Microelectronics market

ZVEI: The global microelectronics market

Overall, the market for microelectronics is stable. To ensure that this remains so in Europe and Germany, the promotion of R&D and production will continue to be necessary in the future.

Although the growth path of the global microelectronics market is intact in its long-term trend, it will decline by 12.1 percent to 412 billion US dollars in 2019 compared to the previous year. Memory chips, which still generated the strongest sales in 2017 and 2018, were particularly affected.

Between 2014 and 2019, the global market for microelectronics grew from US$336 billion to US$412 billion, which corresponds to an average annual growth rate of 4.2 percent. For the next few years an annual growth rate of about 5 percent is expected.

The European market reached a volume of around 40 billion US dollars in 2019. Between 2014 and 2019, its average annual growth was 1.2 percent. It is noticeable that the European share of the industry's total sales has been consolidating since 2015. The focus in Europe remains on the growth segments of automotive and industrial electronics. The old continent is the world leader in the use of semiconductors for automotive electronics. Both segments are expected to continue to grow strongly over the next five years. The main drivers of this development are Industry 4.0 and the Internet of Things.

The first signs of the global Covid 19 crisis are also visible in the microelectronics industry, although the first quarter of 2020 remained stable. Demand for microelectronics remains strong in the areas of medical technology and home office applications.

In the coming years, further growth in Germany and Europe will require the maintenance and expansion of currently existing research, development and production facilities. The ZVEI is therefore calling, among other things, for successful measures such as the IPCEI Microelectronics and the European research community ECSEL to be financially future-proof.