Industrial Integrated Circuits Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 61.5 Billion |
| Market Size (2030) | USD 84.70 Billion |
| Growth Rate (2025 - 2030) | 6.61% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Industrial Integrated Circuits Market Analysis by Mordor Intelligence
The industrial integrated circuits market size stood at USD 61.50 billion in 2025 and is forecast to reach USD 84.70 billion by 2030, advancing at a 6.61% CAGR. Growth momentum stemmed from sustained digitization of factories, expanding semiconductor content per machine, and policy-led reshoring that strengthened domestic chip capacity in key regions. Wide-bandgap power devices, sensor-rich automation platforms, and edge AI microcontrollers lifted average bill-of-materials values across motion control, robotics, and process instrumentation. Government programs such as the USD 52.7 billion CHIPS and Science Act and the EUR 43 billion (USD 50.62 billion) EU Chips Act redirected capital toward local fabrication, favoring suppliers able to co-design silicon and software for safety-critical environments.[1]U.S. Department of Commerce, “Commerce Department Outlines Vision for Success of CHIPS for America Program,” commerce.gov Meanwhile, export controls accelerated supply-chain bifurcation, prompting industrial OEMs to dual-source legacy nodes to hedge against geopolitical risk.
Key Report Takeaways
- By IC type, analog devices led with 34.2% revenue share in 2024; microcontrollers recorded the fastest 8.5% CAGR through 2030.
- By function, power-management ICs held 35.1% of the industrial integrated circuits market share in 2024, while sensor-interface ICs are projected to expand at a 9.3% CAGR to 2030.
- By technology node, legacy processes (≥45 nm) accounted for 50.4% of the industrial integrated circuits market size in 2024; advanced nodes (≤10 nm) are expected to grow at a 10.1% CAGR.
- By end-use industry, factory automation contributed 28.3% of 2024 revenue; industrial IoT devices and gateways are forecast to register the swiftest 11.5% CAGR.
- By geography, Asia-Pacific commanded 64.6% revenue share in 2024; the same region carries the strongest 8.2% CAGR outlook to 2030.
Global Industrial Integrated Circuits Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Proliferation of Industry-4.0 Smart Factories Requiring High-Reliability ASICs in Europe | +1.2% | Europe, with spillover to North America | Medium term (2-4 years) |
| Rapid Electrification of Heavy Industrial Equipment Driving Demand for High-Voltage Power-Management ICs in North America | +1.5% | North America, expanding to the Global | Short term (≤ 2 years) |
| Expansion of 5G-Enabled Industrial IoT Networks Accelerating Adoption of Ultra-Low-Latency Logic ICs in East Asia | +1.8% | East Asia core, spillover to APAC | Medium term (2-4 years) |
| Government Incentives for Semiconductor Localization Boosting Industrial IC Capacity Additions | +1.1% | Global, concentrated in the US, EU, Japan | Long term (≥ 4 years) |
| Growing Integration of Edge-AI in Machine-Vision and Predictive-Maintenance Systems | +0.9% | Global, led by developed markets | Medium term (2-4 years) |
| Rising Safety and Functional-Integrity Standards Creating Demand for Fail-Safe Redundant IC Architectures | +0.6% | Global, stricter in Europe and North America | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Proliferation of Industry-4.0 Smart Factories Requiring High-Reliability ASICs in Europe
European manufacturers increased deployment of distributed automation that mandates ASICs qualified to IEC 61508 functional-safety levels. German and Scandinavian plants integrated custom silicon for deterministic motor-control loops, often packaged in hermetic enclosures to survive aggressive wash-down environments. Qualification cycles commonly spanned 18-24 months, limiting new-entrant penetration yet deepening account stickiness for established suppliers. Capital support from the EU Chips Act broadened local design capacity, reinforcing the industrial integrated circuits market in the region.
Rapid Electrification of Heavy Industrial Equipment Driving Demand for High-Voltage Power-Management ICs in North America
Mining, construction, and material-handling OEMs shifted from hydraulic actuation to electric drives, raising voltage ceilings above 1,000 V. Silicon-carbide FETs and gate drivers supplied by onsemi, Infineon, and Microchip captured design wins in excavators and haul trucks that reduced lifetime operating costs by up to 30%. Regulatory emissions targets created time-critical replacement cycles, propelling the industrial integrated circuits market toward high-reliability power stages compliant with UL 1741 and IEC 61800-5-1 standards.
Expansion of 5G-Enabled Industrial IoT Networks Accelerating Adoption of Ultra-Low-Latency Logic ICs in East Asia
Private 5G deployments in South Korea and Japan supported robotic pick-and-place systems requiring sub-1 ms end-to-end latency. Foundries delivered logic ICs integrating RF transceivers, deterministic Ethernet, and hardware root-of-trust blocks on a single die. Samsung’s foundry nodes below 5 nm addressed thermal budgets inside compact teach pendants, enabling vision algorithms that previously relied on centralized PCs. Heterogeneous SiP packaging from JCET sped up the commercialization of integrated 5G RF power amplifiers.
