Discrete Semiconductor Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 68.58 Bn

Forecast Year, 2035

USD 159.12 Bn

CAGR, 2026 - 2035

8.78%

Report Coverage

Global

What is the Discrete Semiconductor Market Size?

The global discrete semiconductor market size is calculated at USD 68.58 billion in 2025 and is predicted to increase from USD 74.68 billion in 2026 to approximately USD 159.13 billion by 2035, expanding at a CAGR of 8.78% from 2026 to 2035.

Discrete Semiconductor Market Key Takeaways

• Asia Pacific led the global market with the highest market share of 42.13% in 2025.
• Asia Pacific is expected to expand at the fastest CAGR between 2026 and 2035.
• By Type, The MOSFET segment is predicted to dominate the market from 2026 to 2035.
• By End User, The automotive segment captured more than 37% of revenue share in 2025.

Strategic Overview of the Global Discrete Semiconductor Industry

Small electronic tasks are often handled by discrete semiconductors. The creation of electrical products is one of the many uses for these semiconductors. Bipolar transistors, metal-oxide-semiconductor field-effect transistors (MOSFETs), insulated-gate bipolar transistors (IGBTs), and thyristors are examples of typical products. Additionally, it can be found in laptops, hybrid vehicles, cell phones, tablets, LED lighting, and portable medical equipment. Discrete semiconductors are quick to operate, portable, reliable, and simple to replace. They also require less power. The demand for components that are quick, small, and can boost manufacturing efficiency is driving the growth of the discrete semiconductor industry among electronic makers. These specifications are met by discrete parts such as modules, transistors, diodes, and thyristors.

The discrete semiconductor market is also anticipated to be driven by industrial components such as transportation, security, automation, solid-state lighting, and energy management as well as automotive parts such as safety, navigation, entertainment, and fuel efficiency. For instance, an EV power electronics system needs an insulated gate bipolar transistor (IGBT). Due to the surge in EV sales across the globe, IGBTs are anticipated to be in high demand.

• According to the International Energy Agency, in 2022, electric car sales in Europe, the second-largest market, climbed by over 15%, resulting in the sale of more than one in every five electric vehicles.
• The Japan Automobile Dealers Association (JADA) estimates that close to 1.4 million new electric vehicles were sold in 2020. As a percentage of all new automobile sales, electric vehicles represented 36.2%, up from 32.9% in 2017 and 35.2% in 2019. Since the Toyota Prius originally debuted here in Japan in 1997, there has been a significant increase in the demand for HEVs. HEVs accounted for 97.8% of all new electric vehicle sales in 2020, with PHEVs accounting for 1.1%, BEVs for 1.1%, and FECVs for 0.1%.
• All new cars sold in Japan will be environmentally friendly by 2035, according to a goal recently announced by the country's government (GOJ). Clean Energy Vehicles, or CEVs, are the name given to eco-friendly automobiles in Japan to distinguish them from those powered by fossil fuels. For CEVs including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), the GOJ is willing to pay a portion of the purchase price. The most that can be spent on CEV subsidies per vehicle in 2021 is 800,000 Japanese Yen or roughly USD 7,200. Hybrid Electric Vehicles (HEVs) are regarded as environmentally beneficial automobiles, although they are not qualified for the CEV subsidy scheme.

Artificial Intelligence: The Next Growth Catalyst in Discrete Semiconductor

AI is a major catalyst for growth in the discrete semiconductor industry, primarily by driving demand for components that can handle the high power and complex switching requirements of AI applications. The need for energy-efficient power management and precise signal switching in data centers, high-performance computing, and electric vehicles (EVs), all critical to AI's infrastructure, has accelerated the adoption of advanced materials like silicon carbide (SiC) and gallium nitride (GaN).

Market Outlook

• Market Growth Overview: The discrete semiconductor market is expected to grow significantly between 2025 and 2034, driven by the increasing need for power management, conversion, and efficiency in EV charging systems, 5G services and telecommunications, and renewable energy.
• Sustainability Trends: Sustainability trends involve energy efficiency and renewable energy integration, water conservation and recycling, and green chemistry and waste management.
• Major Investors: Major investors in the market include Infineon Technology AG, STMicroelectronics, ON Semiconductor Corporation, and Toshiba Corporation.
• Startup Economy: The startup economy is focused on pioneering new materials, specialized chip design, and ecosystem support.

