Europe Semiconductor Device Market (2026-2031) - Rising Demand For Automotive Electronics Drives Growth
Dublin, Sept. 24, 2026 (GLOBE NEWSWIRE) -- "Europe Semiconductor Device - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Europe Semiconductor Device Market to Reach USD 90.71 Billion by 2031 as AI, Electric Vehicles and Advanced Manufacturing Drive Growth
The Europe semiconductor device market is projected to grow from USD 66.35 billion in 2025 and USD 68.72 billion in 2026 to USD 90.71 billion by 2031. The market is expected to register a compound annual growth rate of 5.71% from 2026 to 2031, supported by rising demand from artificial intelligence infrastructure, electric vehicles, industrial automation, communications and data centers.
AI Infrastructure Accelerates Semiconductor Demand
Expanding artificial intelligence capacity across European hyperscale data centers is increasing demand for logic integrated circuits, power-management components and mixed-signal devices. Germany and the Netherlands are emerging as important locations for AI server clusters due to renewable energy availability and extensive fiber connectivity.
European semiconductor manufacturers are benefiting from demand for the power and mixed-signal components surrounding advanced AI processors. Infineon expects AI-related power-management revenue to reach EUR 1.5 billion, or approximately USD 1.7 billion, in fiscal 2026 as silicon-carbide uninterruptible power supply modules gain traction in hyperscale deployments. This trend is creating new opportunities for regional analog semiconductor specialists working with data center operators on thermal management, voltage regulation and energy efficiency.
Electric Vehicles Strengthen Silicon-Carbide Growth
The adoption of 800-volt battery-electric vehicle platforms by German and French automakers is accelerating demand for silicon-carbide power devices. These components are increasingly used in traction inverters to improve charging performance, reduce energy losses and lower vehicle weight.
Infineon and Stellantis signed a memorandum of understanding in 2025 to jointly develop silicon-carbide power modules, supporting the expansion of Infineon's CoolSiC production in Dresden. European Union Chips Act incentives are also helping strengthen regional semiconductor manufacturing capacity. Meanwhile, multi-year supply agreements covering wafers, epitaxy and finished devices are becoming more common as automotive manufacturers seek reliable access to constrained silicon-carbide capacity.
Engineering Talent Shortage Remains a Market Constraint
Europe's limited pipeline of analog and mixed-signal design engineers could restrict semiconductor industry expansion. SEMI Europe's October 2024 "Skills for Chips" report estimated that 1 million semiconductor positions must be filled by 2030, with particularly strong demand for analog and mixed-signal expertise.
Although the European Chips Skills Academy aims to train 100,000 people, education programs must keep pace with developments in cryogenic CMOS, advanced sensor design and wide-bandgap power modeling. Some German automotive suppliers report hiring timelines of up to 18 months for senior analog engineers. Without faster workforce development, intellectual property validation and product design cycles could delay the benefits of new fabrication capacity.
Additional factors shaping the Europe semiconductor device market include rapid standalone 5G deployments, rising radio-frequency front-end content in smartphones and EU Chips Act-backed 300 mm fabrication projects. However, the high capital requirements associated with new silicon-carbide and gallium-nitride substrate production lines remain a significant barrier.
Integrated Circuits Maintain Market Leadership
Integrated circuits accounted for 61.72% of the Europe semiconductor device market in 2025, supported by established applications in automotive body control, industrial programmable logic controllers and data center voltage regulation. STMicroelectronics launched its STM32V8 microcontroller family in November 2025 using an 18 nm process, targeting advanced driver-assistance systems and electric-vehicle zone controllers.
Optoelectronics also maintained a meaningful market position, supported by demand for sensing technologies. Discrete power devices continued shifting from silicon insulated-gate bipolar transistors to silicon-carbide MOSFETs as 800-volt electric-vehicle platforms expanded.
Sensors and microelectromechanical systems are forecast to record the fastest device-category growth, with a CAGR of 6.11%. Demand is being driven by magnetic-position sensors, current sensors and advanced imaging systems. As centralized vehicle architectures become more prevalent, distributed sensing is expected to generate increasing semiconductor content per vehicle.
Integrated Manufacturers Lead While Fabless Vendors Expand
Integrated device manufacturers generated 67.33% of market revenue in 2025, reflecting the value of combining semiconductor design and manufacturing capabilities. Regional fabrication investments, including the expansion of Infineon's Dresden operations, are strengthening Europe's supply resilience and reducing sourcing risks.