Government Incentives for Semiconductor Localization Boosting Industrial IC Capacity Additions
The CHIPS and Science Act awarded up to USD 1.6 billion to Texas Instruments to expand 300 mm analog fabs, ensuring a domestic supply of low-power data-converters and MCU wafers. SkyWater’s purchase of Infineon’s Austin facility unlocked 65 nm production lines dedicated to industrial and aerospace-grade devices. Similar grant schemes in Japan and Germany incentivized legacy-node expansions, stabilizing the industrial integrated circuits market against future allocation shocks.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Acute Shortages of 8-Inch Foundry Capacity Restricting Supply of Legacy Analog and Mixed-Signal Nodes | -1.4% | Global, most severe in Asia-Pacific | Short term (≤ 2 years) |
| Escalating Clean-Room and EUV Tool Costs Elevating Entry Barriers for New Industrial IC Vendors | -0.8% | Global, concentrated in advanced node facilities | Long term (≥ 4 years) |
| Extended Qualification Cycles in Industrial OEMs Slowing Uptake of Latest Process Nodes | -0.7% | Global, most pronounced in automotive and aerospace | Medium term (2-4 years) |
| Geopolitical Export Controls on Advanced Semiconductor Equipment Disrupting Cross-Regional Supply Chains | -0.9% | Global, concentrated in the US-China trade corridors | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Acute Shortages of 8-Inch Foundry Capacity Restricting Supply of Legacy Analog and Mixed-Signal Nodes
Demand for mature-node analog and power devices outpaced incremental capacity, stretching lead times for power-management ICs to as long as 40 weeks in 2025. Foundries prioritized more lucrative 300 mm ramps, leaving industrial customers exposed to allocation shortfalls. ABB and Siemens reported delayed variable-speed-drive shipments, prompting redesigns around multi-source footprints and multi-year supply agreements that locked in higher unit prices. STMicroelectronics responded by announcing 200 mm silicon-carbide wafer lines coming online in late 2025 to alleviate pinch points.
Escalating Clean-Room and EUV Tool Costs Elevating Entry Barriers for New Industrial IC Vendors
A single High-NA EUV scanner exceeded USD 380 million, shifting capital budgets toward incumbents and lengthening payback periods beyond 10 years. Even though industrial integrated circuits rarely demand EUV lithography, the scarcity of conventional steppers and inflation in clean-room construction raised wafer-cost floors across all nodes. Emerging fabless firms developing low-volume ASICs struggled to secure slotting, funneling design activity toward multi-project wafers and licensed core platforms. The resulting consolidation tempered the entry of niche suppliers and overall competitiveness.
Segment Analysis
By IC Type: Analog Dominance Faces Microcontroller Disruption
Analog devices secured 34.2% of 2024 revenue, underpinning power regulation, sensor conditioning, and isolation circuits at the heart of factory and process automation. The industrial integrated circuits market benefited from rising sensor counts per asset, thereby expanding demand for precision op-amps, ADCs, and gate drivers. Tier-one vendors lengthened longevity commitments to 15 years, addressing OEM concerns over field-service continuity.
Microcontrollers are projected to post an 8.5% CAGR, the highest among micro-class devices, as edge AI inference migrates onto local cores with integrated DSP blocks. The industrial integrated circuits market size for microcontrollers is forecast to reach USD 19.10 billion by 2030, representing 22.5% of the total value. Hybrid MCU-plus-FPGA architectures emerged in robotics and inspection cameras, balancing deterministic control with machine-vision acceleration. Memory elements, although smallest in value, gained visibility through embedded MRAM that shortens write cycles and eliminates external EEPROM, enhancing functional-safety diagnostics.[2]StockTitan, “Revolutionary: NXP’s New Auto Chip Delivers 15x Faster Performance,” stocktitan.net
By Function: Power-Management Leadership Challenged by Sensor-Interface Growth
Power-management ICs held a 35.1% share in 2024 on the back of electrification in motion control, traction inverters, and battery management systems. Wide-bandgap GaN stages delivered >98% efficiency in data-center rectifiers introduced by Texas Instruments in March 2025. Energy storage integrators favored multichip modules combining FET drivers, current sensing, and protection logic, lowering PCB count by 25%.
Sensor-interface ICs are on track for a 9.3% CAGR, outpacing all other functional groups. Predictive-maintenance programs in rotating equipment consume high-gain analog front-ends able to digitize low-level vibration signatures at 24-bit resolution. The industrial integrated circuits market share of sensor-interface chips is expected to climb to 18.6% by 2030, driven by built-in AI accelerators that compress edge analytics workloads.