Market Scope

Market Dynamics

Driver

The increasing demand for discrete semiconductors

The increasing demand for high-energy and power-efficient devices as well as the surge in interest in green energy power generation drives are expected to be the primary drivers affecting the growth of this market. Together with the continued requirement for semiconductors from the automotive industry, there is also a growing demand for MOSFETs and IGBTs in electronics and automobiles. Additionally, the market is growing as a result of the widespread use of wireless and portable gadgets, the robust demand from emerging economies, and the explosive growth of the automotive sector.

Restraints

Price pressure

It is anticipated that rising prices will limit market growth. Because the leading manufacturers are having difficulty obtaining the components they need. The COVID-19 pandemic has exacerbated the problem. The import and export of components are being impacted by tariff interruptions and the trade dispute between the nations, which in turn affects how much it costs to produce discrete devices. Thus, the price pressure is expected to hamper the growth of the market over the forecast period.

Opportunities

Increasing demand for consumer electronics such as smartphone

The growing accessibility of the internet and the rising number of smartphone users throughout the world are expected to increase demand for discrete semiconductors in the near future. In 2020, 3.6 billion people will use smartphones worldwide, according to Oberlo's research. The amount increased by 16.86% year from 2013 to 2020. Additionally, as per Statista, the predicted 6.23 billion smartphone subscriptions in use as of 2021 are anticipated to increase to 7.7 billion by 2027. The potential of the market is therefore increased over the projection period as a result of the rising smartphone user base.

Segment Insights

Type Insights

Based on the type, the global discrete semiconductor market is segmented into MOSFET, IGBT, Bipolar Transistor, Thyristor, Rectifier, and Others. The MOSFET segment is expected to dominate the market over the forecast period. The MOSFET (Metal Oxide Semiconductor Field Effect Transistor) transistor is a semiconductor component that is frequently used in electrical devices for switching and signal amplification. Due to its small size, a MOSFET is either a core or an integrated circuit that is designed and manufactured on a single chip. The area of switching in electronics has changed as a result of the invention of the MOSFET device. Thus, this is expected to drive the segment growth over the forecast period.

End User Insights

Based on the end user, the global discrete semiconductor market is divided into automotive, consumer electronics, communication, industrial, and others. The automotive segment is expected to hold the largest market share over the forecast period. The segment growth is attributed to the growing demand for discrete semiconductors in electric vehicles. The International Energy Agency (IEA) predicts that customers worldwide spent close to US$250 billion on electric vehicle purchases in 2022. Increased sales of EVs caused an abrupt rise in end-use investments in electrification, which in 2022 represented more than 65% of all end-use investments in the transportation industry and were projected to reach 74% in 2022.

Sales of discrete semiconductors, which are essential for creating advanced driver assistance systems (ADAS), regenerative braking systems, sensors & cameras, and other electrified and electric vehicle technologies, have increased dramatically as a result of the rapid expansion of EVs and electrification. Additionally, discrete semiconductors are efficient for parts that can withstand high voltages and harsh environmental conditions. Thus, the growing demand for electric vehicles across the globe is expected to drive the segment growth.

Region Insights

U.S. Discrete Semiconductor Market Size and Growth 2026 to 2035

The U.S. discrete semiconductor market size was estimated at USD 20.47 billion in 2025 and is predicted to be worth around USD 49.89 billion by 2035, at a CAGR of 9.32% from 2026 to 2035.

North America is expected to dominate the market over the forecast period.

The growth in the region is due to the presence of major players including Diodes Incorporated, On Semiconductor and D3 Semiconductor LLC. These key players perform various strategies in the market such as product launch, acquisition, and R&D investment to remain competitive in the region. For instance, in May 2023, The establishment of the onsemi Silicon Carbide Crystal Center (SiC3) at Penn State's Materials Research Institute (MRI) is part of an $8 million strategic partnership that Penn State and Onsemi, a pioneer in intelligent power and sensing technologies, have agreed to through a memorandum of understanding (MOU). Over the next ten years, SiC3 will be funded by Onsemi with $800k annually.

The decarbonization of the global economy is facilitated by silicon carbide (SiC), which is essential for enabling efficiency inelectric cars(EVs), EV charging, and energy infrastructure. SiC academic research made significant strides in the late 1990s and early 2000s but has subsequently slowed down in the United States. This partnership will revive interest in SiC crystal research in the United States. Thus, the increasing collaboration in the region is expected to offer enormous potential for the growth of the discrete semiconductor market over the forecast period.

U.S. Discrete Semiconductor Market Trends

The U.S. critical transition to high-voltage automotive electrification and the infrastructure needs of global 5G networks. Furthermore, the expansion of Industrial IoT and high-performance consumer electronics ensures diversified growth.

The Asia Pacific is expected to grow at the highest CAGR during the forecast period.

