Global Automotive Semiconductor Market 2022–2030

Reports Description

According to Custom Market Insights (CMI), The Global Automotive Semiconductor Market size was estimated at USD 52 Billion in 2021 and is expected to hit around USD 95 Billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 7% from 2022 to 2030.

Our research report offers a 360-degree view of the Automotive Semiconductor market’s drivers and restraints, coupled with the impact they have on demand during the projection period. Also, the report examines global opportunities and competitive analysis for the Automotive Semiconductor market.

• The majority of vehicle advancements in vehicle development are covered by automotive semiconductors, which are also the primary driver of demand growth. The newest cars come with amenities like heads-up displays, phone connectivity, comfort, autonomous driving assistance, and vehicle performance. Additionally, as automobiles become more complex, the demand for automotive semiconductors is rising quickly and supporting the automotive industry’s strong long-term growth.
• The key market factors that have raised the demand for semiconductor wafers are the electrification and automation of vehicles. Different vehicle devices, including navigation control, entertainment systems, and collision detection systems, utilize semiconductor ICs with varied functionality. Sales of automobiles are impacted by the introduction of these features.
• The serializer-deserializer physical layer interface, or A-PHY, is anticipated to be the top connection solution in the future as the automotive industry rushes to standardization. It is clear that the automotive industry is integrating around this standard, and it is possible that A-PHY will soon overtake other connectivity options in automobiles all over the world.
• Since a few years ago, cutting-edge technology like matrix LED lighting, improved LiDAR sensors, and ADAS systems have become more frequently used in the mass manufacture of automobiles. The business has also seen advancements in EV batteries, 3D mapping applications, and augmented reality gadgets like head-up displays.
• The sector’s newest generation of mobility solutions has also been made possible by 5G networks. Sales of ADAS are anticipated to soar in the future due to the surging demand for safety features that have been created to prevent collisions and accidents by providing technologies that warn drivers about potential problems.
• Additionally, consumers used to great user experiences are significant drivers for connected vehicles. Thus, infotainment systems have changed from bulky, purpose-built objects into svelte, linked, upgradeable, and integrated platforms. They need chips with the newest technological features. Therefore, it is projected that the future of linked and autonomous cars will present new prospects for the semiconductor sector.

Report Scope

The global Automotive Semiconductor market research report offers an in-depth analysis of the global market size, which is further segmented into regional and country-level market size, and segmentation market growth. Also, it provides the market share, sales analysis, competitive landscape, the impact of domestic and global market participants, trade regulations, value chain optimization, recent key developments, strategic market growth analysis, opportunities analysis, product launches, and technological innovations. The scope of the study includes market sizing and forecast for segmentation by offering, installation component, application, vehicle type, and geography.

Report Scope

Key Market Dynamics

• An automotive semiconductor is used to manage electrical control unit operations, control fail-safe systems, and automotive fault-tolerant systems. In these systems, the semiconductor manages errors in the vehicle (such as broken lights, the anti-lock brake interface, and the accelerator). It communicates these errors to the microcontrollers and safety systems installed throughout the vehicle. For instance, fault tolerance would be emphasized if a car lost control on slippery roads. When these events occur, sensors and semiconductor devices recognize them, and the anti-lock braking system is triggered when the driver applies the brakes. As a result, semiconductors are a crucial part of the automotive industry, and over the course of the projection period, the market is expected to grow at a quick rate.
• The need for safety technology, including parking assistance, lane departure warnings, collision avoidance systems, electronic stability control, tire pressure monitors, traction control, airbags, and telematics, is increasing as a result of the increase in road accidents around the world. Automotive semiconductors are a crucial part of many advanced driver assistance systems (ADAS) technologies that let ADAS systems function properly, identify and classify items in the path of the vehicle, and then warn the driver of the immediate surroundings and the state of the road.
• These systems can also autonomously slow down or stop the car depending on the road conditions due to calculations conducted by semiconductors and related components. Traffic-related deaths have significantly increased over the past few years and now account for the world’s highest mortality rate.
• The demand for electric and hybrid cars is rising on a global scale. The principal factor anticipated to accelerate the emergence of an electrical vehicle mainstream market in the short term is the cost reduction of parts such as lithium-ion batteries, sensors, and microcontrollers. Additionally, governments all over the world are vigorously promoting electric vehicles due to their crucial role in lowering carbon emissions and tackling air pollution. Currently, only 1% of newly marketed vehicles are electric, but as component costs decrease, both consumers and manufacturers are switching to electric vehicles.
• Internal combustion engine, or ICE, powered cars have long been the driving force behind innovation in the automotive industry. However, as autonomy and electrification become more widely used in the automobile industry, it is projected that the need for high-tech vehicles with improved functionality, supported by semiconductors and processors, will rise.

The Passenger Vehicle Segment Led the Automotive Semiconductor Market

• As the trend toward mobility-on-demand gains traction, passenger cars place a greater emphasis on greener technologies. By providing incentives and tax breaks to e-passenger cars like e-buses, several governments are attempting to increase the use of electric vehicles in public transportation in order to reduce CO₂
• Thus, there will be a higher demand for autonomous vehicles as a result of the widespread deployment of this cutting-edge technology. This is where e-drive systems are useful for lightening the vehicle’s weight, offering a great chance for manufacturers to implement several solutions, including discrete power devices, integrated ICs, sensors, and other parts, to improve their passenger vehicles.
• India, for example, established regulations for Corporate Average Fuel Efficiency that mandate manufacturers boost their fuel efficiency by 30% or more starting in 2022. Battery management systems, among other things, help businesses like Toshiba and NXP Semiconductor develop fuel-saving technology in passenger cars by storing the electric energy created during deceleration.
• In addition, legislation mandating various ADAS versions in passenger vehicles has been passed in several North American, European, and Asian countries. For instance, the European Union has unveiled Vision Zero, a strategy to eliminate traffic fatalities by the year 2050. The authority wants to reduce fatalities and injuries by half by 2030.
• The strategic plan further specifies that by 2022, new passenger vehicles must come equipped with critical safety technologies, including autonomous emergency braking, lane departure warning, and weariness & attention recognition. To increase safety ratings and draw in more customers, major automakers deploy ADAS technology.
• Top automakers, as a result, either standardize safety features across all models or provide them as options. Overall, as ADAS features become more prevalent, there will be a rise in demand for ultrasonic sensors, radar sensors, sophisticated automotive ICs, and LiDAR.

Competitive Landscape

The market is moderately consolidated with a number of national and regional firms. Market participants highlight acquisitions as a strategy for expanding their product portfolios and opening up new markets.

• 2022: Infineon Technologies AG has expanded its selection of high-bandwidth, low-pin-count memory solutions with HYPERRAM 3.0. The device has a new, 16-bit extended HyperBus interface with a throughput increase of 800 MBps. With HYPERRAM 3.0, Infineon provides a selection of low-pin-count, high-bandwidth memory. It is perfect for RAM extension applications, such as automotive vehicle-to-everything systems (V2X).
• 2021: STMicroelectronics entered into a partnership with startup Autobahn. With the backing of STMicroelectronics through semiconductors, the main focus will be provided on smart mobility for electric and smart linked driving vehicles.

Prominent Players:

• Analog Devices Inc.
• NXP Semiconductors
• Infineon Technologies AG
• Robert Bosch GmbH
• Renesas Electronics Corporation
• ROHM CO. LTD
• Semiconductor Components Industries LLC
• TOSHIBA CORPORATION
• Texas Instruments Incorporated

The global Automotive Semiconductor market is segmented as follows:

By Component

• Sensors
• Processors
• Memory Devices
• Discrete Power Devices
• Integrated Circuits

By Application

• Chassis
• Comforts/Entertainment Unit
• Safety
• Power of Electronics
• Body Electronics
• Others

By Vehicle Type

• Passenger Vehicle
• Heavy Commercial Vehicle
• Light Commercial Vehicle
• Others

On the basis of Geography

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America

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