By Technology Node: Legacy Nodes Persist Despite Advanced Process Adoption
Devices manufactured on ≥45 nm geometries represented 50.4% of 2024 shipments, reflecting OEM preference for stable processes with extensive qualification records. Qualification roadmaps in defense and aerospace still mandate up to 20-year availability, reinforcing mature node demand.
Advanced processes ≤10 nm are forecast to expand at a 10.1% CAGR as machine-vision systems require high-TOPS neural engines. The industrial integrated circuits market size for ≤10 nm devices is projected to capture USD 9.80 billion by 2030. STMicroelectronics’ selection of 18 nm FD-SOI for mixed-signal MCUs illustrates selective migration where power efficiency outweighs die cost. Intermediate 22-32 nm nodes serve real-time Ethernet switches and motor-control DSPs that balance cost and frequency.
By End-Use Industry: Factory Automation Leads While IoT Segments Accelerate
Factory automation retained a 28.3% share in 2024 as PLCs, servo drives, and HMI panels incorporated more silicon per unit to support real-time analytics and cybersecurity. Automotive assembly lines adopted vision-guided robots requiring specialized 60 GHz radar sensors released by Texas Instruments in January 2025.
Industrial IoT devices and gateways deliver the highest 11.5% CAGR, aided by Ethernet-APL and 5G campus networks. The industrial integrated circuits market size attributed to gateways is forecast to hit USD 11.20 billion by 2030. Energy infrastructure applications gained traction through SiC-based HVDC converters, while industrial transportation embraced on-board chargers integrating AC/DC and DC/DC stages within compact traction inverters.
Geography Analysis
Asia-Pacific carried 64.6% revenue share in 2024, underpinned by China’s localization agenda and Taiwan’s foundry dominance. Local subsidies financed 28 new fabs breaking ground between 2024-2025, expanding front-end capacity across 65 nm to 14 nm tiers. Japanese consortia channelled capital into power-device fabs tailored for renewable-energy inverters, while South Korean IDMs leveraged existing DRAM lines to fabricate industrial sensor hubs. Edge-AI camera modules built in Shenzhen adopted heterogeneous SiP packaging to compress thermal footprints.
North America ranked second by value and benefited from an unprecedented wave of reshoring. Texas Instruments’ USD 30 billion Sherman campus is committed to four 300 mm lines focused on analog and embedded products, with first silicon expected in 2026.[3]Texas Instruments, “Texas Instruments Announces Award Agreement for CHIPS and Science Act Funding,” ti.com SkyWater’s expansion at the former Infineon Austin site added trusted-foundry capacity for aerospace ASICs. Mexico emerged as a near-shoring hub for electronics system integrators, stimulating local demand for rugged sensor-interface ICs in medical device assembly.
Europe posted steady growth, anchored by Germany’s automotive electrification needs and France’s avionics programs. The EUR 43 billion (USD 50.62 billion) Chips Act earmarked incentives for analog mixed-signal fabs, seeking to mitigate supply risks exposed during 2021-2022 shortages. Nordic infrastructure-grid upgrades accelerated the procurement of HVDC control silicon. Eastern European EMS providers ramped up board-level assembly for PLCs, relying on long-life-cycle components procured through allocation contracts to soften lingering 8-inch scarcity.
Competitive Landscape
Competitive intensity remained moderate but rising as catalog analog specialists contended with system-on-chip integrators and ASIC design houses. Texas Instruments, Analog Devices, Infineon, onsemi, and Microchip dominated power and signal-chain revenues through in-house wafer capacity and broad field-application engineering networks. Infineon’s USD 830 million GaN Systems acquisition plugged a technology gap in low-voltage converters serving data-center power shelves.
Vertically integrated strategies gained ground. onsemi committed USD 2 billion to a Czech SiC facility, while Microchip slated USD 880 million for Colorado Springs to de-risk raw wafer supply. Design-service firms offered turnkey ASICs that bundle firmware and safety certifications, targeting robotics and process-safety niches. Patent filings for industrial semiconductor IP expanded 23% year-on-year after 2024, with concentration in redundant fail-safe topologies and low-latency AI co-processors.[4]IEEE, “Heterogeneous Integration Roadmap 2021,” ieee.org
Emerging challengers exploited advanced packaging to bypass wafer-fab entry barriers. Heterogeneous SiP modules combined RF, logic, and power dies, shortening time-to-market for 5G sensors without full node migration. OEMs placed growing emphasis on software ecosystems and cybersecurity certification, elevating suppliers that deliver secure bootloaders and over-the-air patch frameworks alongside silicon. Export-control regimes split the market into parallel technology stacks, compelling global vendors to maintain duplicate bill-of-materials for Western and Chinese customer bases.
