Industrial Semiconductor Market Size and Share

Industrial Semiconductor Market Summary
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Industrial Semiconductor Market Analysis by Mordor Intelligence

The industrial semiconductor market size stands at USD 98.55 billion in 2025 and is projected to reach USD 137.26 billion by 2030, registering a 6.85% CAGR over the forecast period. Expanding investments in factory automation, rapid uptake of on-device AI inference, and sovereign incentives that localize production capacity continue to lift demand for high-performance logic, power, and sensing devices across all regions. Semiconductor content per automated production line rose 40% since 2020, reflecting the shift toward predictive maintenance, real-time optimization, and distributed intelligence architectures that call for latency below 10 milliseconds at the factory edge. The industrial semiconductor market now finds growth opportunities in wide-bandgap materials such as SiC and GaN that improve energy efficiency, as well as in newer chiplet architectures that streamline heterogeneous integration. Rising geopolitical scrutiny, evidenced by the CHIPS and Science Act’s USD 52.7 billion program and Asia-Pacific’s multi-billion-dollar capacity expansions, underpins a bipolar supply chain that reduces single-point-of-failure risk while increasing redundancy costs.[1]U.S. Department of Commerce, “CHIPS for America Proposed Funding Sites,” nist.gov

Key Report Takeaways

  • By device type, integrated circuits led with 55.21% of the industrial semiconductor market share in 2024. By device type, sensors and MEMS are set to advance at a 9.67% CAGR through 2030.  
  • By business model, the IDM segment retained 54.00% share of the industrial semiconductor market size in 2024, while design-house and fabless vendors are forecast to grow at 10.21% CAGR to 2030.  
  • By end-user industry, factory automation and robotics accounted for a 32.00% slice of the industrial semiconductor market size in 2024; industrial IoT devices represent the fastest-rising end-use group at an 8.94% CAGR toward 2030. 

Segment Analysis

By Device Type: Integrated circuits sustain leadership while sensors surge

Integrated circuits held 55.21% of the industrial semiconductor market share in 2024, supported by single-chip PLCs, AI accelerators, and motor-control MCUs that centralize functions once spread across discrete logic. Within this group, the industrial semiconductor market size for power management ICs exceeded USD 30 billion as of 2025. Chiplet packaging lets designers pair leading-edge compute tiles with mature-node analog dies in one module, balancing performance and cost. Adoption of neuromorphic processors such as Syntiant’s NDP120 signals demand for ultra-low-power analytics at the edge, where milliwatt envelopes are essential for battery-operated sensors.

Sensors and MEMS stand out with a 9.67% CAGR to 2030, fuelled by Industry 4.0 compliance and regulatory pushes for predictive maintenance. Pressure, vibration, and time-of-flight sensors mount directly on machines and stream real-time condition data to edge gateways. LoRa and 5G connectivity combined with on-sensor AI cuts cloud bandwidth by up to 85%, saving recurring costs. Optoelectronics benefit from machine-vision proliferation in quality inspection, while discrete such as SiC MOSFETs gain share inside high-frequency drives that target 98% efficiency. Overall, device diversification supports steady expansion of the industrial semiconductor market.

Industrial Semiconductor Market: Market Share by Device Type
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By Business Model: Design houses capture growth momentum

IDM companies held 54.00% of the industrial semiconductor market in 2024, underpinned by complete control of wafer, packaging, and software stacks that appeal to safety-critical sectors. However, fabless and design-only firms grow faster at 10.21% CAGR because they sidestep USD 20-30 billion fab investments and instead focus on differentiated IP. Partnerships such as Femtosense and ABOV demonstrate co-development workflows where chiplets from multiple vendors integrate seamlessly, shortening product cycles from years to months. Emerging chiplet marketplaces foster interoperability, reinforcing the asset-light model’s appeal.

At the same time, geopolitical stress drives some fabless firms to sign multi-sourced foundry agreements that include domestic fabs despite higher cost. IDMs respond by spinning off foundry units to monetize excess capacity and by acquiring niche players, exemplified by Infineon’s GaN Systems deal, to expand into fast-growing wide-bandgap sectors. This hybridization blurs traditional boundaries yet preserves a balanced competitive field within the industrial semiconductor market.

