Industrial Semiconductors Market Size was valued at USD 70.8 Billion in 2022. The Industrial Semiconductors market industry is projected to grow from USD 80.35 Billion in 2023 to USD 221.30 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.50% during the forecast period (2024 - 2032). The integration of AI and ML in industrial processes requires powerful processing units, memory devices, and sensors, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Industrial Semiconductors Market is experiencing a profound surge in demand, primarily propelled by the transformative forces of Industry 4.0 and the Industrial Internet of Things (IIoT). As industries worldwide embrace the paradigm of smart and connected manufacturing, semiconductor technologies are at the forefront of this evolution. The convergence of intelligent automation, data analytics, and real-time connectivity in Industry 4.0 demands sophisticated semiconductor components. These components, ranging from advanced processors and memory units to sensors and communication modules, form the backbone of smart manufacturing systems.
In the IIoT, the Industrial Semiconductors Market plays a pivotal role in enabling seamless communication and integration of devices within industrial ecosystems. The proliferation of sensors and actuators that collect and transmit data in real-time requires robust semiconductor solutions to process and analyze this influx of information. Moreover, as industries strive for increased efficiency, reduced downtime, and predictive maintenance, the demand for high-performance and energy-efficient semiconductors becomes imperative. In essence, Industry 4.0 and IIoT are not just technological trends but powerful catalysts propelling the Industrial Semiconductors Market into a new era of innovation and widespread industrial digitization.
The Industrial Semiconductors Market segmentation, based on type includes single-mode and multi-mode. The single-mode segment dominated the market, accounting for more than half of market revenue. Single-mode industrial semiconductors refer to devices designed to operate within a specific and well-defined frequency range or mode. These semiconductors are optimized for applications that require precision and reliability in a particular operational spectrum. It find applications in scenarios where consistent and specialized performance is crucial. For instance, in industrial settings, single-mode semiconductors may be employed in systems that demand precise control, limited frequency variations, or dedicated functionality.
The multi-mode segment is expected to grow at a highest CAGR. Multi-mode industrial semiconductors are designed to operate across a broader range of frequencies or modes. These versatile components offer flexibility and adaptability, making them suitable for diverse applications and changing operational requirements. It is well-suited for industrial applications characterized by dynamic operational needs. They find use in systems requiring the ability to adjust and switch between different modes to accommodate variations in data transmission, processing, or control functions.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Industrial Semiconductors Market segmentation, based on application includes construction, manufacturing, automotive, aerospace, and others. The automotive segment dominated the market, accounting for more than a quarter of market revenue. The automotive industry heavily relies on industrial semiconductors for advanced driver assistance systems (ADAS), engine control units, in-vehicle infotainment systems, and other electronic components. As the automotive sector undergoes digital transformation, the demand for sophisticated semiconductors continues to rise.
The aerospace segment anticipated to grow at a fastest CAGR during the forecast period. In the aerospace industry, industrial semiconductors play a crucial role in avionics, navigation systems, communication systems, and control systems for both manned and unmanned aerial vehicles. The stringent requirements for reliability and performance drive the adoption of specialized semiconductor solutions.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Industrial Semiconductors market area will dominate this market. The market is driven by the adoption of advanced technologies in sectors such as automotive, aerospace, healthcare, and industrial automation. These semiconductors play a pivotal role in powering smart factories, automation systems, and various industrial applications across the region. The automotive and aerospace industries in North America heavily rely on industrial semiconductors for applications like advanced driver assistance systems (ADAS), in-vehicle electronics, and automation in manufacturing processes.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Industrial Semiconductors market accounts for the second-largest market share. This is due to the Europe is home to some of the world's leading automotive manufacturers. The automotive industry's demand for industrial semiconductors is driven by applications such as engine control units, advanced driver assistance systems (ADAS), and in-vehicle infotainment systems. The adoption of industrial automation solutions, including robotics and control systems, contributes to the demand for industrial semiconductors. Industries in Europe seek to enhance productivity and efficiency through automation technologies. Further, the Germany Industrial Semiconductors market held the largest market share, and the UK Industrial Semiconductors market was the fastest-growing market in the European region
The Asia-Pacific Industrial Semiconductors Market is expected to grow at the fastest CAGR from 2024 to 2032. The Asia-Pacific region is a significant hub for the industrial semiconductors market, driven by the rapid industrialization and technological advancements across various sectors. The demand for industrial semiconductors in Asia-Pacific is influenced by the region's dominance in manufacturing, automotive production, and the adoption of Industry 4.0 and industrial automation. Moreover, China’s Industrial Semiconductors market held the largest market share, and the Indian Industrial Semiconductors market was the fastest growing market in the Asia-Pacific region.
Leading market players invest heavily in research and development to advance and innovate Industrial Semiconductors technologies and techniques. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, clinical integration, customer support and service contracts, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Industrial Semiconductors industry must offer customized solutions.
Companies are forming partnerships with academic and research institutions to gain access to their expertise and share resources for joint research projects in the global Industrial Semiconductors industry to develop novel applications and technologies. In recent years, the Industrial Semiconductors industry has offered some of the most significant advantages to consumers. Major players in the Industrial Semiconductors market, including ABB (Switzerland), KUKA AG (Germany), Mitsubishi Electric Corporation (Japan), FANUC CORPORATION (Japan), Kawasaki Heavy Industries Ltd. (Japan), YASKAWA ELECTRIC CORPORATION (Japan), Seiko Epson Corporation (Japan), Stäubli International AG (Switzerland), and NACHI-FUJIKOSHI CORP (Japan), and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.
KUKA AG, founded in 1898 and headquartered in Augsburg, Germany, is a leading global provider of industrial robotics and automation solutions. Specializing in manufacturing robots and automation systems, KUKA serves diverse industries such as automotive, aerospace, and electronics. The company offers a range of industrial robots, automation systems, and comprehensive support services. With a significant international presence, KUKA is recognized for its innovative contributions to the field of robotics, enhancing manufacturing processes worldwide. In January 2023, KUKA Robotics announced that it will launch several technology related to safely automating manufacturing processes where humans interact with robots on a regular basis including its new LBR iisy cobot, the new KUKA KMP 600-S diffDrive automated mobile platform, and the company’s LBR iiwa robot.
Mitsubishi Electric Corporation, founded in 1921 and headquartered in Tokyo, Japan, is a global leader in electrical and electronic equipment. The company operates across multiple sectors, including industrial automation, energy systems, electronic devices, and home appliances. Mitsubishi Electric is renowned for its innovative technologies, providing solutions in areas such as air conditioning, elevators, factory automation, and automotive equipment. With a commitment to sustainability and cutting-edge advancements, the company contributes to the evolution of smart societies. In November 2023, Mitsubishi Electric Corporation partnered with Nexperia B.V. to develop silicon carbide (SiC) power semiconductors for the power electronics sector. Mitsubishi Electric will use its wide-bandgap semiconductor technology to manufacture and deliver SiC MOSFET chips for Nexperia to work in the development of SiC discrete devices.
August 2023: Rajasthan-based Sahasra Semiconductor announced that it will start the commercial production of first made-in-India memory chips. The company has set up its semiconductor assembly, packaging and test unit in Bhiwadi district from where it will primarily package basic memory products such as chip-on-board, and MicroSD cards, and will later move on to advanced packaging of products like internal memory chips.
October 2023: Welsh startup Space Forge announced that it will prepare its semiconductor manufacturing satellite into orbit. ForgeStar-1 satellite will be launched from the US that contains an automated chemistry lab that enables the remote mixing of chemical compounds and the development of semiconducting alloys.
March 2023: India 10 signed a Memorandum of Understanding (MoU) with the U.S. that will pave the way for producing a Semiconductor Sub-Committee under the Commercial Dialogue.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 70.8 Billion |
| Market Size 2023 | USD 80.35 Billion |
| Market Size 2032 | USD 221.30 Billion |
| Compound Annual Growth Rate (CAGR) | 13.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | ABB (Switzerland), KUKA AG (Germany), Mitsubishi Electric Corporation (Japan), FANUC CORPORATION (Japan), Kawasaki Heavy Industries Ltd. (Japan), YASKAWA ELECTRIC CORPORATION (Japan), Seiko Epson Corporation (Japan), Stäubli International AG (Switzerland), and NACHI-FUJIKOSHI CORP (Japan) |
| Key Market Opportunities | · The integration of AI and ML in industrial processes requires powerful processing units, memory devices, and sensors, driving the demand for advanced semiconductor technologies. · The automotive industry's shift towards electric and hybrid vehicles is increasing the demand for power semiconductors, microcontrollers, and sensors to enable the electrification of vehicles and enhance automotive electronics. |
| Key Market Dynamics | · As industries seek more energy-efficient solutions, there is a growing demand for power electronic components such as power semiconductors. These are essential for applications like motor drives, renewable energy systems, and power supplies. · Industries are increasingly adopting automation to enhance efficiency, reduce costs, and improve overall productivity. This trend demands sophisticated semiconductor solutions for motor control, sensing, and communication in automated systems. |
Frequently Asked Questions (FAQ) :
The Industrial Semiconductors Market size was valued at USD 70.8 Billion in 2022.
The global market is projected to grow at a CAGR of 13.50% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are ABB (Switzerland)KUKA AG (Germany)Mitsubishi Electric Corporation (Japan)FANUC CORPORATION (Japan)Kawasaki Heavy Industries Ltd. (Japan)YASKAWA ELECTRIC CORPORATION (Japan)Seiko Epson Corporation (Japan)Stäubli International AG (Switzerland)NACHI-FUJIKOSHI CORP (Japan).
The single-mode type dominated the market in 2022.
Automotive had the largest share in the global market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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