Industrial Semiconductor Market to Reach USD 228.35 Billion by 2032, Driven by the Rising Adoption of Automation and Smart Manufacturing Technologies | SNS Insider

By GlobeNewswire On May 27, 2025

Industrial Semiconductor Market growth is driven by Industry 4.0 automation, EV adoption, IoT expansion, and global investments in smart manufacturing and energy efficiency.

Austin, May 27, 2025 (GLOBE NEWSWIRE) — Industrial Semiconductor Market Size & Growth Insights:

According to the SNS Insider Report, “The Industrial Semiconductor Market Size was valued at USD 87.14 billion in 2024 and is expected to reach USD 228.35 billion by 2032 and grow at a CAGR of 12.86% over the forecast period 2025-2032.”

Industrial Semiconductor Market – Driven by Automation, AI, and Technological Advancements

This growth is mainly propelled by rapid uptake of automation, AI, and IoT in end-user industries like manufacturing, automotive, and energy. With industries increasingly focused on increasing efficiency and performance, the need for high-grade semiconductor solutions is on the rise. Smart systems such as robotic automation, predictive maintenance, or real-time monitoring requirements are strongly depending on the key role played by semiconductors. The development market is being driven by further evolution of some of the tech giants such as YASKAWA Electric and Qualcomm (with feedback) which bring new, more powerful servo drives, AI-dedicated chips, and the au courant topic of 5G-ready solutions. And policy changes, such as Micron Technology’s splinter surcharge to help offset trade repercussions, only serve to emphasize how fluid the market environment is. In the aggregate, the confluence of smart tech and industry 4.0 efforts have established the region as a center of gravity for industrial semiconductor innovation.

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Leading Market Players with their Product Listed in this Report are:

FANUC CORPORATION
Kawasaki Heavy Industries Ltd.
YASKAWA ELECTRIC CORPORATION
Seiko Epson Corporation
Stäubli International AG
NACHI-FUJIKOSHI CORP
Intel Corporation
Qualcomm Incorporated
Micron Technology Inc
Tokyo Electron Limited

Industrial Semiconductor Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 87.14 Billion
Market Size by 2032	USD 228.35 Billion
CAGR	CAGR of 12.86% From 2024 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	•By Type (Single-Mode, and Multi-Mode) •By Component (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, and Others) •By Application (Networking and Communications, Data Centers, Industrial, Consumer, Electronics, Automotive, and Government)
Key Drivers	• Rising Adoption of Automation and AI Technologies Across Industrial Sectors. • Expansion of Industrial Internet of Things (IIoT) Applications Creates New Growth for Market.

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Industrial Semiconductor Market Growth Driven by Single-Mode, Memory Devices, and Networking with Rapid Gains in Multi-Mode, Discrete Power, and Automotive Segments

By Type

In 2024, the Single-Mode segment dominated the Industrial Semiconductor Market with a 76.00% revenue share, due to its long distance high speed data transfer capability. Key players including Intel and Qualcomm have introduced high-end single mode chipset solutions for areas as telecommunications and industrial automation.

The Multi-Mode segment is projected to grow at the fastest CAGR of 14.25% during 2025–2032, due to its flexibility for use in both short and long distance applications. Innovations such as Broadcom’s multi-mode transceivers are strengthening industrial use cases in IIoT and robotics, and growing OEM demand in automotive and manufacturing is also driving segment expansion.

By Component

In 2024, the Memory Devices segment led the Industrial Semiconductor Market with a 31.09% share, driven by the increasing demand for data processing in the industrial sector. Firms such as Micron Technology and Samsung Electronics have developed cutting-edge memory chips made for automation, artificial intelligence and edge computing that increase real-time processing and reliability.

The Discrete Power Devices segment is expected to grow fastest, at a CAGR of 14.62% from 2025 to 2032, driven by the energy-efficient applications such as industrial automation, and electric vehicles. Leading participants including Infineon Technologies and STMicroelectronics are introducing high efficiency MOSFETs and IGBTs to cater to sustainable high end power management systems for all sectors.

By Application

In 2024, the Networking and Communications segment held the largest share of the Industrial Semiconductor Market at 28.91%, driven by rising data transmission needs and the expansion of 5G infrastructure. Leading companies like Qualcomm and Broadcom have introduced advanced chipsets that enhance connectivity and network efficiency, supporting smart industrial systems.

The Automotive segment is projected to grow the fastest, with a CAGR of 14.73% from 2025 to 2032, owing to the growth in electric and autonomous vehicle segment. Automotive-grade chip-related advancement in ADAS, EV powertrains and connectivity of NXP Semiconductors and Renesas Electronics are driving the market demand amid the changing mobility and smart transportation landscape.

Asia Pacific, Europe, Middle East & Africa, and Latin America Drive Growth in the Industrial Semiconductor Market

The Asia Pacific region dominated the Industrial Semiconductor Market in 2024 with a 41.97% revenue share, Leading countries, such as China, Japan, and South Korea, all have major semiconductor producers, including TSMC, Samsung, and SMIC, which are all heavily investing in advanced chip fabrication and R&D (#23) in industrial automation and robotics, along with smart infrastructure. The arrival of China, backed by government programs and strong manufacturing capabilities, is a key factor in the region’s dominance.

Europe is gradually increasing the market with growing demand from automotive, industrial automation, and renewable energy and is driving innovations, which is led by innovation from Germany with the companies like the Infineon Technologies. and strategic establishment such as the Europe Semiconductor Manufacturing Company in Dresden.

The Middle East & Africa market grows steadily, due to the investments in automotive, energy & power, and telecom by countries including UAE, Saudi Arabia, and South Africa. Semiconductors also continue to find more applications in a growing Latin America market, where rapid expansion is aided by increasing demand and government incentives in Brazil and Argentina.

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Recent News:

In May 2025, Taiwan’s industrial semiconductor output is projected to rise 19.1% to USD 210 billion in 2025, driven by strong growth in IC manufacturing and design segments, led by TSMC’s expected 24-26% sales increase. This surge is fueled by high demand for advanced AI chip processes despite recent market uncertainties.
In May 2025, Light shift Energy is set to build Vermont’s largest 16MW/52MWh battery storage system at Global Foundries’ semiconductor facility, boosting energy efficiency and grid stability with peak shaving technology by early 2026.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Production Yield and Efficiency

5.2 Supply Chain and Logistics Metrics

5.3 Cost Breakdown and Profit Margins

5.4 Supply and Demand Gap

6. Competitive Landscape

7. Industrial Semiconductor Market, by Type

8. Industrial Semiconductor Market, by Component

9. Industrial Semiconductor Market, by Application

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

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