Key Market Overview:
Automotive semiconductors market size was worth over USD 47.9 Billion in 2022 and is projected to surpass USD 115.4 Billion by 2030, registering a CAGR of 11.6% during the forecast period (2023-2030).
Automotive semiconductors are electronic components that are designed and manufactured for usage in the automotive industry. The components are used to control and manage various systems within a vehicle such as an engine, transmission, brakes, and entertainment systems. Moreover, automotive semiconductors are considered as critical components for modern vehicles that provide the necessary processing power and control capabilities required to enable advanced features and functionality. Thus, such semiconductors are largely used to improve safety, reduce emissions, and increase fuel efficiency.
Moreover, growing pace of technology advancements is expected to result in high demand for semiconductors in the automotive industry to meet increased demand for vehicle security and improvements. The technologies responsible for a complete transformation of the global automotive sector are termed as CASE (connectivity, autonomy, shared mobility, and electrification). Thus, several businesses across the automotive ecosystem have initiated to heavily invest in the manufacturing process and product innovation to remain relevant in rapid technology development.
Furthermore, high requirements for electronic components power management in electrically-powered new energy vehicles along with growing power conversion requirements boosts the value of automotive semiconductors. For instance, the worth of automotive electronic components BOM (bill of materials) is expected to witness significant increase by 2025, boosted by the usage of electronic components in electric powertrain and battery management systems such as powertrain domain controller DCU, inverters, various sensors, and others.
Automotive Semiconductors Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||115.4 Billion|
|CAGR (2022-2030)||11.6 %|
|By Component||Processor, Analog IC, Discrete Power, Sensor, Memory, Others|
|By Propulsion Type||Internal Combustion Engine, Electric|
|By Vehicle Type||Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle|
|By Application||Powertrain, Safety, Body Electronics, Chassis, Telematics & Infotainment|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Infineon Technologies AG, Analog Devices, Inc., NXP Semiconductors, Renesas Electronics Corporation, Robert Bosch GmbH, Continental, ROHM CO., LTD, Semiconductor Components Industries, LLC (Onsemi), STMicroelectronics, Texas Instruments Incorporated, TE Connectivity, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, Melexis, Valeo|
The adoption of intelligent technologies and vehicle electrification fuels the demand for automotive semiconductors due to the rising demand for new energy vehicles. For instance, the sales of global new energy vehicles are expected to surpass 21 million units by 2025, accounting for a five-year compound growth rate of over 37.2%. Furthermore, increased demand for data center & edge hardware and the Internet of Things applications within the automotive industry boosts the market\'s demand for semiconductor products. Moreover, constant changes in domain-centralized powertrain electrical and electronics architecture to meet the shifting requirements of automobile design drives the high demand for automotive semiconductor in terms of allocating electronic components within vehicle chassis.
The high development costs and expensive production of semiconductor technology for several automotive applications mainly hamper the automotive semiconductors market growth. Further, growing risks related to cybersecurity also restrict market expansion due to the presence of vulnerabilities in semiconductor components. Also, strict government regulations on reducing the environmental impact of automobiles result in limited adoption of such semiconductors due to risks of improper E-waste management. Moreover, the high concerns in terms of operation failures in extreme environmental conditions primarily hinder market growth due to low resistance to extreme cold and heat temperatures.
The scope of advancements in advanced sensors, processors, and other components used in autonomous vehicles is anticipated to offer lucrative opportunities for market expansion for improvements in features such as object recognition, collision avoidance, and self-driving capabilities. Moreover, emerging improvements in connectivity within vehicles are estimated to offer opportunities for advancements in high-speed data transfer and reliable wireless communication in terms of vehicle-to-cloud services and advanced telematics.
Automotive Semiconductors Market Segmentation:
The component segment is divided into processor, analog IC, discrete power, sensor, memory, and others. The sensor segment is anticipated to support market growth in terms of value and volume during the forecast period. Growing innovations in automobiles are expected to result in the creation of improved sensors for collision avoidance braking, automatic parking functions, and lane-change assistance. Moreover, the processor segment is estimated to witness significant growth with the fastest CAGR growth during the forecast period. Rising focus on vehicle safety by original equipment manufacturers (OEMs) is estimated to support the demand for processors in vehicle engines. Such processors are anticipated to find major applications within a vehicle to automatically synchronize the angular speeds of the entrance and output power stream without switching off the clutch while carrying out gear shifting.