Industrial Semiconductor Market: Market Share by Business Model
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By End-user Industry: Industrial IoT devices accelerate adoption

Factory automation and robotics represented 32.00% of the industrial semiconductor market size in 2024, powered by cobots, servo drives, and human-machine interface panels that embed high-accuracy motor-control and AI vision. Energy and power infrastructure increasingly incorporates smart-grid controllers built on SiC power modules that manage bi-directional flows from renewable sources. Automotive and transportation segments deploy industrial-grade MCUs in electric buses and heavy-duty trucks, where semiconductor content per vehicle tripled since 2020.

Industrial IoT devices exhibit the highest growth at 8.94% CAGR, reflecting the migration of analytics to edge nodes for latency and bandwidth efficiency. Healthcare equipment adds demand for high-reliability ASICs that meet IEC 60601 standards, whereas aerospace and defense command premium prices for radiation-hardened parts. Showcase implementations such as Bosch Dresden’s 10,000-sensor smart fab prove that semiconductor manufacturing itself is a prime use case for edge intelligence. Collectively, these applications reinforce the robust outlook for the industrial semiconductor market.

Geography Analysis

Asia-Pacific retained 34.26% of the industrial semiconductor market share in 2024 and grows fastest at 8.45% CAGR to 2030. China’s USD 143 billion capacity push emphasizes mature nodes and power discretes, while South Korea’s USD 471 billion Gyeonggi cluster integrates fab, packaging, and research. Taiwan’s TSMC maintains technology leadership and is also investing USD 65 billion in three Arizona fabs, underscoring a dual-continent strategy that hedges geopolitical exposure. Japan’s Rapidus aims for 2 nm production by 2027 with USD 13 billion backing, reinforcing the region’s vertical ecosystem.

North America’s renaissance gains momentum from the CHIPS and Science Act’s USD 52.7 billion incentives that prioritize industrial and automotive nodes. Intel’s USD 20 billion Ohio fabs and GlobalFoundries’ New York expansion focus on 300 mm lines tuned for wide-bandgap devices. Samsung’s USD 37 billion Texas portfolio and Texas Instruments’ USD 30 billion Sherman site establish an integrated corridor from wafer to assembly. While labour costs remain higher than Asia, productivity improvements through automation offset part of the gap.

Europe channels USD 47 billion under the European Chips Act to double its global production share to 20% by 2030. Germany anchors SiC investments, with Infineon spending USD 5 billion to expand in Dresden. Bosch leverages CHIPS Act funds for silicon carbide manufacturing, supporting the continent’s automotive and industrial heritage. Although Europe still depends on Asian foundries for leading-edge logic, it excels in power electronics and energy-efficient solutions, aligning with the EU’s net-zero agenda.[3]European Commission, “European Chips Act Implementation,” europa.eu

Industrial Semiconductor Market CAGR (%), Growth Rate by Region
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Competitive Landscape

Competition in the industrial semiconductor market intensifies as 47 venture-backed entrants secured more than USD 100 million each during 2024. Traditional leaders diversify into SiC and GaN to protect share, evidenced by Infineon’s USD 830 million GaN acquisition. Newcomers exploit advanced packaging to assemble heterogeneous systems without owning leading-edge fabs. Patent filings for power semiconductors surged 340% in 2024, showing an arms race in materials and thermal management.

Vertical integration rises as automotive and industrial OEMs buy semiconductor assets to secure supply. SkyWater’s acquisition of Infineon’s 200 mm Austin fab illustrates the move to control foundational nodes. Established IDMs respond by forming ecosystem partnerships around chiplet standards, while EDA houses such as Synopsys broaden portfolios through high-value acquisitions like Ansys to deliver silicon-to-system platforms. Capital intensity remains a barrier, but design innovation at mature nodes keeps the field moderately fragmented.

