Automotive Semiconductor Market Overview:
The automotive semiconductor market size is poised for substantial growth, with the latest report from Market Research Future (MRFR) projecting an impressive Compound Annual Growth Rate (CAGR) of 8.6% during the forecast period spanning from 2022 to 2030.
Automotive Semiconductor Drivers
One of the primary drivers propelling this growth is the increasing adoption of environmentally friendly alternative fuel vehicles, particularly hybrid electric vehicles. This trend is expected to significantly contribute to market expansion throughout the forecast period. Notably, the International Council on Clean Transportation (ICCT) reported that global electric vehicle production surpassed 2 million units per year in 2018, with more than 80,000 electric vehicles sold annually.
Additionally, several other factors are enhancing the value of the automotive semiconductor market. These include the expanding production of automobiles, the growing utilization of automotive semiconductors in active safety systems and autonomous driving technologies, in-vehicle networking and connectivity solutions, LED lighting applications, efforts to improve fuel efficiency and reduce emissions, advancements in vehicle electrification, as well as innovations in powertrain, interiors, and vehicle body systems. Furthermore, the development of connected cars equipped with advanced electronics is also contributing to the market’s growth.
Automotive Semiconductor Key Players:
Prominent companies featured in the global automotive semiconductor industry report include:
· NXP Semiconductor NV
· Infineon Technologies AG
· Renesas Electronics Corporation
· STMicroelectronics N.V.
· Toshiba Corporation
· Texas Instrument Inc.
· Robert Bosch GmbH
These key players are expected to play a crucial role in driving innovation and growth within the automotive semiconductor market.
Automotive Semiconductor 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.
Automotive Semiconductor 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.
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.
Automotive Semiconductor 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.
Automotive Semiconductor 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.
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.
North America is set to experience significant development within the automotive semiconductor market during the forecast period. Several key factors are driving this growth in the region, including rapid economic advancement, a rising demand for electric vehicles (EVs), increasing adoption of intelligent transportation systems, the integration of automated safety technologies, a surge in EV production, and the presence of numerous prominent industry players.
In the United States, for instance, the National Highway Traffic Safety Administration highlights the continuous evolution of automotive technology, with a focus on delivering enhanced safety benefits and Advanced Driver Assistance Systems (ADS). Notably, American semiconductor pioneer Texas Instruments is currently at the forefront of the industry, offering top-notch solutions for applications such as ultrasound, Lidar, camera, radar, and sensor combinations. These advancements further contribute to the robust growth of the automotive semiconductor market in North America.