Industrial semiconductors market seen topping $159 billion by 2030

The industrial semiconductors market is projected to exceed $159 billion by 2030, driven by automation, smart manufacturing, industrial IoT and renewable energy demand. Asia Pacific is expected to lead growth, while Texas Instruments held the largest global share in 2024.

Why it matters: - Industrial semiconductors are becoming a core input for automation, smart factories, connected machinery and energy systems. - The market’s projected growth signals rising demand for chips built to handle harsh industrial environments and real-time control. - The segment is expected to expand faster than the broader semiconductor market, which points to stronger industrial spending on digital infrastructure.

What happened: - The Business Research Company published its Industrial Semiconductors Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035. - The report projects the industrial semiconductors market will exceed $159 billion by 2030, growing at a 13% CAGR. - The market is forecast to represent about 17% of the broader Semiconductor and Related Devices market, which is expected to reach roughly $950 billion by 2030. - The segment is also projected to account for nearly 3% of the overall Electrical and Electronics industry, which is forecast at $5,579 billion in 2030. - The report says Asia Pacific will generate $81.6 billion in industrial semiconductor revenue by 2030, up from $43.7 billion in 2025. - China is expected to be the largest country market by 2030, reaching $44.3 billion from $23.9 billion in 2025.

The details: - Single-mode products are projected to hold 61% of the market by 2030, equal to about $97 billion. - Single-mode demand is tied to high-speed industrial communication, long-distance signal transmission, industrial sensing, monitoring and mission-critical automation. - The market is segmented by product type into integrated circuits, optoelectronics, discrete semiconductors and sensors. - Applications include construction, manufacturing, automotive, aerospace and other industrial fields. - The report identifies automation equipment, smart controls and connected machinery as major growth drivers. - Those uses support power management, signal processing, sensing and real-time control. - Manufacturing modernization is adding about 2.4% yearly growth to the market, according to the report. - Renewable energy projects such as solar installations, wind farms and energy storage facilities are adding about 2.3% annual growth. - Greater semiconductor integration in industrial equipment is contributing about 2.0% yearly growth. - The report highlights mixed-signal precision technologies as a major innovation area. - In June 2024, Asahi Kasei Microdevices Corporation released the CQ36 series integrated circuit with analog-to-digital conversion, high signal-to-noise ratio, low power consumption and a compact form factor. - Texas Instruments was the top global sales leader in 2024 with a 4% share of the market. - Analog Devices Inc also held a 4% share in 2024. - STMicroelectronics NV and Infineon Technologies AG each held 3%. - NXP Semiconductors NV, Renesas Electronics Corporation and Microchip Technology Inc. each held 2%. - Broadcom Inc and ROHM Semiconductor Ltd each held 1%. - Vishay Intertechnology Inc held 0.4%. - The top ten players accounted for about 23% of total revenues in 2024. - The report describes the market as moderately fragmented. - Entry barriers remain high because of capital requirements, advanced manufacturing processes, stringent quality standards, complex product design and long product lifecycles. - Strategic priorities include improving semiconductor architectures, using wide bandgap materials, expanding fabrication capacity and integrating AI and IoT chips. - The report says the single-mode and multi-mode segments together will add more than $73 billion in market value by 2030. - Single-mode is expected to add $43 billion between 2025 and 2030, while multi-mode is expected to add $30 billion. - The supply chain includes raw material providers such as Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc. and Qualcomm Incorporated. - Distributors include Arrow Electronics Inc., Avnet Inc., Digi-Key Electronics and Mouser Electronics Inc. - End users include Siemens AG, ABB Ltd., Schneider Electric SE, General Electric Company, Rockwell Automation Inc., Honeywell International Inc. and Bosch Rexroth AG. - The report also lists other major companies in the market, including Analog Devices Inc, STMicroelectronics NV, Infineon Technologies AG, NXP Semiconductors NV, Renesas Electronics Corporation, Microchip Technology Inc., Broadcom Inc, ROHM Semiconductor Ltd, Vishay Intertechnology Inc, Mitsubishi Electric Corporation, Honeywell International Inc, Omron Corporation, Littelfuse Inc., Hitachi Ltd, Fuji Electric Co Ltd, Panasonic Corporation, Wolfspeed Inc., Teledyne Technologies Incorporated, Diodes Incorporated and Advanced Micro Devices Inc. - The Business Research Company said the 2026 report series includes market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel dashboards, market hotspots infographics, key technologies and future trends, and updated graphics and tables.

Between the lines: - The report’s growth assumptions point to industrial semiconductors as a beneficiary of broader factory digitization, electrification and grid modernization. - Asia Pacific’s lead reflects the region’s manufacturing scale, robotics adoption and investment in fabrication capacity. - China’s expected dominance suggests domestic chip production and industrial modernization remain strategic priorities. - The concentration levels suggest a competitive market, but not one dominated by a small handful of firms.

What’s next: - The report expects demand to keep rising as factories add more automation, sensing and connected systems. - Market gains will likely depend on continued investment in fabrication, industrial IoT and power-efficient chip designs. - Companies are expected to compete on reliability, high-voltage performance and real-time processing capability. - More information is available in the full report and a free sample.

The bottom line: - Industrial semiconductors are moving from a niche component category to a major growth engine for automation, energy and digital manufacturing.