Long-term leadership will depend on system-level optimization rather than raw process node supremacy. Vendors capable of integrating sensors, AI accelerators, power stages, and secure connectivity in one package stand to gain. As edge-centric architectures proliferate, the industrial semiconductor market rewards firms that offer turnkey modules over component-only catalogs.[4]IEEE, “Surge in Wide-Bandgap Semiconductor Patents,” ieee.org

Industrial Semiconductor Industry Leaders

  1. Texas Instruments Incorporated

  2. Infineon Technologies AG

  3. Analog Devices, Inc.

  4. STMicroelectronics N.V.

  5. NXP Semiconductors N.V.

  6. *Disclaimer: Major Players sorted in no particular order
Industrial Semiconductor Market Concentration
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Recent Industry Developments

  • April 2025: Infineon Technologies acquired Marvell’s Automotive Ethernet unit for USD 2.5 billion.
  • February 2025: SkyWater Technology bought Infineon’s 200 mm Austin fab, preserving nearly 1,000 jobs.
  • February 2025: 3M joined the US-JOINT Consortium to accelerate advanced packaging.
  • January 2025: ON Semiconductor closed its USD 115 million purchase of Qorvo’s SiC JFET business.

Table of Contents for Industrial Semiconductor Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising demand for industrial automation and robotics
    • 4.2.2 Electrification of heavy-duty equipment and vehicles
    • 4.2.3 Growth in Industry 4.0-driven sensor deployments
    • 4.2.4 Government incentives for energy-efficient power devices
    • 4.2.5 Surging adoption of SiC/GaN power ICs in harsh environments
    • 4.2.6 Emergence of on-device AI inference in factory edge nodes
  • 4.3 Market Restraints
    • 4.3.1 Supply-chain fragility and chip shortages
    • 4.3.2 High capital expenditure for advanced nodes (Less than 7 nm)
    • 4.3.3 Industrial OEM reluctance to re-qualify legacy nodes
    • 4.3.4 Cyber-security liability for connected industrial devices
  • 4.4 Industry Supply Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Bargaining Power of Buyers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Device Type (Shipment Volume for Device Type is Complementary)
    • 5.1.1 Discrete Semiconductors
    • 5.1.1.1 Diodes
    • 5.1.1.2 Transistors
    • 5.1.1.3 Power Transistors
    • 5.1.1.4 Rectifier and Thyristor
    • 5.1.1.5 Other Discrete Devices
    • 5.1.2 Optoelectronics
    • 5.1.2.1 Light-Emitting Diodes (LEDs)
    • 5.1.2.2 Laser Diodes
    • 5.1.2.3 Image Sensors
    • 5.1.2.4 Optocouplers
    • 5.1.2.5 Other Device Types
    • 5.1.3 Sensors and MEMS
    • 5.1.3.1 Pressure
    • 5.1.3.2 Magnetic Field
    • 5.1.3.3 Actuators
    • 5.1.3.4 Acceleration and Yaw Rate
    • 5.1.3.5 Temperature and Others
    • 5.1.4 Integrated Circuits
    • 5.1.4.1 By Integrated Circuit Type
    • 5.1.4.1.1 Analog
    • 5.1.4.1.2 Micro
    • 5.1.4.1.2.1 Microprocessors (MPU)
    • 5.1.4.1.2.2 Microcontrollers (MCU)
    • 5.1.4.1.2.3 Digital Signal Processors
    • 5.1.4.1.3 Logic
    • 5.1.4.1.4 Memory
    • 5.1.4.2 By Technology Node (Shipment Volume Not Applicable)
    • 5.1.4.2.1 Less than 3nm
    • 5.1.4.2.2 3nm
    • 5.1.4.2.3 5nm
    • 5.1.4.2.4 7nm
    • 5.1.4.2.5 16nm
    • 5.1.4.2.6 28nm
    • 5.1.4.2.7 28nm
  • 5.2 By Business Model
    • 5.2.1 Integrated Device Manufacturer (IDM)
    • 5.2.2 Design / Fabless Vendor
  • 5.3 By End-user Industry
    • 5.3.1 Factory Automation and Robotics
    • 5.3.2 Energy and Power
    • 5.3.3 Automotive and Transportation
    • 5.3.4 Aerospace and Defense
    • 5.3.5 Healthcare Equipment
    • 5.3.6 Industrial IoT Devices
    • 5.3.7 Others
  • 5.4 By Region
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.2 South America
    • 5.4.2.1 Brazil
    • 5.4.2.2 Argentina
    • 5.4.2.3 Rest of South America
    • 5.4.3 Europe
    • 5.4.3.1 Germany
    • 5.4.3.2 France
    • 5.4.3.3 United Kingdom
    • 5.4.3.4 Italy
    • 5.4.3.5 Spain
    • 5.4.3.6 Russia
    • 5.4.3.7 Rest of Europe
    • 5.4.4 Asia Pacific
    • 5.4.4.1 China
    • 5.4.4.2 Japan
    • 5.4.4.3 South Korea
    • 5.4.4.4 India
    • 5.4.4.5 ASEAN-5
    • 5.4.4.6 Australia and New Zealand
    • 5.4.4.7 Rest of Asia Pacific
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 Middle East
    • 5.4.5.1.1 Saudi Arabia
    • 5.4.5.1.2 United Arab Emirates
    • 5.4.5.1.3 Turkey
    • 5.4.5.1.4 Rest of Middle East
    • 5.4.5.2 Africa
    • 5.4.5.2.1 South Africa
    • 5.4.5.2.2 Nigeria
    • 5.4.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Analog Devices, Inc.
    • 6.4.2 Infineon Technologies AG
    • 6.4.3 STMicroelectronics N.V.
    • 6.4.4 Texas Instruments Incorporated
    • 6.4.5 NXP Semiconductors N.V.
    • 6.4.6 Renesas Electronics Corporation
    • 6.4.7 ON Semiconductor Corporation
    • 6.4.8 Microchip Technology Inc.
    • 6.4.9 Rohm Co., Ltd.
    • 6.4.10 Vishay Intertechnology, Inc.
    • 6.4.11 Skyworks Solutions, Inc.
    • 6.4.12 Silicon Laboratories Inc.
    • 6.4.13 Semtech Corporation
    • 6.4.14 Power Integrations, Inc.
    • 6.4.15 Teledyne Technologies Inc. (Teledyne e2v)
    • 6.4.16 Littelfuse, Inc.
    • 6.4.17 Maxim Integrated Products, Inc. (ADI)
    • 6.4.18 Melexis NV
    • 6.4.19 Allegro MicroSystems, Inc.
    • 6.4.20 Diodes Incorporated

