow for an additional EUR 15 billion (USD 17.11 billion) in public and private investments until 2030 to give manufacturers the resources they need to succeed in Europe, such as investments in R&D. Due to this, it is anticipated that such government assistance will increase demand for the local market.
- Similarly, Europe is significantly adopting Global Warming Potential (GWP) and natural refrigerants in air conditioning and heat pump systems compared to other regions. Under the European F-gas Regulation, the amount of HFC (hydrofluorocarbon) placed annually on the EU market is capped. The HFC quota is then progressively reduced. As part of this, the period 2018 - 2021 represents a critical phase in this progress. The F-gas Regulation needs a substantial cut in the usage of HFCs between 2015 and 2030 to mitigate climate change. This has caused a significant price rise in HFC refrigerants in the last few years. Such changes in the regulations by various regulatory bodies globally are expected to increase the demand for GVAC systems, thereby increasing the need for semiconductor devices in the market.
Automotive Sector to hold a Significant Market Share
- Semiconductor chips have become an essential component of modern vehicles due to their broad application in numerous vehicle operations. Chips used in automobiles can range from basic components comprising a single transistor to elaborate integrated circuits managing a complex system. Chips, for example, can be found in car LED lighting. Every diode inside an LED light unit is a chip that emits light. LED headlights alone account for a large number of chips in current vehicles. To function, the headlights require control devices as well.
- The growing requirement for greater safety and advanced driver assistance systems (ADAS) in automobiles has accelerated semiconductor demand. Semiconductor technologies provide intelligent features such as backup cameras, adaptive cruise control, blind-spot recognition, lane change aid, airbag deployment, and emergency braking systems. ADAS also includes ultrasonic sensors for short-range functions like parking assist a wide range of sensors, including image and camera sensors for vision-based features and radar and lidar sensors for object recognition in low-light or foggy conditions.
- For instance, in May 2022, Hitachi Energy announced that it would launch globally RoadPak, its pioneering power semiconductor module for EVs, at PCIM Europe, a leading power electronics trade fair in Nuremberg, Germany. RoadPak is a compact module that uses state-of-the-art silicon carbide (SiC) technology to achieve very high levels of power density for faster charging and reliability over the vehicle's lifetime, along with very low power losses for a long driving range.
- The increasing demand for electric vehicles is expected to open new growth opportunities for the studied market. An increased number of electronic devices and sensors are used in electric vehicles, driving the demand for semiconductor chips. For instance, Ford has recently announced that by mid-2026, 100% of its passenger vehicle range in Europe will be zero-emissions capable, all-electric or plug-in hybrid, and will be completely all-electric by 2030. Such trends depict the huge growth potential of the market owing to the widespread use of discrete power semiconductors in Electric Vehicles.
- To avoid paying high penalties for non-compliance with EU norms, several heavy-duty truck manufacturers in Europe have been investing in integrating novel technology to meet the zero-emission objective from 2025 onwards. The European Union has established carbon-neutrality goals and criteria for heavy-duty vehicles. These include a 15% decrease beginning in 2025 and increasing to 30% by 2030, with zero emissions by 2050.
Europe Semiconductor Device Industry Overview
The Europe Semiconductor Device Market is reasonably competitive and consists of several major players. The market appears to be moderately concentrated. The market poses high barriers to entry for new firms. New entrants must be content with high capital requirements, while the technology-intensive nature of the market makes it imperative for market players to track technological developments closely.
In March 2022, Intel issued the first phase of its investment plans of approximately EUR 80 billion in the European Union over the next decade across the entire semiconductor value chain, including research and development (R&D), manufacturing, and packaging technologies. In this investment, the company plans to invest approximately EUR 17 billion in establishing a semiconductor fab mega-site in Germany, along with the development of a new R&D and design facility in France, and to invest in R&D, manufacturing, and foundry services in Italy, Ireland, Poland, and Spain.
In September 2022, STMicroelectronics introduced its stellar P6 automotive MCU for EV platform system integration, targeting the coming electrified drivetrains and domain-oriented, over-the-air updatable systems that are the foundation of the next generation of EVs.
In July 2022, STMicroelectronics released STM32Cube.AI version 7.2.0, the artificial intelligence (AI) development tool by an MCU (microcontroller) vendor, to support ultra-efficient, deeply quantized neural networks. STM32Cube.AI version 7.2.0 also adds support for TensorFlow 2.9 models, kernel performance improvements, new Scikit-Learn machine learning algorithms, and new Open Neural Network Exchange (ONNX) operators.