Industrial Integrated Circuits Industry Leaders
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Texas Instruments Inc
-
Analog Devices Inc
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Infineon Technologies AG
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STMicroelectronics N.V.
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Microchip Technology Inc
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Texas Instruments introduced the TPS1685 48 V hot-swap eFuse and GaN power stages exceeding 98% efficiency in data-center power solutions.
- February 2025: SkyWater Technology finalized the acquisition of Infineon’s 200 mm Austin fab to bolster U.S. foundry capacity for 130-65 nm industrial ICs.
- February 2025: 3M joined the US-JOINT Consortium and opened a semiconductor R&D site in Silicon Valley.
- January 2025: onsemi acquired Qorvo’s SiC JFET portfolio for USD 115 million, broadening its EliteSiC platform for industrial traction inverters.
Global Industrial Integrated Circuits Market Report Scope
Integrated circuits (ICs) serve as the essential building blocks of electronic devices, consisting of a network of interconnected transistors, resistors, and capacitors. These elements are meticulously constructed on a thin layer of semiconductor material, usually silicon, resulting in a compact chip or wafer.
The study tracks the revenue accrued through the sale of industrial ICs by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The industrial integrated circuits market is segmented by type (analog IC, logic IC, memory, and micro (microprocessors, microcontrollers, and digital signal processors) and by geography (United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for the abovementioned segments.
| Analog | |
| Logic | |
| Memory | |
| Micro | Microprocessors (MPU) |
| Microcontrollers (MCU) | |
| Digital Signal Processors (DSP) |
| Power-Management ICs |
| Signal-Processing ICs |
| Sensor-Interface ICs |
| Communication-Interface ICs |
| ≥45 nm |
| 22 – 32 nm |
| 14 – 16 nm |
| ≤10 nm |
| Factory Automation |
| Process Automation (Oil-&-Gas, Chemicals, Mining) |
| Energy and Power Infrastructure |
| Industrial Transportation (Rail, Marine, Heavy Vehicles) |
| Building and HVAC Automation |
| Healthcare and Medical Equipment |
| Industrial IoT Devices and Gateways |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| France | ||
| United Kingdom | ||
| Nordics | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Taiwan | ||
| South Korea | ||
| Japan | ||
| India | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Mexico | ||
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Rest of Africa | ||
| By IC Type | Analog | ||
| Logic | |||
| Memory | |||
| Micro | Microprocessors (MPU) | ||
| Microcontrollers (MCU) | |||
| Digital Signal Processors (DSP) | |||
| By Function | Power-Management ICs | ||
| Signal-Processing ICs | |||
| Sensor-Interface ICs | |||
| Communication-Interface ICs | |||
| By Technology Node | ≥45 nm | ||
| 22 – 32 nm | |||
| 14 – 16 nm | |||
| ≤10 nm | |||
| By End-Use Industry | Factory Automation | ||
| Process Automation (Oil-&-Gas, Chemicals, Mining) | |||
| Energy and Power Infrastructure | |||
| Industrial Transportation (Rail, Marine, Heavy Vehicles) | |||
| Building and HVAC Automation | |||
| Healthcare and Medical Equipment | |||
| Industrial IoT Devices and Gateways | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| France | |||
| United Kingdom | |||
| Nordics | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Taiwan | |||
| South Korea | |||
| Japan | |||
| India | |||
| Rest of Asia-Pacific | |||
| South America | Brazil | ||
| Mexico | |||
| Argentina | |||
| Rest of South America | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the industrial integrated circuits market?
The market generated USD 61.50 billion in 2025 and is projected to climb to USD 84.70 billion by 2030 at a 6.61% CAGR.
Which region holds the largest share of industrial integrated circuits sales?
Asia-Pacific accounted for 64.6% of global revenue in 2024, supported by extensive manufacturing infrastructure and localization programs.
Which product segment is expanding the fastest?
Microcontrollers are expected to post the highest 8.5% CAGR to 2030 due to rising edge-AI content in smart-factory equipment.
How are government incentives influencing supply chains?
CHIPS-style legislation in the United States, European Union, and Japan is underwriting new fabs at mature and advanced nodes, reinforcing regional self-sufficiency and reshaping sourcing strategies.
Why are legacy process nodes still dominant in industrial applications?
OEMs prioritize long-term reliability and qualification histories, making ≥45 nm technologies preferable for safety-critical systems despite limited 8-inch capacity.
What is the outlook for power-management ICs?
Power-management devices held a 35.1% share in 2024 and remain pivotal as electrification in heavy equipment and energy infrastructure accelerates.
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