Europe Advanced Packaging Market to Reach USD 20.04 Billion by 2034, Driven by Automotive and Defense Sectors
The Europe advanced packaging market is projected to grow from USD 9.73 billion in 2025 to USD 20.04 billion by 2034, driven primarily by the automotive and defense sectors. Influenced by the EU Chips Act, the market is expected to expand at a CAGR of 8.36%, with the aerospace and defense sector anticipating the fastest growth at 26.3%. Key challenges include high capital costs and a shortage of skilled workforce, while France and the UK are notable players in the market.
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The Europe advanced packaging market was valued at USD 9.73 billion in 2025 and is projected to grow at a CAGR of 8.36%, reaching USD 20.04 billion by 2034. The market is influenced by the EU Chips Act, aiming to strengthen semiconductor manufacturing and promote advanced packaging capabilities.
Major players include Qualcomm, Intel, IBM, and STMicroelectronics. The automotive segment led the market with a 38.2% share in 2024, driven by demand for electrification and advanced electronic systems.
The aerospace and defense sector is expected to grow at the fastest rate of 26.3% due to increased funding for advanced electronics. Challenges include high capital costs for specialized equipment and a shortage of skilled workforce in advanced packaging engineering. France holds an 18.7% market share, with the UK also expanding due to its strengths in compound semiconductors and defense electronics.
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