Europe Semiconductor Market Share, Size, Trends and Growth Report 2025

by Market Insights
Posted: Nov 23, 2025

Market Overview

The Europe semiconductor market reached a size of USD 126.3 Billion in 2024 and is projected to grow to USD 217.1 Billion by 2033. The market is expected to expand at a CAGR of 5.7% during the forecast period from 2025 to 2033. Growth is driven by advancements in 5G, IoT, AI technologies, rising automotive and consumer electronics demand, and substantial investments in R&D.

Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Europe Semiconductor Market Key Takeaways

Current Market Size: USD 126.3 Billion in 2024
CAGR: 5.7%
Forecast Period: 2025-2033
The rapid deployment of 5G networks is fueling demand for advanced semiconductor components across infrastructure and devices.
The automotive segment is expanding due to the growing electric vehicle market and autonomous driving technologies.
Increased adoption of IoT devices and AI applications is creating a significant demand for specialized semiconductor chips.
Industrial digitization and automation under Industry 4.0 initiatives are driving semiconductor use in manufacturing.
Countries like Germany, France, and the UK are key markets due to their strong automotive, aerospace, and technology sectors.

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Market Growth Factors

According to SEMI, growth in the European semiconductor market is driven by 5G. In the EU region, 72% of the population can access 5G services, with 256,074 base stations operating by the end of 2021, increasing demand for high speed data processing equipment, and semiconductor content per device. This trend is further supported by the European Commission with 700 million euros allocated to public-private partnerships working on 5G research and innovation and the increasing penetration of Internet of things (IoT) devices, with 48% of large enterprises and 26% of small enterprises using them in 2021.

Rapidly expanding automotive industry is one of the main factors driving the market growth. In the European Union (EU), new electric car and van registrations grew 21.6% in 2022 to around 2 million. Since 2025, car and van CO2 emissions targets call for an unprecedented 15% cut in emissions which will further accelerate the uptake of EVs. Further to this, semiconductors will play a critical role in automotive for battery management, power electronics, inverters and driver assistance (ADAS) to improve performance and autonomy.

Consumer electronics are a major driver for growth. The European smartphone market is expected to expand at a 1.5% CAGR during 2024-2032, toward increased demand for specialized processors, memory solutions, and power management semiconductors. Specialist semiconductor components grow because wearable devices such as smartwatches and fitness trackers gain popularity.

Market Segmentation

Breakup by Components:

Memory Devices: Essential for data storage across industrial systems and consumer electronics, driven by big data analytics and cloud computing needs.
Logic Devices: Includes processors and programmable logic devices used in consumer electronics and industrial machinery, vital for AI, ML, and IoT applications.
Analog IC: Used for managing real-world signals, crucial in automotive power management, telecommunications, and medical devices.
MPU (Microprocessor Units): Drivers of device functionality, expanding due to increased complexity in consumer devices and data centers.
Discrete Power Devices: Key in power supply, electric vehicles, and renewable energy systems, growing with Europe’s transition to electric transportation.
MCU (Microcontroller Units): Control embedded systems in smart homes, industrial automation, and IoT, supporting smart cities and connected infrastructure.
Sensors: Detect physical variables like temperature and motion, seeing increased demand from IoT, smart homes, and industrial automation.
Others

Breakup by Material Used:

Silicon Carbide: Preferred for power electronics due to high thermal conductivity and temperature resistance, boosted by EV and renewable energy demand.
Gallium Manganese Arsenide: Important for spintronics research and spin-based transistors, fostering innovation in low-power electronics.
Copper Indium Gallium Selenide: Used in thin-film solar cells, driven by Europe’s focus on renewable energy and sustainability.
Molybdenum Disulfide: An emerging material for next-gen electronics with high electron mobility and direct bandgap, explored for low-power devices.
Others

Breakup by End User:

Automotive: Dominates market share due to EVs, HEVs, and ADAS applications, including battery management and connectivity solutions.
Industrial: Encompasses automation, robotics, and smart manufacturing, supported by Industry 4.0 digital integration.
Data Center: Growing due to cloud computing, big data, AI, and edge computing demands requiring high-performance semiconductors.
Telecommunication: Influenced by 5G deployment requiring semiconductors for base stations and network equipment.
Consumer Electronics: Driven by demand for smartphones, tablets, wearables, and smart home devices needing advanced semiconductor solutions.
Aerospace and Defense: Requires high-reliability semiconductors for communications, radar, avionics, and UAV technologies.
Healthcare: Uses semiconductors in medical imaging, monitoring, wearables, and telemedicine applications.
Others

Breakup by Country:

Germany: Market growth fueled by automotive industry, manufacturing sector, and Industry 4.0 initiatives.
France: Growth supported by aerospace, defense, telecommunications sectors, and 5G investments.
United Kingdom: Driven by strong technology sector, research institutions, and EV/autonomous vehicle development.
Italy: Growing through diverse industrial base and increased IoT adoption.
Spain: Emerging market boosted by telecommunications growth and renewable energy initiatives.
Others

Regional Insights

Germany is a dominant market in Europe due to its robust automotive sector, advanced manufacturing, and Industry 4.0 adoption. The country’s investments in electric vehicles and autonomous driving technologies significantly contribute to semiconductor demand. Alongside Germany, France and the United Kingdom are key regional markets with strong aerospace, defense, telecommunication, and technology sectors supporting substantial growth in the semiconductor market.

Recent Developments & News

In December 2023, Intel Corporation and Siemens AG signed a memorandum of understanding (MoU) to enhance semiconductor manufacturing efficiency and sustainability. In February 2024, Micron began mass production of its high-bandwidth memory (HBM) semiconductors for Nvidia’s latest artificial intelligence chips. These developments highlight industry collaboration and innovation to meet growing demands.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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