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Industrial Semiconductor Market Report Scope

By Device Type (Shipment Volume for Device Type is Complementary)
Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits By Integrated Circuit Type Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (Shipment Volume Not Applicable) Less than 3nm
3nm
5nm
7nm
16nm
28nm
28nm
By Business Model
Integrated Device Manufacturer (IDM)
Design / Fabless Vendor
By End-user Industry
Factory Automation and Robotics
Energy and Power
Automotive and Transportation
Aerospace and Defense
Healthcare Equipment
Industrial IoT Devices
Others
By Region
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
France
United Kingdom
Italy
Spain
Russia
Rest of Europe
Asia Pacific China
Japan
South Korea
India
ASEAN-5
Australia and New Zealand
Rest of Asia Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Device Type (Shipment Volume for Device Type is Complementary) Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits By Integrated Circuit Type Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (Shipment Volume Not Applicable) Less than 3nm
3nm
5nm
7nm
16nm
28nm
28nm
By Business Model Integrated Device Manufacturer (IDM)
Design / Fabless Vendor
By End-user Industry Factory Automation and Robotics
Energy and Power
Automotive and Transportation
Aerospace and Defense
Healthcare Equipment
Industrial IoT Devices
Others
By Region North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
France
United Kingdom
Italy
Spain
Russia
Rest of Europe
Asia Pacific China
Japan
South Korea
India
ASEAN-5
Australia and New Zealand
Rest of Asia Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the industrial semiconductor market growth outlook to 2030?

The market is forecast to expand from USD 98.55 billion in 2025 to USD 137.26 billion by 2030, translating to a 6.85% CAGR.

Which region leads in revenue today?

Asia-Pacific holds 34.26% of global revenue thanks to large-scale investments in China, South Korea, Taiwan, and Japan.

Which device category grows fastest?

Sensors and MEMS post the highest growth at 9.67% CAGR, fueled by Industry 4.0 predictive maintenance mandates.

Why are SiC and GaN devices gaining traction?

Wide-bandgap materials deliver 15-20% energy savings and endure temperatures up to +200 °C, making them ideal for harsh industrial environments.

How does government policy affect supply?

Incentives like the U.S. CHIPS and Science Act and the European Chips Act channel more than USD 100 billion into new fabs, reshaping regional supply resilience.

What is the main supply-chain risk?

Dependence on single-source materials such as Spruce Pine quartz and concentrated sub-10 nm production in Taiwan pose continued vulnerability.

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