Europe Semiconductor Diode Market Size

Europe Semiconductor Diode Market Analysis

Europe's semiconductor diode market was valued at USD 695.7 million and is expected to register a CAGR of 2.1% during the forecast period to become USD 771.88 million by the next five years.

• The electronics applications in medical, consumer, industrial, and automobile are increasing rapidly. It is further driving the diodes market in the region to grow. According to IBISWorld, in 2022, the proportions of consumer electronics manufacturing in the United Kingdom amounted to GBP 622 million (USD 857.16 million), and by 2023, it is forecast to reach over GBP 632 million (USD 871.36 million).
• Diodes are used in a few applications, such as voltage regulation, surge protection, switching, and power conversion. One of the significant benefits of using diodes is their ability to protect electrical circuits from damage primarily due to short circuits, overcurrent, and overvoltage. For instance, in April 2022, Osram Licht AG introduced a green laser diode for multiple applications, such as leveling, scanning, and dot projection. It is a 20 mW peak-output edge-emitting laser with a spectral bandwidth of 2 nm and a peak wavelength of 520 nm.
• Furthermore, the miniaturization of electronic products is ensuing across consumer electronics segments. Minimal size with minimum power consumption and ultimate power delivery is the motive of all electronic manufacturers. Due to this, the need for innovative and customized diodes is increasing.
• The growing demand for smartphones with various functions, such as phones that can be used as an MP3 player, FM radio, memo recorder, MP4 player, handheld TV, camera, or even a projector, is advancing. This increased number of signals has raised the requirement for signal-routing solutions. These solutions require diodes with smaller sizes and higher functionality, allowing mobile phone designers to continue making for smaller form factors while providing enhanced design features. This technological need is driving the diodes market to grow. 
• According to Ericsson, the number of smartphone subscriptions in Western Europe is estimated to reach 439 million by 2027. There were approximately 418.78 million smartphone subscriptions in Western Europe as of 2022.
• In Germany, more than 80% of the companies are estimated to witness a high level of digitization along their value chain by 2025. In addition, 20% of companies already consider themselves highly digitized. Among the leaders in digitization in the automotive industry, which helps to increase the use of electronic devices like laptops, remote control systems, etc., may further propel the studied market growth.
• Some key players operating in the market are evolving partnerships and acquisitions to stay competitive. In January 2022, the UK Research Initiative (UKRI) announced that in collaboration with American universities Harvard and MIT and UK universities Strathclyde and Bath (VLC), the University of Sheffield would lead a unique USD 2.44 million project to advance the technology to the next generation of microdisplays and visual light communication in the near future.
• Moreover, the complexity associated with the design of semiconductor diodes can hinder the market's growth. Further, factors such as manufacturing cost and functional reliability issues are also expected to slow the market's growth for the small signal diode, Zener Diode, and Schottky Diode, among others, in the coming years.
• Furthermore, COVID-19 negatively impacted the region's diodes market as it heavily impacted the supply chain and workforce of the market value chain. Due to the pandemic, most companies delayed their hardware upgrades and other long-term migration projects. This hindered the growth of diodes' requirements. Furthermore, the market is expected to grow in the forecasted period as the region's consumer electronics, communication, and automotive industries are increasing.