By Propulsion Type
The propulsion type segment is bifurcated into internal combustion engine and electric. The electric segment is estimated to contribute substantial shares to the market growth during the forecast period. Favorable adoption of electric and hybrid vehicles among the population, mainly due to government regulations is anticipated to boost the automotive semiconductors market demand to meet the requirement of efficient functioning of electronic components within such vehicles. Also, the increased initiatives by the automotive sector to introduce fully autonomous vehicles completely equipped with 5G communications, LiDAR sensors, and image-recognition systems are estimated to support the demand for automotive semiconductors at an eight to ten times increased rate as compared to non-autonomous vehicles.
By Vehicle Type
The vehicle type segment is separated into passenger cars, light commercial vehicles, and heavy commercial vehicles. The light commercial vehicle (LCV) segment accounted for the largest share contribution to the market growth in 2022. Increased demand for last-mile delivery services in terms of logistics to meet consumer preferences for e-commerce supports the growing production and sales of light commercial vehicles. Also, large-scale integration of vehicle safety features within systems such as adaptive cruise control, lane departure warning, and collision avoidance systems propels the demand for automotive semiconductors, especially radar sensors, and cameras, in LCVs. Furthermore, the passenger car segment is also anticipated to support market growth in terms of value and volume. Favorable adoption of passenger vehicles among the population due to growing standards of living, especially in developed countries such as the US, UK, and Germany supports the demand for automotive semiconductors to improve vehicle safety and control various systems within a vehicle such as the engine, transmission, brakes, and entertainment systems.
The application segment comprises powertrain, safety, body electronics, chassis, and telematics & infotainment. The telematics & infotainment segment is estimated to boost the automotive semiconductors market statistics with a substantial share contribution during the forecast period. Growing dependence on telematics for real-time information on traffic, weather, and other important factors is expected to support segmental growth. Additionally, the increased demand for infotainment systems to provide access to entertainment and communication features such as audio, video, and navigation also supports segmental growth. Moreover, the powertrain segment is expected to support market growth in terms of volume. Strict emissions regulations by several regulatory authorities are anticipated to support the large adoption of sensors and microcontrollers for advanced powertrain technologies such as gasoline direct injection and turbochargers.
The regional segment comprises North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Asia Pacific accounted for the largest share contribution in 2022. The established presence of manufacturing facilities in the \"Big Four\" semiconductor regions, namely South Korea, Japan, Mainland China, and Taiwan (China), majorly offers a favorable platform for market expansion in the Asia Pacific region. The mentioned countries account for approximately 50% of the total global semiconductor manufacturing due to access to advanced technology and the large availability of manufacturing capital. Also, the increased rate of R&D and innovations in terms of product rising technology standards propels the market demand in the region.
Moreover, North America is anticipated to support the market growth in terms of value and volume due to the large-scale adoption of artificial intelligence and 5G evolution in terms of digitalization in mobility.
Automotive Semiconductors Market Competitive Landscape:
The market of automotive semiconductors is highly competitive and on a rapid evolvement which is driven by advancements in technology, shifts in consumer preferences, and rising demand for connected and autonomous vehicles. Thus, such increased demand for autonomous vehicles is expected to intensify the market competition for existing market players and new entrants in the market circumstances. Listed are major market players that currently comprise the market concentration–
• Infineon Technologies AG
• Analog Devices, Inc.
• NXP Semiconductors
• Renesas Electronics Corporation
• Robert Bosch GmbH
• ROHM CO., LTD
• Semiconductor Components Industries, LLC (Onsemi)
• Texas Instruments Incorporated
• TE Connectivity
• TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION,
• In February 2022, Bosch announced plans to expand the wafer fab located in Reutlingen as part of the company\'s efforts to address the ongoing global chip shortage. Bosch aims to implement the initiative for increasing the manufacturing capacity to meet the increasing demand for chips that are used in mobility and IoT applications.
• In January 2023, Onsemi, a company specializing in smart power and sensing technologies, revealed that Kia Corporation has chosen onsemis EliteSiC family comprising silicon carbide (SiC) power modules for the corporation\'s EV6 GT model.
• In January 2023, Toshiba Electronic Devices & Storage Corporation (Toshiba) introduced the 40V N-channel power MOSFETs called XPQR3004PB and XPQ1R004PB for automotive use. The MOSFETs feature the latest L-TOGL™ package, which includes large transistor outline gull-wing leads, and offer a low on-resistance with a high drain current rating. Additionally, a latest high-heat dissipation package is also included to support larger currents in automotive equipment.