Market Overview

The Europe semiconductor market size was USD 133.61 Billion in 2025 and is expected to reach USD 217.23 Billion by 2034, growing at a CAGR of 5.55% from 2026 to 2034. The market growth is driven by rising demand for advanced electronics in automotive, consumer electronics, and telecommunications, fueled by the deployment of 5G networks, proliferation of IoT, and adoption of AI. Electric vehicle transition and autonomous driving technologies are also increasing semiconductor demand across the region.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Europe Semiconductor Market Key Takeaways

• The Europe semiconductor market size was valued at USD 133.61 Billion in 2025.
• The market is expected to grow at a CAGR of 5.55% from 2026-2034.
• Forecast period of the study is 2026-2034.
• Logic devices dominate the components segment with a 21% market share in 2025.
• Silicon carbide leads the material used segment with 30% share in 2025.
• Consumer electronics is the largest end-user segment with 62.24% market share in 2025.
• Germany leads the regional market with a 25% share in 2025.

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Market Growth Factors

The electrification of transport is a growth driver for the Europe semiconductor market due to the proliferation of semiconductors in electric vehicles compared to conventional internal combustion cars, and the need for advanced power electronics, battery management, motor controllers and thermal management. In 2025, Volkswagen Group and Rivian jointly procured over 50 semiconductors for future EV applications, seen as a way to improve supply chain resiliency. Each EV platform requires multiple power semiconductors, sensors and microcontrollers.

The second major growth driver is the roll out of 5G (fifth-generation) telecommunications infrastructure in Europe. Base stations require radio frequency power amplifiers, digital signal processors and beamforming integrated circuits to enable higher data bandwidths and lower latencies. For networking infrastructure, high-performance semiconductors are required for computation, memory, and communication. 5G-connected devices also require modem chipsets radio frequency RF front-end modules and antenna tuning components. Small cell buildouts require far more semiconductor components within telecom infrastructure.

Industrial automation and digital transformation in manufacturing leverage semiconductors for robotics, precision motion controls, and machine vision systems. As manufacturers adopt AI and machine vision, industrial design for processors, analog interfaces, power management, and connectivity devices is required. Industrial IoT connects machines and sensors and requires edge computing and communication modules. Applications producing predictive maintenance with advanced sensors, signal processing, and machine learning inference are also powered by semiconductors. In December 2025, Siemens and GlobalFoundries partnered to apply AI-powered automation and real-time controls to optimize global manufacturing productivity.

Market Segmentation

Components:

• Memory Devices
• Logic Devices: Dominating segment with 21% market share in 2025, extensively used in industrial automation, telecommunications, and advanced computing. Includes ASICs, FPGAs, and general-purpose processors critical for complex data processing. Increasing demand due to AI workloads and software-defined automotive systems.
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

Material Used:

• Silicon Carbide: Leading material with 30% share in 2025, preferred for superior thermal conductivity and high breakdown voltage, essential for power electronics in EVs and renewable energy. STMicroelectronics announced a €5 Billion investment for a SiC manufacturing campus in Italy in 2024.
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

End User:

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics: Largest segment with 62.24% market share in 2025. Driven by smartphones, tablets, wearables, smart home devices requiring advanced semiconductors for enhanced functionality and connectivity.
• Aerospace and Defense
• Healthcare
• Others

Country:

• Germany: Dominates with 25% market share in 2025, driven by strong automotive manufacturing and industrial sectors, supported by strategic investments in semiconductor R&D and infrastructure.
• France
• United Kingdom
• Italy
• Spain
• Others

Regional Insights

Germany is the dominant country in the Europe semiconductor market, holding a 25% market share in 2025. Germany's leadership is due to its robust automotive industry, industrial automation, and government support for advanced semiconductor manufacturing infrastructure. Strategic fab expansions and research initiatives reinforce its position, driving semiconductor consumption for electrification, connectivity, and automation.

Recent Developments & News

In September 2025, ASML invested €1.3 Billion in French AI startup Mistral to create Europe's largest AI-semiconductor alliance. The partnership aims to advance chipmaking tools, integrate AI capabilities, and enhance European tech sovereignty, supporting sectors like automotive and logistics. In August 2024, the European Semiconductor Manufacturing Company (ESMC), a joint venture of TSMC, Bosch, Infineon, and NXP, was announced as Europe's first high-performance chip plant in Dresden, with €5 Billion German aid under the European Chips Act, targeting automotive and industrial applications and full capacity by 2029.

Key Players

• Intel
• Nexperia
• STMicroelectronics
• Axelera AI
• VSORA
• GlobalFoundries
• Siemens
• ASML
• Mistral
• TSMC
• Bosch
• Infineon
• NXP

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