The regional growth is attributed to the increasing penetration of electric vehicles along with growing support from government bodies. For instance, According to the India Energy Storage Alliance (IESA), the Indian EV market would grow at a CAGR of 36%. Because India imports about 80% of its crude oil needs, dependency on conventional energy sources is not a viable choice as population growth and vehicle demand increase. By 2030, NITI Aayog intends to see EV sales penetration for all commercial vehicles reach 70%, for private vehicles reach 30%, for buses reach 40%, and for two- and three-wheelers reach 80%. The objective of achieving net zero carbon emissions by 2070 is consistent with this. According to the Ministry of Heavy Industries, 0.52 million EVs have been registered in India over the last three years. EVs experienced strong growth in 2021, which was aided by the government's adoption of beneficial laws and initiatives. Thus, the aforementioned facts support the market expansion in the region.

China Discrete Semiconductor Market Trends

China's booming in industrial automation, global push for EVs and renewable energy is increasing demand for efficient power components and electric vehicles, and digital transformation in the region.

How Did Europe Notably Grow in the Discrete Semiconductor Market?

Europe's shift to Electric Vehicles (EVs) and Advanced Driver-Assistance Systems (ADAS) dramatically increases demand for power-efficient, renewable energy, and innovation in the technology to fuel the market growth.

Germany Discrete Semiconductor Market Trend

Germaine's shift towards industrial automation and energy efficiency, adoption of wide-bandgap material, and increasing production and adoption of electric vehicles fuel the market growth.

Value Chain Analysis of the Discrete Semiconductor Market

• Design and Engineering: This initial stage involves creating the blueprints and architecture for the discrete semiconductor devices using specialized Electronic Design Automation (EDA) tools.
  Key Players: Synopsys, Cadence, Infineon Technologies, ON Semiconductor, STMicroelectronics, and Toshiba Corporation.
• Wafer Fabrication: In this capital-intensive stage, the chip designs are physically manufactured onto raw silicon or other material wafers (like silicon carbide or gallium nitride) in highly advanced foundries.
  Key Players: Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, GlobalFoundries, and
• Infineon Technologies.
  Assembly and Testing (ATP): After fabrication, the wafers are sent for assembly, testing, and packaging (ATP).
  Key Players: ASE Technology Holding, Amkor Technology, JCET Group, Infineon Technologies, ON Semiconductor, and Vishay Intertechnology

Discrete Semiconductor Market Companies

• NXP Semiconductors: NXP is a leading provider of high-performance power discretes and ESD protection devices, specifically optimized for automotive safety and secure connectivity.
• Infineon Technologies AG: As the global market leader in power semiconductors, Infineon provides a massive portfolio of MOSFETs and IGBTs that are foundational to electric vehicle drivetrains and green energy systems.
• Semiconductor Components Industries, LLC (onsemi): Trading as onsemi, this company specializes in intelligent power and sensing technologies, offering a comprehensive range of discrete components for industrial and automotive energy management.
• Fuji Electric Co., Ltd.: Fuji Electric is a pioneer in IGBT technology, producing high-capacity discrete modules that are essential for heavy-duty industrial inverters and railway traction systems.
• Toshiba Electronic Devices & Storage Corporation: Toshiba contributes to the market through a wide array of discrete products, including low-voltage MOSFETs and high-efficiency diodes used in data centers and consumer electronics.
• ABB: While primarily a power system giant, ABB manufactures specialized high-power discrete semiconductors through its Hitachi Energy joint venture to support massive HVDC (High Voltage Direct Current) grids.
• Diodes Incorporated: This company focuses on high-volume, high-quality discrete semiconductors for the consumer, computing, and communications markets.
• Nexperia BV: Nexperia is a world-class leader in essential semiconductors, producing over 100 billion discrete components annually with a focus on efficiency and miniaturization.

Other Major Key Players

• NXP Semiconductors
• Infineon Technologies AG
• Semiconductor Components Industries, LLC
• Fuji Electric Co., Ltd.
• Toshiba Electronic Devices & Storage Corporation
• ABB
• Diodes Incorporated
• Nexperia BV
• D3 Semiconductor
• Eaton
• Hitachi Ltd.
• Mitsubishi Electric Corporation
• STMicroelectronics NV
• Taiwan Semiconductor Manufacturing Company Limited
• Vishay Intertechnology Inc.

Segments Covered in the Report

By Type

• MOSFET
• IGBT
• Bipolar Transistor
• Thyristor
• Rectifier
• Others

By End User

• Automotive
• Consumer Electronics
• Communication
• Industrial
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa