Middle East and Africa Analog Semiconductor Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2025-2034)

The Middle East and Africa analog semiconductor market size reached around USD 4.26 Billion in 2024. The market is projected to grow at a CAGR of 6.40% between 2025 and 2034 to reach nearly USD 7.92 Billion by 2034. The market growth can be attributed to the expansion of telecommunication infrastructure in African countries and the rapid growth of military and defence spending. The development of smart cities and increasing partnership with different countries is expected to favourably impact the market dynamics.

Middle East and Africa Analog Semiconductor Market Report Summary

Market Size 2024

• USD Billion 4.26

Market Size 2034

• USD Billion 7.92
• CAGR 2025-2034
• 6.40%

CAGR 2025-2034- Market by Country

• Saudi Arabia
• 7.3%

CAGR 2025-2034 - Market by Country

• United Arab Emirates
• 6.8%

CAGR 2025-2034 - Market by Form Factor

Integrated Circuits (ICs)

• 6.9%

CAGR 2025-2034 - Market by Components

• Sensors
• 7.2%

Market Share by Country 2024

• Nigeria
• 15.2%

Middle East and Africa Analog Semiconductor Market Growth

Analog semiconductors are extensively used in electronic warfare devices and advanced radar systems. In 2022, the annual military spending by North Africa and Middle East governments recorded a y-o-y growth of 5% to USD 203 billion. Despite recent budget cutbacks, Middle Eastern nations remain among the world’s highest defence spenders as a percentage of GDP, including Qatar (7%), Oman (5.2%), Jordan (4.8%), and Israel and Kuwait (4.5%). This is creating a favourable Middle East and Africa analog semiconductor market outlook.

In 2022, Saudi Arabia recorded a y-o-y growth of 16% in military defence spending, an amount which reached USD 75 billion. It spends nearly 7.4% of its GDP on enhancing its military capabilities, including fighter aircraft, secure information exchange devices, and other advanced systems. Thus, it is expected to dominate the Middle East and Africa analog semiconductor market share in the coming years.

The Russia-Ukraine conflict has further increased oil prices globally, which is enabling Middle Eastern governments to increase their export revenues and expand their defence-industrial ambitions. In 2022, the government of Qatar spent nearly USD 8 billion on bolstering its military capabilities, thereby recording a y-o-y growth of 34.5%. This is expected to sustain the demand for analog semiconductors in the region in the coming years.

Key Trends and Developments

Focus on smart cities development; increased military and defence spending; emergence of local semiconductor manufacturing; and integration with emerging technologies are the major factors driving the Middle East and Africa analog semiconductor market growth.

September 2024

Polymatech Electronics announced its decision to invest nearly USD 16 million to develop a new chip production facility in Bahrain. Expected to be named “Atri”, the facility is expected to produce essential 6G and 5G components for electronic devices in Hidd (Bahrain Industrial Area).

May 2024

Semiconductor Technologies Ltd. (based in Kenya) signed an agreement with the U.S. Trade and Development Agency to construct a new chip fabrication facility. It can potentially attract an investment of USD 1 million under the CHIPS and Science Act, thereby favouring the Middle East and Africa analog semiconductor market development.

October 2023

Clintonel Innovation Centre established a partnership with ChipLab, a Nigerian startup company, to bolster the development of new microchips that are extensively used in smartphones, laptops, automobiles, aeroplanes, and other technology products.

July 2023

The Qatar government announced a joint investment plan for producing 65nm chips in Turkey worth over USD 60 million. This is aimed at bolstering Turkey’s vision of developing next-generation automobiles indigenously. By 2032, its native EV brand Togg is expected to produce over 1 million automotive units. This is expected to drive the demand for analog semiconductors over the forecast period.

Growing focus on smart cities development

Governments in the region are heavily investing in smart city projects, such as Dubai’s Smart City initiative. These projects rely on analog semiconductors for IoT devices, environmental sensors, and energy-efficient lighting systems. Analog components are pivotal in enabling data collection, communication, and energy management, making smart cities more sustainable and technologically advanced.

Increased military and defence spending

Countries in the Middle East, such as Saudi Arabia and the UAE, are ramping up defence budgets, creating opportunities for analog semiconductors in advanced radar systems, electronic warfare, and secure communication networks. These components are essential for achieving high precision and reliability in military technologies, thereby increasing the Middle East and Africa analog semiconductor market revenue.

Emergence of local semiconductor manufacturing

Recognising the need for self-reliance, some countries in the region are establishing local semiconductor manufacturing facilities. These initiatives aim to reduce dependency on imports and strengthen the regional supply chain. By fostering domestic production, the Middle East and Africa are paving the way for greater innovation and cost efficiency in analog semiconductor manufacturing. This can facilitate the market expansion.