Europe Semiconductor Device Market Leaders
Intel Corporation
Nvidia Corporation
Qualcomm Incorporated
STMicroelectronics NV
Kyocera Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Semiconductor Device Market News
- August 2022: Samsung Electronics Co., Ltd., the global company in advanced memory technology, announced the 990 PRO, the company's high-performance NVMe SSD based on PCIe 4.0. Delivering lightning-fast speeds and superior power efficiency, the new SSD is optimized for graphically demanding games and other intensive tasks, including 3D rendering, 4K video editing, and data analysis.
- July 2022: Samsung Electronics Co., Ltd., the Global innovator in advanced memory technology, announced that it successfully developed the second generation of its pioneering SmartSSD. The SmartSSD is playing an increasingly important role, especially with the growth of next-generation technologies such as AI, machine learning, and 5G/6G, which require large amounts of data processing.
- May 2022: Hitachi Energy launched RoadPak, its pioneering power semiconductor module for EVs, at PCIM Europe, a leading power electronics trade fair in Nuremberg, Germany. RoadPak is a compact module that uses state-of-the-art silicon carbide (SiC) technology to achieve very high levels of power density for faster charging and reliability over the vehicle's lifetime, along with very low power losses for a long driving range.
- April 2022: Xilinx announced the introduction of the Versal Premium series with AI Engines! Next-generation radar and wireless systems demand high-performance signal processing and the ability to handle massive amounts of data moving in and out of computing devices. The new Versal Premium series with AI Engines are built for those requirements, optimized for signal processing-intensive applications in the aerospace and defense (A&D) and test and measurement (T&M) markets.
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 Technological Trends
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID- 19 on the Industry
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption of Technologies like IoT and AI
5.1.2 Rising Demand for Consumer Electronics Goods
5.2 Market Challenges
5.2.1 High Competition in The Semiconductor Manufacturing Market
6. MARKET SEGMENTATION
6.1 By Device Type
6.1.1 Discrete Semiconductors
6.1.2 Optoelectronics
6.1.3 Sensors
6.1.4 Integrated Circuits
6.1.4.1 Analog
6.1.4.2 Logic
6.1.4.3 Memory
6.1.5 Micro
6.1.5.1 Microprocessors (MPU)
6.1.5.2 Microcontrollers (MCU)
6.1.5.3 Digital Signal Processors
6.2 By End-User Vertical
6.2.1 Automotive
6.2.2 Communication (Wired and Wireless)
6.2.3 Consumer
6.2.4 Industrial
6.2.5 Computing/Data Storage
6.3 By Country
6.3.1 Germany
6.3.2 United Kingdom
6.3.3 France
6.3.4 Rest of the Europe
7. Company Profiles
7.1 Intel Corporation
7.2 Nvidia Corporation
7.3 Kyocera Corporation
7.4 Qualcomm Incorporated
7.5 STMicroelectronics NV
7.6 Xilinx Inc
7.7 NXP Semiconductors NV
7.8 Toshiba Corporation
7.9 Samsung Electronics Co Ltd
7.10 ON Semiconductor Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Europe Semiconductor Device Industry Segmentation
The study analyzes the market of semiconductor devices in terms of the revenue accrued. For the scope of the study, the report includes devices such as Discrete Semiconductors, Sensors, and Integrated Circuits for the market sizing calculation, and all the other devices, such as passive components, are excluded from the study. The study also covers the activities of major players in the market along with their current strategies, recent developments, and product offerings.
Europe Semiconductor Device Market is segmented by Device Type (Discreet Semiconductors, Optoelectronics, Sensors, Integrated Circuits (Analog, Logic, Memory, Micro (Microprocessors, Microcontrollers, Digital Signal Processors)), End-user Application (Automotive, Communication (Wired and Wireless), Consumer, Industrial, Computing/Data Storage), and country. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Device Type | |||||
| Discrete Semiconductors | |||||
| Optoelectronics | |||||
| Sensors | |||||
| |||||
|
| By End-User Vertical | |
| Automotive | |
| Communication (Wired and Wireless) | |
| Consumer | |
| Industrial | |
| Computing/Data Storage |
| By Country | |
| Germany | |
| United Kingdom | |
| France | |
| Rest of the Europe |
Frequently Asked Questions
What is the current Europe Semiconductor Device Market size?
The Europe Semiconductor Device Market is projected to register a CAGR of 6.24% during the forecast period (2024-2029)
Who are the key players in Europe Semiconductor Device Market?
Intel Corporation, Nvidia Corporation, Qualcomm Incorporated, STMicroelectronics NV and Kyocera Corporation are the major companies operating in the Europe Semiconductor Device Market.
What years does this Europe Semiconductor Device Market cover?
The report covers the Europe Semiconductor Device Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Semiconductor Device Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Semiconductor Device Industry Report
Statistics for the 2024 Europe Semiconductor Device market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Semiconductor Device 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.
