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Tuesday, December 5, 2023

Global Automotive Semiconductor Market Analysis Analysis, Technologies, & Forecasts

 Automotive Semiconductor Market Analysis 

The automotive semiconductor market size will grow at an 8.6% CAGR in the forecast period (2022 2030), states the latest Market Research Future (MRFR) report.

Drivers 

Growing Adoption of Electric Vehicles to Boost Market Growth 

The growing adoption of eco-friendly alternative fuel vehicles like hybrid electric vehicles will boost market growth over the forecast period. According to the (ICCT), global EV production crossed over 2 million per year in 2018 and sold more than 80,000 EVs per year.

Additional factors adding to the automotive semiconductor market value include the growing production of automotive, increasing application of automotive semiconductors in active safety and autonomous driving, in-vehicle networking and connectivity, LED lighting, fuel economy and emissions reduction, vehicle electrification, and powertrain, interiors, and body, and development of connected cars with advanced electronics.

Opportunities 

Policies Imposing Perilous Safety Arrangements in Cars to offer Lucrative Opportunities 

Various policies imposing greater perilous safety arrangements in cars like agile automotive proposals, airbags, and lane departure warning for more efficacy, communication systems, and directives for efficient route-finding will offer lucrative opportunities for the market over the forecast period.

Restraints 

Rising Cost of Overall Vehicle to act as Market Restraint 

The rising cost of overall vehicle and maintenance between quality and cost of product may act as market restraint over the forecast period.

Challenges 

Constant Optimization to act as Market Challenge 

The continuous optimization of component size, high regulations, and shortage of semiconductor chips may act as market challenges over the forecast period.

COVID-19 Analysis 

During the COVID-19 outbreak, the automotive semiconductor market experienced a negative impact as the key automotive fabricating plants have totally stopped their production due to the government imposed lockdown by numerous countries across the globe. Besides, the crisis caused unrealistic disturbance in the supply chain network and production. This essentially influenced on research and development investments and capital. Further, restrictions imposed by the government on transportation endured a boycott which impacted the Just in Time strategies that ended the production plans prompting standing by and also plan closure.

Market Segmentation 

The global automotive semiconductor market is segmented based on vehicle type, application, and component.

By component, the integrated circuits segment will lead the market over the forecast period at a high CAGR.

By application, the power electronics segment will dominate the market over the forecast period and at a significant CAGR.

By vehicle type, passenger cars will spearhead the market over the forecast period at a healthy CAGR for the high demand for passenger cars across the world. Improved disposable income and rising middle-class population have boosted the need for passenger cars in Malaysia, Indonesia, Thailand, India, and China among others.

Automotive Semiconductor Market Key Players 

Key Players

  • NXP Semiconductor NV
  • Infineon Technologies AG
  • Renesas Electronics Corporation
  • STMicroelectronics N.V.
  • Toshiba Corporation
  • Texas Instrument Inc.
  • Robert Bosch GmbH
  • Micron Technology
  • ON Semiconductor Corporation
  • Analog Devices Inc

Automotive Semiconductor Market Regional Analysis 

APAC to Steer Automotive Semiconductor Market 

The APAC region will steer the market over the forecast period. The region being a major automotive hub with the market share in terms of vehicle production and sales, growing Chinese automotive market, the market has evolved into the largest producer of vehicles, the region being the largest consumer of automotive semiconductor across the globe, increasing growth of automotive industry in China, Japan, and India, and the presence of leading semiconductor manufacturers in the region are adding to the global automotive semiconductor market share in the region.

Besides, limited adoptability of sophisticated automobiles, key vendors dealing in the market, growing adoption of electric vehicles, growing automotive manufacturing, and collaborations between automotive OEMs and semiconductor manufacturers are also adding market growth. As per India’s NITI Aayog report, more than 7.35 million electric vehicles had been extended in 2020 and likely to develop 26.52 million by 2030. Toshiba for instance offers different automotive semiconductor devices such as the image recognition processor that is designed to develop driving security. The company offers leading-edge semiconductor technologies from a future point of view to offer comprehensive driver assistance solutions which imitate human eyes and other forms of complicated human senses.

North America to Have Significant Development in Automotive Semiconductor Market 

North America will have significant growth in the market over the forecast period. Rapid economic development, growing need for electric vehicles, rising adoption of intelligent transportation system, adoption of automated safety technologies, growing production of EVs, and the presence of several key players are adding to the global automotive semiconductor market growth in the region.

As per the National Highway Traffic Safety Administration, in the United States, the constant evolution of automotive technology is aiming to deliver greater safety benefits and ADS. Texas Instruments, for instance, is an American pioneer in the semiconductor space presently providing best in class solution for ultrasound applications, Lidar, camera, radar, and sensor combination.

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