Design and fabless semiconductor vendors are projected to grow at a 5.89% CAGR through 2031. Greater access to foundry services is enabling more application-specific integrated circuit development for automotive and industrial applications. Hybrid operating strategies, forward-capacity agreements and closer collaboration between chip designers and manufacturers are expected to remain central to the continued expansion of the Europe semiconductor device market.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 AI-Optimised Logic IC Demand from European Hyperscale Data Centres
4.2.2 Electric-Vehicle Power Electronics Pulling SiC Devices in Germany and France
4.2.3 Rapid 5G SA Roll-outs Elevating RF Front-End Module Content per Smartphone
4.2.4 EU Chips Act- Funded 300 mm Fab Expansions Lowering Local Sourcing Risk
4.2.5 Quantum-Computing Pilot Lines Spurring Cryogenic CMOS Controller Demand in Finland and Netherlands
4.2.6 Silicon Photomultiplier Adoption in Medical Imaging Start-ups Accelerating Niche Sensor Volumes
4.3 Market Restraints
4.3.1 Tight EU27 Talent Pipeline for Analog and Mixed-Signal Design Engineers
4.3.2 Capital-Intensity Barrier for New SiC and GaN Substrate Lines
4.3.3 PFAS Phase-Out under REACH Raising Dielectric Material Re-qualification Costs
4.3.4 Fragmented Sub-200 mm Foundry Ecosystem Limiting IoT Prototyping Scalability
4.4 Industry Value Chain Analysis
4.5 Regulatory Landscape
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Device Type
5.1.1 Discrete Semiconductors
5.1.1.1 Diodes
5.1.1.2 Transistors
5.1.1.3 Power Transistors
5.1.1.4 Rectifier and Thyristor
5.1.1.5 Other Discrete Semiconductors
5.1.2 Optoelectronics
5.1.2.1 Light-Emitting Diodes (LEDs)
5.1.2.2 Laser Diodes
5.1.2.3 Image Sensors
5.1.2.4 Optocouplers
5.1.2.5 Other Optoelectronics
5.1.3 Sensors and MEMS
5.1.3.1 Pressure
5.1.3.2 Magnetic Field
5.1.3.3 Actuators
5.1.3.4 Acceleration and Yaw Rate
5.1.3.5 Other Sensors and MEMS
5.1.4 Integrated Circuits
5.1.4.1 By IC Type
5.1.4.1.1 Analog
5.1.4.1.2 Micro
5.1.4.1.2.1 Microprocessors (MPU)
5.1.4.1.2.2 Microcontrollers (MCU)
5.1.4.1.2.3 Digital Signal Processors
5.1.4.1.3 Logic
5.1.4.1.4 Memory
5.2 By Business Model
5.2.1 Integrated Device Manufacturer (IDM)
5.2.2 Design / Fabless Vendor
5.3 By End-user Industry
5.3.1 Automotive
5.3.2 Communication (Wired and Wireless)
5.3.3 Consumer
5.3.4 Industrial
5.3.5 Computing / Data Storage
5.3.6 Data Center
5.3.7 Artificial Intelligence
5.3.8 Government
5.4 By Technology Node
5.4.1 Less than or Equal to 3nm
5.4.2 5 nm
5.4.3 7 nm
5.4.4 16 nm
5.4.5 Less than or Equal to 28nm
5.5 By Country
5.5.1 Germany
5.5.2 United Kingdom
5.5.3 France
5.5.4 Italy
5.5.5 Netherlands
5.5.6 Spain
5.5.7 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
6.4.1 STMicroelectronics N.V.
6.4.2 Infineon Technologies AG
6.4.3 NXP Semiconductors N.V.
6.4.4 ON Semiconductor Corporation
6.4.5 Texas Instruments Incorporated
6.4.6 Analog Devices, Inc.
6.4.7 Intel Corporation
6.4.8 Advanced Micro Devices, Inc.
6.4.9 Microchip Technology Incorporated
6.4.10 Renesas Electronics Corporation
6.4.11 Micron Technology, Inc.
6.4.12 SK hynix Inc.
6.4.13 Samsung Electronics Co., Ltd.
6.4.14 Wolfspeed, Inc.
6.4.15 Melexis N.V.
6.4.16 Elmos Semiconductor SE
6.4.17 ams-OSRAM AG
6.4.18 GlobalFoundries Inc.
6.4.19 Taiwan Semiconductor Manufacturing Company Limited
6.4.20 X-FAB Silicon Foundries SE
6.4.21 ROHM Co., Ltd.
6.4.22 Soitec S.A.
6.4.23 Semikron Danfoss GmbH & Co. KG
6.4.24 ASM International N.V.
6.4.25 IQE plc
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-Space and Unmet-Need Assessment
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