Industrial Semiconductors

Global Industrial Semiconductors Market to Reach US$171.3 Billion by 2030

The global market for Industrial Semiconductors estimated at US$87.5 Billion in the year 2024, is expected to reach US$171.3 Billion by 2030, growing at a CAGR of 11.8% over the analysis period 2024-2030. Manufacturing, one of the segments analyzed in the report, is expected to record a 11.7% CAGR and reach US$55.6 Billion by the end of the analysis period. Growth in the Automotive segment is estimated at 13.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$23.6 Billion While China is Forecast to Grow at 10.8% CAGR

The Industrial Semiconductors market in the U.S. is estimated at US$23.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$25.9 Billion by the year 2030 trailing a CAGR of 10.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.7% and 9.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.3% CAGR.

Global Industrial Semiconductors Market - Key Trends and Drivers Summarized

Industrial semiconductors are pivotal in driving the technological capabilities of modern electronic devices and systems across various sectors. These components are critical in the functionality and connectivity of almost every electronic device, underpinning the performance of smartphones, home appliances, and automotive systems alike. Semiconductors manage electric currents effectively thanks to their unique electrical conductivity, situated between that of a conductor and an insulator. The evolution of these devices began with the development of the semiconductor transistor in 1947, marking the commencement of miniaturized electronic circuits and leading to the widespread use of microchips. These chips are now foundational to numerous technologies, embedded with complex arrays of transistors and resistors that facilitate key functions such as computation, memory storage, and signal amplification.

The semiconductor industry has seen substantial growth driven by the continuous demand for these microchips, which are manufactured in the billions annually to meet global needs. However, despite the natural abundance of silicon—the primary material used in semiconductor production—a supply shortage has emerged, heavily impacting industries such as automotive manufacturing. This shortage results from a combination of factors that have accumulated over time, posing significant challenges for manufacturers and industries that depend heavily on these components. As a response, stakeholders across the sector are engaged in strategic efforts to mitigate these shortages and stabilize supply to sustain the ongoing demand for semiconductors in various applications.

Several growth drivers are propelling the expansion of the industrial semiconductor market. Technological advancements in semiconductor manufacturing enhance the performance and functionalities of industrial applications, driving broader adoption. The increasing automation in industries, aimed at boosting productivity and reducing costs, relies heavily on semiconductors for efficient operation of systems like robots and automated controls. Additionally, the rise of the Internet of Things (IoT) necessitates semiconductors for enabling device connectivity, crucial for smart factories and interconnected industrial setups. Stricter energy efficiency regulations also push industries to adopt semiconductors for better energy management. Moreover, advancements in power electronics and the robustness required for semiconductors in harsh environments underline their indispensability in high-power applications and sectors such as mining and heavy machinery. The demand for smart manufacturing and the expansion of wireless communication networks further emphasize the critical role of semiconductors in modern industrial operations, ensuring ongoing innovation and efficiency enhancements.

SCOPE OF STUDY:

The report analyzes the Industrial Semiconductors market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Application (Manufacturing, Automotive, Construction, Aerospace, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 57 Featured) -

• ABB Ltd.
• Analog Devices Inc.
• Fuji Electric Co. Ltd.
• Infineon Technologies AG
• Intel Corporation
• Maxim Integrated Products Inc.
• Microchip Technology Inc.
• Micron Technology Inc.
• Microsemi Corporation
• Nichia Corporation
• NXP Semiconductors N.V.
• ON Semiconductor Corporation
• Panasonic Semiconductor Solutions Co. Ltd.
• Renesas Electronics Corporation
• STMicroelectronics
• Teledyne e2v (UK) Ltd.
• Texas Instruments Inc.
• Toshiba Corporation
• Xilinx Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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