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Europe Active Electronic Components Market Outlook, 2030

Published Aug 31, 2025
Length 97 Pages
SKU # BORM20367687

Description

The growth of the Active Electronic Component market within Europe indicates its expanding role and applications in sectors like automotive, industrial automation, renewable energy, and medical technology, positioning the area as a key center for innovation and implementation. Traditionally, the European market has relied on its strengths in power electronics and sensor technology, largely because of its leading position in automotive supply and industrial automation. However, it has encountered notable challenges regarding the capacity of large-scale foundries when compared to Asia and North America. To address these structural challenges, Europe has concentrated on developing specialized technologies such as Insulated Gate Bipolar Transistors IGBTs, MOSFETs, and advanced drivers for motors, which are essential for electric vehicles, energy-efficient industrial systems, and stabilizing power grids for sustainable energy. From a technical standpoint, manufacturers in Europe focus on durability, extended lifecycle performance, and high energy efficiency, which make their products suitable for demanding applications, including EV drivetrains, wind and solar power inverters, and hospital-grade medical equipment. These design principles tackle efficiency and longevity challenges while adhering to Europe's strict energy conservation and environmental legislation. Concurrently, the market has accelerated due to extensive research and development funding backed by the EU, industry-led automotive partnerships, and projects driven by the need for semiconductor independence aimed at decreasing dependency on overseas supply chains. Initiatives like the European Chips Act and coordinated research efforts are funneling support towards innovative manufacturing techniques, advanced packaging solutions, and silicon substitutes to enhance Europe’s competitive edge. These elements characterize the active electronic component market in Europe as strategically equipped not only to meet local industry needs with highly reliable components but also to establish a prominent position globally in specialized areas where efficiency, sustainability, and solid engineering are crucial.

According to the research report, ""Europe Active Electronic Component Market Outlook, 2030,"" published by Bonafide Research, the Europe Active Electronic Component market is expected to reach a market size of more than USD 84.07 Billion by 2030. This growth is fueled by strategic changes in the EV supply chain, as European OEMs and Tier-1 suppliers are moving to localize their procurement of power semiconductors, battery management ICs, and high-reliability connectors to meet the electrification goals set by the EU Green Deal. Concurrent fabrication projects such as expansions by Infineon in Austria and STMicroelectronics in Italy and France are enhancing local semiconductor capabilities, while green electronics production is gaining traction under RoHS, REACH, and Ecodesign regulations, promoting the use of recyclable materials, energy-efficient chip designs, and carbon-neutral manufacturing processes. The competitive scene merges specialist semiconductor companies in Europe like Infineon Technologies, STMicroelectronics, and NXP Semiconductors with a strong EMS sector located in Germany, Eastern Europe, and the Nordic countries for example, Zollner Elektronik and Kitron and diversified OEMs across automotive, industrial automation, and energy systems. Opportunities are increasing in EV platforms especially in traction inverters, onboard chargers, and ADAS control units where wide-bandgap devices SiC/GaN offer improved efficiency; in grid-tied inverters and energy-storage interfaces that support Europe’s shift to renewable energy; and in industrial upgrades, where Industry 4.0 innovations require robust controllers, sensors, and connectivity modules. Compliance plays a crucial role as a market driver: RoHS limits hazardous materials to protect the environment; CE marking shows that products meet EU standards for safety and efficacy; adherence to the EMC Directive ensures electromagnetic compatibility in crowded electronic settings; and automotive homologation UNECE regulations, EU type approval verifies the reliability, safety, and interoperability of components in vehicles.

Market Drivers

Automotive Electrification & EV Boom:The automotive industry in Europe is among the largest globally, with Germany, France, and Italy being the top producers and innovators. The European Union has mandated a prohibition on the sale of new internal combustion engine ICE vehicles by 2035, speeding up the transition to electric vehicles EVs, plug-in hybrids PHEVs, and self-driving mobility options. This change necessitates power semiconductors, battery management integrated circuits, microcontrollers, sensors, and communication modules all essential elements of the active electronic component sector. Major European car manufacturers like Volkswagen, BMW, and Stellantis are heavily investing in EV technologies, which require IGBTs and MOSFETs for effective power conversion. The concurrent expansion of charging networks across Scandinavia, Germany, and the UK further increases the demand for active components.
Renewable Energy & Smart Grid Expansion:Europe sets some of the most ambitious renewable energy goals worldwide, with nations like Germany Energiewende, Spain, and Denmark at the forefront of wind and solar energy. This generates substantial requirements for inverters, rectifiers, power integrated circuits, and control systems, which manage and stabilize the integration of renewable energy into power grids. The transition to distributed energy generation and smart grid technologies demands active components that improve energy storage, facilitate two-way power distribution, and decrease transmission losses. For instance, smart meters throughout the UK and Italy utilize microcontrollers and communication chips. Furthermore, battery energy storage systems BESS in solar installations depend on SiC-based components to increase efficiency.

Market Challenges


Dependence on Non-European Foundries:Despite Europe's strengths in designing automotive-grade semiconductors and power electronics Infineon, STMicroelectronics, NXP, it falls short in having adequate leading-edge fabrication capacity. The majority of chip production occurs in Taiwan TSMC, South Korea Samsung, and the United States Intel, GlobalFoundries. This dependence exposes Europe to geopolitical uncertainties, supply chain disruptions, and natural catastrophes beyond its influence. The semiconductor shortage during 2021–22 severely impacted European automobile manufacturing, with firms like Volkswagen and BMW halting production. Although the EU Chips Act 2022 intends to increase Europe’s semiconductor market share to 20% globally by 2030, progress is slow and requires significant investment.
High R&D and Production Costs: The creation of sophisticated active components especially wide-bandgap semiconductors SiC, GaN, 5G RF chips, and innovative packaging technologies necessitates significant investments, totaling billions in research and development. Companies in Europe encounter elevated labor costs, more stringent regulations, and high energy expenses, which render local manufacturing less appealing compared to Asian markets. Take, for instance, STMicroelectronics and Infineon, which are significantly investing in SiC production, yet they experience slower progress compared to American firms such as Wolfspeed. Smaller businesses and startups find it hard to secure funding to rival advancements in state-of-the-art chip technology.

Market Trends

Emergence of Wide-Bandgap Semiconductors SiC & GaN:The worldwide shift towards high-efficiency energy systems has positioned SiC Silicon Carbide and GaN Gallium Nitride as essential elements in Europe’s active electronic component sector. These substances allow for increased switching speeds, diminished energy wastage, reduced size, and extended durability of devices when compared to conventional silicon. Europe is already integrating SiC into electric vehicle drivetrains, rail systems, and high-voltage renewable energy inverters. Infineon Germany and STMicroelectronics France-Italy are enhancing SiC fabrication facilities to satisfy the demands of automotive and industrial sectors, aided by EU research and development initiatives. GaN is being increasingly used in 5G telecommunications, aerospace, and medical imaging, which aligns with Europe’s initiative for digital independence. This trend underscores how Europe is setting itself up as a front-runner in high-performance, energy-efficient semiconductor technologies.
Expansion of Local Semiconductor Economies:The EU Chips Act, along with national financial programs in Germany, France, and Italy, aims to establish a self-reliant semiconductor economy. Europe is promoting the development of local fabrication plants, advanced packaging facilities, and research and development collaborations to curtail reliance on imports. Initiatives like Intel’s fabrication plant in Germany and STMicroelectronics GlobalFoundries’ facility in France illustrates the momentum towards reshoring. Concurrently, industry-specific collaborations, such as the Automotive Alliance for Semiconductor Sovereignty, are aligning chip development and production with Europe’s strongest sectors. Academic institutions and research organizations in Leuven, Dresden, and Grenoble are fostering partnerships. The trend suggests a transition in Europe from being a disjointed buyer of global semiconductors to a unified ecosystem creator that synchronizes production with priority industries.

The market for active electronic components in Europe is predominantly occupied by semiconductor devices due to their essential function in the electrification of vehicles, automation in industries, and the integration of renewable energy, which directly supports the area's innovation-focused sectors and regulatory emphasis on sustainability.

The segment for semiconductor devices is not only the biggest but also the quickest-growing part of Europe’s active electronic component market. This growth mainly stems from their crucial function in the continent’s key industries like automobile, factory automation, medical fields, aerospace, and renewable energy. The automotive market in Europe, especially in countries such as Germany, France, and Italy, is rapidly moving towards electrification. This transition requires a significant increase in power semiconductors, microcontrollers, IGBTs, MOSFETs, and sensors as electric vehicles EVs, hybrid technologies, and self-driving systems become more common. Moreover, the robust regulatory framework provided by the EU Green Deal and Fit-for-55 program has sped up the implementation of renewable energy. This change has led to a demand for semiconductor-based inverters, controllers, and energy-efficient chips to support solar, wind, and smart grid solutions. Semiconductor devices are being used more frequently in industrial robots, factory automation, and healthcare technology, fields where Europe holds a leading position worldwide. In contrast to passive components or less complex modules, semiconductors provide miniaturization, energy savings, and enhanced computing capabilities, which are vital for fulfilling the growing need for forward-thinking and sustainable systems. The trend towards wide-bandgap semiconductors SiC and GaN is further accelerating development, providing greater efficiency and longevity in areas like EV charging, rail systems, and aerospace. Prominent European companies such as Infineon Technologies, STMicroelectronics, and NXP Semiconductors are not just front-runners in automotive-grade chips but also benefit from EU-backed research and initiatives aimed at semiconductor independence as per the EU Chips Act. These structural benefits ensure that semiconductor devices continue to support Europe’s active electronic component market. Their capacity to scale across various sectors, paired with Europe’s substantial investment in EVs, renewable energy, and digital advancements, positions them as both the largest segment by revenue and the fastest-growing in terms of uptake and technological progress throughout the region.

The fastest-growing user of active electronic components in Europe's market is the automotive industry, spurred by the quick transition to electric vehicles, self-driving technology, and connected cars, all of which rely heavily on sophisticated semiconductors and electronic systems.

The automotive field is currently the quickest expanding consumer category in the active electronic component market in Europe, fueled by the region's forefront position in electric vehicles, intelligent transportation, and strict regulations aimed at reducing emissions. With prominent automotive manufacturers such as Volkswagen, BMW, Mercedes-Benz, Stellantis, and Renault based in Europe, the region is experiencing a significant change due to the EU’s Fit-for-55 climate strategy and the intended ban on internal combustion engine vehicles by 2035. This transition is driving a historic increase in the need for power semiconductors, microcontrollers, sensors, and driver-assistance chips, which form the essential electronic framework for electric vehicles, hybrid setups, and the latest combustion engine technologies. The area's vigorous initiative for self-driving and connected transportation has hastened the use of LiDAR systems, radar sensors, communication technology, and advanced driver-assistance systems ADAS, which all depend on active electronic components to ensure safety, intelligence, and performance. The automotive sector is also utilizing wide-bandgap semiconductors such as silicon carbide SiC and gallium nitride GaN, seeking to improve the efficiency of electric vehicle drivetrains, onboard chargers, and rapid charging facilities, showcasing the technological advancement within Europe’s automotive supply chains. Simultaneously, the incorporation of infotainment, IoT, and telematics systems has led to greater reliance on microprocessors and connectivity chips, broadening demand beyond power electronics into digital and communication spheres. Europe’s automotive environment thrives on robust partnerships among semiconductor leaders like Infineon Technologies, STMicroelectronics, and NXP Semiconductors, alongside EU-funded research and development initiatives that support innovation in mobility electronics. These elements establish the automotive sector as the fastest-growing user of active electronic components in Europe, surpassing industrial, consumer electronics, and healthcare fields. With electric vehicle adoption speeding up, digital advancements transforming vehicles, and regulatory measures promoting sustainable transportation, the automotive sector is poised to drive significant growth in active electronic component needs throughout the region.

The rapid growth of the advanced technology sector in Europe’s active electronic component market is driven by the region’s emphasis on electrification, digitalization, and automation, which necessitates next-generation semiconductors, sensors, and power devices that exceed conventional technology limits.

