The European microcomponent semiconductor market is estimated to be valued at US$6.410 billion in 2020.
Factors such as the increasing adoption of consumer electronic devices, the emergence of AI, IoT, and ML, and the growing demand for faster and more advanced memory chips in various industrial applications are anticipated to drive the market growth during the forecast period. The market is segmented into three types: type, industry vertical, and country.
Europe Microcomponent Semiconductor Market Drivers
Growing demand for consumer electronics- converged devices such as Smart TVs, smartphones, and digital setup boxes is anticipated to fuel the demand for microcomposite semiconductors across the consumer electronics industry, which, in turn, is expected to drive the overall market growth. Extensive usage of semiconductor micro components in consumer electronic devices such as fast chargers for smart devices like laptops and smartphones is expected to drive market growth across the region. Increased demand for smartphones, with the ongoing trend of remote working and online classes, the demand for laptops, and smartphones will continue to rise. Because of the COVID-19 pandemic, most consumers have made smartphones their new essential, which will increase demand for micro-component semiconductors throughout the region.
Europe Microcomponent Semiconductor Market- By Industry Vertical
The growth of the semiconductor industry across the region is directly dependent on end-user growth in the region. Growing electric vehicle use E-mobility is expected to increase the demand for microcomponent semiconductors in the automotive industry. Europe is expected to be one of the most advanced EV markets in the future. According to the European Environment Agency, Europe's total electricity consumption by electric vehicles will increase from approximately 0.03 % in 2014 to 9.5 % in 2050, and the share of electric vehicles as part of the entire EU-28 car fleet in 2050 was assumed to be 50%. Every electric vehicle needs an onboard charger to convert AC power into DC power to charge the battery. Innovation in the semiconductor industry helps electric and hybrid electric vehicles charge fast and drive farther in comparison to the traditional silicon-based charging technology. This is due to how electric vehicle manufacturers are incorporating the latest automotive-qualified semiconductor components, which is anticipated to drive the overall market growth during the forecast period.
Covid-19 Insights
The COVID-19 pandemic has slowed down the growth of the market. During the pandemic, there was a shortage of semiconductors because of which many countries across the region faced significant demand and supply imbalance. All the manufacturing facilities were completely shutdown and all the plans related to the manufacturing of new components were delayed which has impacted the overall market growth. However, the market is surging with rapid innovation and investments in consumer electronics and the automotive industry across the region.
Market Segmentation
The market has been analysed through the following segments: