Europe Logic Semiconductor Market Size, Share, Opportunities, COVID-19 Impact And Trends By Type (Special Purpose Logic, Display Drivers, General Purpose Logic, Application Specific Integrated Circuit, Programmable Logic Device), By Industry Vertical (Communication, Consumer Electronics, Automotive, Manufacturing), And By Country - Forecasts From 2022 To 2027

The European logic semiconductor market is projected to grow at a CAGR of 9.10% during the forecast period to reach US$27.098 billion by 2027, from US$14.730 billion in 2020. Logic semiconductors are used to assess and control electronic devices' operations by processing digital data. Small microelectronic circuits, also known as logic gates, are commonly used to construct digital circuits to produce combinational logic. Such logic chips could be found in almost all digital products, like mobiles and arithmetic logic units. Logic semiconductors are heavily used in the automotive and electronic industries. The logic semiconductor market's growth depends on such industries. Logic Semiconductors are segmented into six types based on their types: Special Purpose Logic, Display Drivers, General Purpose Logic, Application-specific Integrated Circuits, and Programmable Logic Devices. The increase in the trend of digitalization is anticipated to further augment the demand for such logic semiconductors and thereby increase the industry's growth in the forecasted period.

Changing Trends - Increasing use of electronic devices with ALUs is expected to propel the logic semiconductor market.

With the steady advancements in technologies and innovations, the consumer electronics industry has been steadily expanding and evolving in the last few years. Rising income, advancing technologies, and better Internet connectivity are the factors responsible for increasing the penetration of electronic devices in the industry. This rising demand is steadily impacting the market size positively. As mentioned above,  logic semiconductors are designed to process and analyze digital data to control the operations of various electronic systems. Usually,  electronic systems are heavily reliant on such semiconductors for their operation, and without them, devices will fail to function normally. In today's world, logic semiconductors are used in a wide range of products, from electronic devices like smartphones, laptops, smartwatches, and earpods to automobile vehicles. They are also being used in smart household devices such as washing machines, air conditioners, etc.

Besides, it is irrefutable that cyber-physical systems and the IoT have obscured the boundaries between the digital and physical worlds. The advent of autonomous vehicles, medical systems, robotics, and smart grids has drastically changed the lifestyles of many across the globe. According to Oracle, there are currently about ten billion IoT sensors, which are expected to increase to 22 billion by 2025. Furthermore, due to the digitalization trend, broadband-enabled devices' consumption has been steadily rising. This rising number of broadband users has been further propelled due to countrywide lockdowns during the pandemic. According to the survey conducted by Ofcom, a regulator and competition authority in the United Kingdom, post-lockdown wi-fi usage increased to 74% in 2020 from 65% before the rise of the pandemic. The emergence of 5G has further resulted in the adoption of smartphones and devices enabled with 5G, which has led to an increase in the demand for semiconductors. According to Ofcom, in 2021, overall, 43.8k 5G connections were found across the country, and the count is expected to further increase with the increasing network operators' strategies to expand their technologies far and wide across the UK.

The enactment of new acts and strategies by governments and private companies will propel the market size of logic semiconductors in Europe during the forecasted period.

As semiconductors are entering into a new growth cycle, boosted by in-vehicle electronics,  artificial intelligence, IoT devices, automation, cloud processing, and 5G, making the planet more sustainable and more innovative, several companies are moving up a gear by formulating and deploying several strategies. The leading companies' strategic expansion and the commencement of new investments to raise their ranks in a fiercely competitive landscape are further propelling the industry's growth. For instance, in October 2019, NXP Semiconductors, a European-based automotive semiconductor provider, collaborated with Volkswagen. The eighth generation of the Volkswagen Golf model was equipped with NXP's vehicle-to-everything (V2X) technology. The two giants have collaborated to produce high-performance and reliable products and standardize V2X communication, addressing privacy and cybersecurity protection. In 2022, Intel announced its plans to invest 80 billion euros over the next ten years in the European Union. This project includes the complete semiconductor value chain, from R & D to manufacturing and packaging. In March of that year, the company made an initial investment of 17 billion euros. With this investment, the company intends to upgrade its German site with cutting-edge semiconductor technologies, create new research, development, and design hub in France, and build manufacturing and foundry services in other countries like Ireland, Poland, Spain, and Italy. With this plan, Intel intends to create a next-generation European chip ecosystem, strengthening a much more balanced and resilient supply chain furthermore, in February 2022, the European Semiconductor Industry Association (ESIA) announced the 'European Chips Act" to support the EU's microelectronics system. As a part of this act, a total of 11 billion euros would be invested to strengthen the current research, innovation, and development system, ensuring the deployment of cutting-edge semiconductor tools. The Chip Fund will also provide financing to the new start-ups while also establishing a new framework to ensure the security of supplies via attracting investments and expanding production capacities. Such initiatives and strategies deployed by both the government and private companies rapidly increase the market size. s a result of such strategies and plans, annual semiconductor sales in 2021 increased to US $47.357 billion, a positive 27.3% increase over the previous year. And this value is expected to continue rising in the forecast period.

Covid-19 Insights

The outbreak of COVID-19 has disrupted the logic semiconductor market in Europe. Manufacturing and supply chains have been adversely affected due to short-term manpower shortages and border restrictions across the globe. The global pandemic resulted in the complete closure of automotive factories between March and May due to the surge of active cases. According to the EU Member States, on average, the automotive factories across Europe were closed for 30 days, with the longest observed in Italy, where the closure lasted for 41 days, and Sweden, where the factories were only shut down for 15 days. Consequently, the industry saw a production loss of about 3.6 million vehicles in the first half of the year. And by September, the demand for cars fell by 28.8%. Furthermore, because 80 percent of semiconductor assembly operations and foundries are distributed across Asia, Europe is heavily reliant on imports.  The shutdown of the factories in that region and stringent border restrictions affected imports into Europe. Nonetheless, the semiconductor market saw an increase in demand post-pandemic due to the surging demand for automation and several other factors.

Key Market Segments

• By Type
  • Special Purpose Logic
  • Display Drivers
  • General Purpose Logic
  • Application Specific Integrated Circuit
  • Programmable Logic Device
• By Industry Vertical
  • Communication
  • Consumer Electronics
  • Automotive
  • Manufacturing
• By Countries
  • Germany
  • France
  • UK
  • Italy 
  • Others