The advanced technology sector is the most rapidly expanding area within Europe’s active electronic component industry, showcasing the region's evolution into a center for electrification, connectivity, and automation. As Europe speeds up its shift towards renewable energy, intelligent transportation, and Industry 4.0, the need for state-of-the-art semiconductors, powerful integrated circuits ICs, wide-bandgap materials, and AI-enhanced sensors is on the rise. In the automotive field, silicon carbide SiC and gallium nitride GaN semiconductors facilitate quicker charging, greater energy efficiency, and streamlined powertrain structures for electric vehicles, supporting the EU’s goal of achieving carbon-neutral mobility by 2035. Simultaneously, advanced MOSFETs, IGBTs, and motor driver ICs are gaining traction in robotics, industrial automation, and renewable power inverters, reinforcing Europe’s standing in energy efficiency. The healthcare industry also depends on advanced microelectronics to power imaging systems, diagnostics, and portable medical technologies, while the telecom sector relies on high-frequency chips for 5G networks, cloud services, and data facilities. What positions advanced technology as crucial in Europe is not just its impact on performance but also its strategic connection to EU sovereignty initiatives, such as the European Chips Act, which emphasizes domestic innovation and semiconductor independence from global supply chain issues. The utilization of AI, machine learning, and IoT-enabled sensors highlights the reliance on advanced electronic components to support predictive maintenance, connected vehicles, and smart manufacturing environments. Furthermore, advancements in packaging, miniaturization, and enhanced durability of electronics enable European industries to comply with the region’s strict energy efficiency and sustainability standards. With the backing of government-funded partnerships, collaborations among major companies like Infineon, STMicroelectronics, and NXP, and regional research organizations, the advanced technology sector is growing swiftly to become a key pillar of Europe’s economic competitiveness. Europe’s focus on electrification, digitalization, and semiconductor sovereignty guarantees that advanced technology stays the fastest-growing segment in the active electronic component market of the region.

Germany is the top player in the active electronic component market within Europe due to its powerful automotive sector, sophisticated industrial automation foundation, and substantial funding in semiconductor research and production.

Germany stands at the forefront of the active electronic component sector in Europe, primarily fueled by its exceptional automotive sector, industrial automation capabilities, and shift towards renewable energy. The nation hosts some of the biggest automotive brands globally Volkswagen, BMW, and Mercedes-Benz which are swiftly moving towards electric and self-driving technologies, leading to a significant need for high-tech semiconductors, power devices, and sensors. The country’s focus on Industry 4.0 and intelligent manufacturing solutions has accelerated the incorporation of microcontrollers, programmable logic devices, and sophisticated sensors in automation and robotic systems. This blend of automotive and industrial advancements establishes Germany as a key player in the demand and evolution of active electronic components. On the production front, Germany serves as a center for semiconductor research and manufacturing, with firms like Infineon Technologies taking the lead in power electronics, wide-bandgap semiconductors, and vehicle chips. Strong partnerships between academic institutions, Fraunhofer Institutes, and major industries have driven ongoing progress in MOSFETs, IGBTs, and MEMS sensors, ensuring that German technology remains competitively positioned worldwide. The government's backing, through the European Chips Act and national funding initiatives, bolsters Germany’s goal of enhancing local production and decreasing dependence on Asian manufacturers. The country's prominent role in renewable energy endeavors such as wind and solar energy has increased the need for power converters, smart grids, and energy-efficient electronics, further solidifying the market. Germany’s strict adherence to EU environmental and safety regulations also promotes the development of smaller, robust, and energy-efficient electronic components. By blending industrial capacity, research prowess, and supportive policies, Germany not only caters to its own needs but also shapes the wider European approach to electronics and semiconductors, ensuring its leading status in the region's active electronic component market.