Integration with emerging technologies

The growing adoption of artificial intelligence (AI), machine learning, and robotics in industries like healthcare, manufacturing, and logistics is driving demand for analog semiconductors. These components are crucial for enabling real-time data processing, high-precision sensing, and seamless integration with digital systems. The region’s focus on emerging technologies is opening new avenues for analog semiconductor applications.

Middle East and Africa Analog Semiconductor Market Trends

Focus on smart cities development

To reduce the Saudi economy’s dependency on oil exports, the national government is investing USD 500 billion for the construction of the Neom megacity, which is expected to stretch over 105 miles of desert towards the Red Sea. It is expected to resemble Saudi Arabia’s growing technological prowess in developing real estate, featuring glow-in-the-dark beaches, an artificial moon, flying taxis, robot butlers, and ski slopes. By 2030, it is expected to house nearly 300,000 people, including many high-net-worth individuals. The ongoing development of similar projects in the Middle East is expected to drive the Middle East and Africa analog semiconductor market growth in the coming years.

Expansion of telecom infrastructure in Africa

With expanding 5G networks and improvements in telecommunication infrastructure, analog semiconductors are increasingly used in RF amplifiers, signal converters, and network equipment. These components support faster data transmission and greater network efficiency, meeting the region's rising connectivity needs in urban and rural areas. This is one of the key Middle East and Africa analog semiconductor market trends. Kenya has one of the highest numbers of 5G subscribers and recorded a quarterly growth of nearly 80,000 users in Q2 of 2024. Besides, telecommunications advancements in countries like Egypt and Uganda are also fostering innovation in smart devices and IoT applications, thereby contributing to market growth.

Middle East and Africa Analog Semiconductor Industry Segmentation

The report titled “Middle East and Africa Analog Semiconductor Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• General Purpose
• Application Specific

Breakup by Components

• Data Converters
• Amplifiers
• Power Management ICs
• Interface ICs
• Sensors
• Others

Breakup by Form Factor

• Integrated Circuits (ICs)
• Discrete Components

Breakup by End Use

• Aerospace and Defence
• Automotive
• Consumer Electronics
• Healthcare
• Industrial
• Others

Breakup by Country

• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others

Middle East and Africa Analog Semiconductor Market Share

Based on components, the market is segmented into sensors, power management ICs, data converters, amplifiers, and interface ICs, among others. Over the forecast period of 2025-2034, sensors are expected to grow at a CAGR of 7.2% as they are critical to detect physical parameters and convert them into electrical signals for processing, boosting their usage in applications such as healthcare, automotive, consumer electronics, and industrial automation. Advancements in smart homes, IoT, wearables, and automotive applications (ADAS) are expected to boost the demand for sensors.

Meanwhile, power management ICs are estimated to grow at a CAGR of 7.0% between 2025 and 2034 due to the growing use of electric vehicles and the rising requirement for IoT devices and industrial systems. The surging demand for green technologies and the surging adoption of energy-efficient devices are driving the segment’s growth.

CAGR 2025-2034 - Market by

• Components
• Sensors
• 7.2%
• Power Management ICs
• 7.0%
• Data Converters
• Amplifiers
• Interface ICs
• Others

Leading Companies in the Middle East and Africa Analog Semiconductor Market

Major market players are investing in renewable energy, EV infrastructure, and industrial automation. Moreover, different companies like Analog Devices and Infineon Technologies are enhancing local manufacturing and R&D capabilities. They are focusing on applications in automotive, healthcare, and 5G, leveraging government-backed initiatives and smart city projects to drive innovation and meet growing regional demand. Thus, such initiatives are expected to expand their Middle East and Africa analog semiconductor market development.

Microchip Technology Inc.

Microchip Technology Inc. was founded in 1987 and is headquartered in Arizona, United States. It is a semiconductor manufacturing company that serves over 125,000 customers across various industrial segments, including automotive, consumer goods, communications, and aerospace and defence, among others.

Analog Devices, Inc.

Analog Devices, Inc. was founded in 1965 and is headquartered in Massachusetts, United States. It is a leading manufacturer of novel semiconductor designs and reported revenues worth USD 9 billion in FY 2024.

Infineon Technologies AG

Infineon Technologies AG was founded in 1999 and is headquartered in Germany. It is engaged in designing, producing, and selling smart power systems and reliable semiconductor solutions for wide-ranging applications, such as consumer electronics and automotive.

Texas Instruments Inc.

Texas Instruments Inc. was founded in 1930 and is headquartered in Texas, United States. It specialises in producing microcontrollers, power management solutions, and analog semiconductors, among other items.

Other players included in the Middle East and Africa analog semiconductor market report are NXP Semiconductors NV, ON Semiconductor Corp., Renesas Electronics Corp., and MediaTek Inc., among others.