Automation Propel Growth Of The Industrial Semiconductor Market Driver: Leading Transformation in the Industrial Semiconductors Market in 2025

What Are the Projected Growth and Market Size Trends for the Industrial Semiconductors Market?
The recent years have seen a significant expansion in the market size of industrial semiconductors. The current value of $76.3 billion in 2024 is projected to surge to $86.38 billion in 2025, reflecting a compound annual growth rate (CAGR) of 13.2%. The prominent factors contributing to the growth during the historic phase include the arrival of the integrated circuit, launch of products for end consumers, the proliferation of personal computers, the integration of electronics into automobiles and the precocious adoption of automation technologies.

Anticipations indicate a swift expansion in the industrial semiconductors market size in the forthcoming years. By 2029, it's projected to reach $140.8 billion with a compound annual growth rate (CAGR) of 13.0%. Factors contributing to this potential growth during the forecast period include advancements in manufacturing techniques, escalated demand for semiconductors, a surge in power electronics demand in solar and wind energy systems, the spread of 5G networks, and the reliability and efficiency of the supply chain. Significant trends in the forecast period encompass rising demands for automation, development of the Internet of things in industrial scenarios, utilization of artificial intelligence and machine learning, progress in robotics, the implication of digital twin technology, and the advent of quantum computing.

What Factors Are Fueling Growth in the Industrial Semiconductors Market?
The industrial semiconductors market is expected to experience significant growth in the future, largely driven by an increasing need for automation. Automation, which uses control systems and technology to operate machinery and processes with little to no human input, is becoming more desirable due to the demand for efficiency, productivity, and precision across numerous industries. This often involves the integration of advanced technology and automated systems. Semiconductors play a crucial role in industrial automation, with applications in controlling processes, powering motors, and sensor environments, making them a vital component for communication within computerised systems. For example, data from the International Federation of Robotics (IFR), a professional non-profit organisation based in Germany, showed that the total number of service robots offered for professional use is projected to reach 158,000 units in 2022, an increase of 48% from September 2023. Additionally, globally, companies have recorded 553,052 industrial robot installations, indicating an annual growth rate of 5% through 2022. This upward trend in automation is a key driver propelling the growth of the industrial semiconductors market.

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Which Leading Companies Are Shaping the Growth of the Industrial Semiconductors Market?
Major companies operating in the industrial semiconductors market are Hitachi Ltd, Panasonic Corporation, Mitsubishi Electric Corporation, Honeywell International Inc, Broadcom Inc, Advanced Micro Devices Inc., STMicroelectronics NV, Infineon Technologies AG, NXP Semiconductors NV, Analog Devices Inc., Renesas Electronics Corporation, Fuji Electric Co. Ltd., Microchip Technology Inc., Omron Corporation, Teledyne Technologies Incorporated, ROHM Semiconductor Ltd., Vishay Intertechnology Inc., Diodes Incorporated, Microsemi Corporation, Fairchild Semiconductor International Inc.

What Are the Major Trends Shaping the Industrial Semiconductors Market?
Leading firms in the industrial semiconductors market are prioritizing the development of pioneering products such as incorporated Delta-Sigma modulators to augment precision and productivity in data conversion and signal processing. The embedded delta-sigma modulator elevates the accuracy and effectiveness of data conversion protocols. For example, Asahi Kasei Microdevices Corporation, a company from Japan specializing in design and manufacturing, introduced the CQ36 Series Integrated Circuit in June 2024. This provides enhanced features in a smaller package, designed to facilitate high-precision conversion from analog to digital, thus ameliorating the performance of various applications in both industrial and consumer electronics. The CQ36 series exhibits superior signal-to-noise ratios and lower energy usage, making it an ideal option for applications powered by batteries. Moreover, thanks to its compact and highly functional design, it can seamlessly integrate into complex electronic systems.

What Are the Key Segments of the Industrial Semiconductors Market?
The industrial semiconductors market covered in this report is segmented -

1) By Type: Single-Mode, Multi-Mode
2) By Product: Integrated Circuits, Optoelectronics, Discrete Semiconductors, Sensors
3) By Application: Construction, Manufacturing, Automotive, Aerospace, Other Applications

Subsegments:
1) By Single-Mode: Low Loss Single-Mode, High Power Single-Mode
2) By Multi-Mode: Standard Multi-Mode, High Bandwidth Multi-Mode

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Which Region Dominates the Industrial Semiconductors Market?
Asia-Pacific was the largest region in the industrial semiconductors market in 2023. The regions covered in the industrial semiconductors market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Industrial Semiconductors Global Market Report?

- Market Size Analysis: Analyze the Industrial Semiconductors Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Industrial Semiconductors Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Industrial Semiconductors Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Industrial Semiconductors Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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