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Table of Contents

97 Pages
1. Executive Summary
2. Market Dynamics
2.1. Market Drivers & Opportunities
2.2. Market Restraints & Challenges
2.3. Market Trends
2.4. Supply chain Analysis
2.5. Policy & Regulatory Framework
2.6. Industry Experts Views
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. Market Structure
4.1. Market Considerate
4.2. Assumptions
4.3. Limitations
4.4. Abbreviations
4.5. Sources
4.6. Definitions
5. Economic /Demographic Snapshot
6. Europe Active Electronic Component Market Outlook
6.1. Market Size By Value
6.2. Market Share By Country
6.3. Market Size and Forecast, By Product
6.4. Market Size and Forecast, By End User
6.5. Market Size and Forecast, By Technology
6.6. Germany Active Electronic Component Market Outlook
6.6.1. Market Size by Value
6.6.2. Market Size and Forecast By Product
6.6.3. Market Size and Forecast By End User
6.7. United Kingdom (UK) Active Electronic Component Market Outlook
6.7.1. Market Size by Value
6.7.2. Market Size and Forecast By Product
6.7.3. Market Size and Forecast By End User
6.8. France Active Electronic Component Market Outlook
6.8.1. Market Size by Value
6.8.2. Market Size and Forecast By Product
6.8.3. Market Size and Forecast By End User
6.9. Italy Active Electronic Component Market Outlook
6.9.1. Market Size by Value
6.9.2. Market Size and Forecast By Product
6.9.3. Market Size and Forecast By End User
6.10. Spain Active Electronic Component Market Outlook
6.10.1. Market Size by Value
6.10.2. Market Size and Forecast By Product
6.10.3. Market Size and Forecast By End User
6.11. Russia Active Electronic Component Market Outlook
6.11.1. Market Size by Value
6.11.2. Market Size and Forecast By Product
6.11.3. Market Size and Forecast By End User
7. Competitive Landscape
7.1. Competitive Dashboard
7.2. Business Strategies Adopted by Key Players
7.3. Key Players Market Positioning Matrix
7.4. Porter's Five Forces
7.5. Company Profile
7.5.1. Toshiba Corporation
7.5.1.1. Company Snapshot
7.5.1.2. Company Overview
7.5.1.3. Financial Highlights
7.5.1.4. Geographic Insights
7.5.1.5. Business Segment & Performance
7.5.1.6. Product Portfolio
7.5.1.7. Key Executives
7.5.1.8. Strategic Moves & Developments
7.5.2. Mitsubishi Electric Corporation
7.5.3. NXP Semiconductors N.V.
7.5.4. Infineon Technologies AG
7.5.5. Littelfuse Inc.
7.5.6. Diotec Semiconductor AG
7.5.7. Vishay Intertechnology, Inc.
7.5.8. Renesas Electronics Corporation
7.5.9. Fuji Electric Co., Ltd
7.5.10. Wingtech Technology
7.5.11. Monolithic Power Systems, Inc.
7.5.12. ON Semiconductor Corporation
8. Strategic Recommendations
9. Annexure
9.1. FAQ`s
9.2. Notes
9.3. Related Reports
10 Disclaimer
List of Figures
Figure 1: Global Active Electronic Component Market Size (USD Billion) By Region, 2024 & 2030
Figure 2: Market attractiveness Index, By Region 2030
Figure 3: Market attractiveness Index, By Segment 2030
Figure 4: Europe Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 5: Europe Active Electronic Component Market Share By Country (2024)
Figure 6: Germany Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 7: United Kingdom (UK) Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 8: France Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 9: Italy Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 10: Spain Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 11: Russia Active Electronic Component Market Size By Value (2019, 2024 & 2030F) (in USD Billion)
Figure 12: Porter's Five Forces of Global Active Electronic Component Market
List of Tables
Table 1: Global Active Electronic Component Market Snapshot, By Segmentation (2024 & 2030) (in USD Billion)
Table 2: Influencing Factors for Active Electronic Component Market, 2024
Table 3: Top 10 Counties Economic Snapshot 2022
Table 4: Economic Snapshot of Other Prominent Countries 2022
Table 5: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 6: Europe Active Electronic Component Market Size and Forecast, By Product (2019 to 2030F) (In USD Billion)
Table 7: Europe Active Electronic Component Market Size and Forecast, By End User (2019 to 2030F) (In USD Billion)
Table 8: Europe Active Electronic Component Market Size and Forecast, By Technology (2019 to 2030F) (In USD Billion)
Table 9: Germany Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 10: Germany Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 11: United Kingdom (UK) Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 12: United Kingdom (UK) Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 13: France Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 14: France Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 15: Italy Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 16: Italy Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 17: Spain Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 18: Spain Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 19: Russia Active Electronic Component Market Size and Forecast By Product (2019 to 2030F) (In USD Billion)
Table 20: Russia Active Electronic Component Market Size and Forecast By End User (2019 to 2030F) (In USD Billion)
Table 21: Competitive Dashboard of top 5 players, 2024
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