Global Industrial Semiconductors Market – Industry Trends and Forecast to 2031

Industrial Semiconductors Market Analysis and Size

Factory automation refers to the utilization of industrial semiconductors from some of the biggest semiconductor manufacturers in the automation of manufacturing processes. Industrial semiconductors enable the control and monitoring of machinery and equipment in factories, allowing for increased efficiency, precision, and reliability in production operations. These components facilitate tasks such as sensing, data processing, and actuation, leading to streamlined workflows and reduced human intervention. Through the integration of advanced semiconductor technologies, factory automation systems can optimize resource utilization, minimize downtime, improve product quality, and enhance overall productivity in manufacturing environments.

Global industrial semiconductors market size was valued at USD 78.57 billion in 2023 and is projected to reach USD 208.13 billion by 2031, with a CAGR of 12.95% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Industrial semiconductors are electronic components specifically designed and manufactured for use in industrial applications. These applications encompass a wide range of sectors such as manufacturing, automation, energy, transportation, and more. Industrial semiconductors are engineered to withstand harsh environmental conditions, offer high reliability, and often feature specialized functionalities tailored to industrial needs, such as robustness, extended temperature ranges, and resistance to electromagnetic interference. They play a crucial role in powering and controlling various industrial equipment and systems, contributing to the efficiency and automation of industrial processes.

Industrial Semiconductors Market Dynamics

Drivers

• Growing Advent of Industry 4.0 Technologies Enhances Operational Efficiency

Industry 4.0 technologies require advanced semiconductor components to enable connectivity, processing power, and real-time data processing capabilities within industrial systems. Industrial semiconductors play a pivotal role in enabling smart factories, autonomous machinery, predictive maintenance, and efficient supply chain management, driving the adoption of Industry 4.0 solutions. As industries increasingly embrace digital transformation to improve productivity, reduce downtime, and enhance operational efficiency, the demand for specialized industrial semiconductors tailored to these applications continues to grow, propelling the industrial semiconductors market forward.

• Growing Demand for Automation Across Industries Increases the Investment in Industrial Semiconductor Technologies

Automation initiatives seek to enhance efficiency, productivity, and precision in industrial processes, leading to a growing need for semiconductor components tailored to automation systems. Industrial semiconductors enable the control, monitoring, and communication functions crucial for automation, including sensors, microcontrollers, and communication interfaces. As industries adopt more advanced automation technologies such as robotics, machine learning, and Internet of Things (IoT) devices, the demand for specialized semiconductors capable of handling complex tasks and interfacing with diverse systems continues to rise.

Opportunities

• Expansion of Service Robotics leads to the Expansion of the Industrial Semiconductors

The service robots rely heavily on advanced semiconductor technologies to enable functions such as sensing, computing, and actuation. As demand for service robots continues to rise due to factors such as increasing automation, labor shortages, and the need for efficiency and precision, the demand for industrial semiconductors tailored for robotics applications also grows. This trend fuels innovation in the semiconductor industry, with manufacturers developing specialized components optimized for the unique requirements of service robotics, thereby contributing to the expansion of the industrial semiconductors market.

• Expansion of Renewable Energy Sources Increases the Demand for Industrial Semiconductors

Renewable energy systems rely heavily on semiconductor technology for efficient power generation, conversion, and management. Semiconductors are crucial components in inverters, power converters, and control systems within renewable energy infrastructure. As the demand for renewable energy continues to grow globally, the need for advanced and reliable industrial semiconductors increases to support the development, deployment, and optimization of renewable energy systems, thus propelling the growth of the industrial semiconductors market.

Restraints/Challenges

• High Initial Investment Limits the Adoption by Industrial Customers

High initial investment encompasses research and development costs, specialized manufacturing equipment, and stringent quality control measures to meet the rigorous standards demanded by industrial applications. These high costs can deter potential entrants into the market, limiting competition and innovation. Moreover, they contribute to higher prices for industrial semiconductor products, potentially impeding adoption by industrial customers seeking cost-effective solutions.

• Growing Technological Complexity Leads to the Greater Risk of Manufacturing Defects

Developing advanced semiconductor technologies requires substantial investment in research, development, and manufacturing facilities, which can strain resources and extend product development cycles. Moreover, the complexity of these technologies can lead to higher production costs and greater risk of manufacturing defects, impacting profitability. This complexity also presents challenges in scaling production and maintaining consistent quality standards, which can hinder the ability of semiconductor companies to meet the evolving demands of industrial customers efficiently.

This market,  report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In February 2021, Infineon Technologies launches a new range of Gallium Nitride (GaN) power devices tailored for industrial use. These GaN devices promise enhanced efficiency, faster switching speeds, and smaller footprints, paving the way for superior performance and energy savings in industrial systems
• In June 2020, NVIDIA's acquisition of Arm Ltd. seeks to bolster its position in the industrial semiconductor market by leveraging Arm's expertise in low-power and energy-efficient designs alongside NVIDIA's prowess in AI and high-performance computing

Industrial Semiconductors Market Scope

The market is segmented on the basis of type, industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Single- Mode
• Multi- Mode

Application

• Construction
• Manufacturing
• Automotive
• Aerospace
• Others

Industrial Semiconductors Market Regional Analysis/Insights

The market is analyzed and market size, and volume information is provided by country, type and application as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Brazil, Argentina and the Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC)  in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of the Middle East and Africa (MEA) as a part of the Middle East and Africa (MEA).

The Asia-Pacific dominates the market, driven by widespread adoption of high-end technology devices at competitive prices. This leadership is fueled by the region's strong manufacturing capabilities, extensive supply chains, and robust consumer electronics market. Additionally, favorable government policies and investments in research and development further bolster the growth of the semiconductor industry in the Asia-Pacific region. This dynamic environment positions the region as a key player in shaping the future of industrial semiconductor technologies.

North America is expected to witness substantial growth, largely attributed to heightened investments in research and development (R&D) initiatives. These investments are expected to drive innovation across various sectors, stimulating economic growth and technological advancements. The region's robust R&D ecosystem, coupled with supportive government policies and a thriving entrepreneurial culture, positions it as a key player in fostering innovation and driving future growth. This trend underscores North America's pivotal role in shaping the global landscape of technology and innovation over the forecast period.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Industrial Semiconductors Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating 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) 
• Intel Corporation (U.S.)
• Qualcomm Incorporated (U.S.)
• Micron Technology Inc. (U.S.)
• Tokyo Electron Limited (Japan)

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