Global automotive semiconductor market is expected to be valued at USD 58770.1 million in 2023 and to reach a valuation of USD 115609.68 million by 2033. The demand for Automotive Semiconductor is estimated to grow at a steady 7% CAGR, with the United Kingdom, the USA, China, and India emerging as key producers.
The automotive semiconductor market is experiencing several trends that are shaping the future of the industry. One of the most significant trends is the growing demand for electric components and hybrid vehicles. As the world focuses more on sustainable forms of transportation, the need for electric and hybrid vehicles is increasing, which is driving demand for semiconductor technology. These vehicles require advanced semiconductor components such as power electronics, microcontrollers, and sensors that enable the efficient operation of electric components powertrains and battery management systems.
Another trend in the automotive semiconductor market is the advancements in ADAS technology. The driver-assistance systems are becoming more sophisticated and are being equipped with features like lane departure warning, adaptive cruise control, and automatic emergency braking. This trend is driving the demand for semiconductors that enable these features, such as image sensors, radar, and LiDAR systems.
The adoption of autonomous vehicles is also driving the need for more advanced semiconductor technology. Autonomous vehicles rely heavily on semiconductor components such as LiDAR, radar, and camera systems to navigate the roads and avoid accidents. The development of this technology is driving the need for more advanced semiconductor components that can handle the complex processing requirements of autonomous driving systems.
The rise of connected car technology is another trend that is driving demand for advanced semiconductor technology. With the increasing use of telematics, infotainment, and vehicle-to-vehicle communication, there is a growing need for microcontrollers, sensors, and processors that can support these systems. These components enable the connectivity between the car and other devices, making driving safer, more comfortable, and more enjoyable.
Finally, the automotive semiconductor market is adopting Industry 4.0 technology, such as IoT and AI. The automotive industry is exploring new ways to use these technologies to enhance manufacturing processes, improve vehicle performance, and increase customer satisfaction. This trend is driving demand for more advanced semiconductor technology that can support these systems.
| Attributes | Details |
|---|---|
| Automotive Semiconductor Market CAGR (2023 to 2033) | 7% |
| Automotive Semiconductor Market Size (2023) | USD 58770.1 million |
| Automotive Semiconductor Market Size (2033) | USD 115609.68 million |
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| Market statistics | Details |
|---|---|
| H1,2021 (A) | 6.4% |
| H1, 2022 Projected (P) | 6.9% |
| H1, 2022 Outlook (O) | 7.5% |
| BPS Change: H1,2022 (O)-H1,2022(P) | (+) 61 ↑ |
| BPS Change: H1,2022 (O)-H1,2021(A) | (+) 107 ↑ |
Future Market Insights analysis of the automotive semiconductor market provides reasoning for the change in BPS points for H1,2022(O)-H1,2022(P) and H1,2022(O)-H1,2021(A). Implementation of IoT technology in automobiles, developments in the technology of vehicles, and development in electric and solar-powered vehicles have led to the growth of the automotive semiconductor market.
H1,2022(O)-H1,2022(P) witnessed a growth of 61 BPS points. Sales of vehicles have increased in the year 2022. 5G technology was quick to be implemented by automotive semiconductor vendors, offering consumers with internet connection inside the vehicle. Technical applications of IoT, such as connected cars, are in their growth phase. However, its application in cars has helped the automotive semiconductor market grow.
H1,2022(O)-H1,2021(A) witnessed a growth of 107 BPS points. There is a growth in sales of automobiles in the year 2021, with major markets being countries with high populations, like China, India, and the United States. Technology that could be used for automating the driving process of a car boosted the market for automotive semiconductors.
Technology to keep track of heavy motors like trucks was another driver. Several cars now implement front-facing and back-facing cameras to assist with parking.
The sales of automotive semiconductors expanded at a CAGR of 6% from 2018 to 2022, owing to the increased adoption of advanced automotive semiconductors.
Short-term Outlook: Technological proliferation in the automotive industry has substantially increased in recent years, and this trend is expected to be rife over the forecast period as well. Semiconductors have led the technological transformation of the automotive industry, and hence, demand for semiconductor manufacturing has also risen.
Medium-term Outlook: Rising use of semiconductors in automotive LiDAR sensors, matrix LEDs, advanced driver assistance systems (ADAS), etc., is expected to propel the sales of automotive semiconductors. The increasing popularity of autonomous vehicles is expected to also give further impetus to semiconductor manufacturing.
Long-term Outlook: Semiconductor manufacturers for cars are expected to keep focusing on the integration of advanced technologies and top-notch safety features to enhance their offerings and increase their sales potential. Rising sales and production of cars across the world are expected to provide high revenue opportunities for automobile computer chip manufacturers.
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Electrification of Vehicles: The shift towards electric and hybrid vehicles is one of the major trends in the automotive industry, and it is driving the need for more advanced and efficient semiconductors. Battery management systems, power electronics, and electric motor drives all require specialized semiconductors that can handle high voltages and currents while also maintaining high efficiency. As the demand for electric and hybrid vehicles continues to grow, the demand for these types of semiconductors is expected to increase.
Autonomous Driving: Autonomous driving is another major trend in the automotive industry, and it is driving the need for more sophisticated semiconductors. Autonomous vehicles require a wide range of sensors and processing units to perceive and interpret the environment, make decisions, and control the vehicle's movements.
These sensors and processing units need to be highly reliable and efficient, and they require specialized semiconductors that can handle the high data processing requirements. As the development of autonomous driving technologies continues, the demand for these types of semiconductors is expected to increase.
Advanced Driver Assistance Systems (ADAS): The growing demand for advanced safety features, such as collision avoidance and driver assistance systems, is driving the need for more advanced semiconductors. ADAS systems rely on sensor fusion, data processing, and control systems to provide accurate and timely information to the driver, and these systems require specialized semiconductors that can handle high data processing requirements while also maintaining high reliability. As the demand for ADAS systems continues to grow, the demand for these types of semiconductors is expected to increase.
Connected Vehicles: The increasing demand for connected vehicles is another major trend in the automotive industry, and it is driving the need for more advanced semiconductors for communication and networking.
Connected vehicles require specialized semiconductors that can handle the high data transmission requirements for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. These semiconductors must also be highly reliable and secure to ensure the safety of the vehicle and its passengers. As the demand for connected vehicles continues to grow, the demand for these types of semiconductors is expected to increase.
Europe & North America Account for Major Market Shares
The consumption of automotive semiconductors in North America is expected to dominate the global automotive semiconductor market share. This trend is driven by government initiatives aimed at boosting the automotive manufacturing industry and the increasing adoption of IoT technologies in multiple vehicles.
The rapid integration of new technologies in the North American automotive industry is expected to continue driving sales of automobile computer chips through 2030, with Canada and the United States leading the way as the most significant markets in the region.
Meanwhile, the popularity of electric cars in Europe is anticipated to drive the demand for electric components, with the increasing use of semiconductor devices in automotive infotainment Socs systems also driving the demand for automotive semiconductors. Germany is expected to be a noteworthy market for automotive microcontroller manufacturers, due to the presence of key car manufacturing companies in the nation.
In East Asia, the increasing sales of cars owing to rising disposable income and evolving consumer preferences are expected to significantly impact the demand for automobile computer chips in the region through 2030.
Semiconductor manufacturers for cars in this region are anticipated to benefit from the rising demand for automotive safety systems such as ADAS, TPMS, ABS, etc., as well as the growing sales of luxury cars. China is expected to lead the sales of automotive semiconductors in this region, thanks to its robust automotive and semiconductor manufacturing industries.
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The United States is one of the largest markets for electric and autonomous vehicles, which require a wide range of advanced semiconductors. The demand for these vehicles is driving the need for more specialized and sophisticated semiconductors that can handle the unique requirements of electric and autonomous driving, and many of these semiconductors are being developed and produced in the United States.
The country also has a strong and mature automotive industry that has been a major driver of the country's economy for many years. The automotive industry is a major consumer of semiconductor technology, and the United States has a large and established base of automakers and suppliers that demand a wide range of semiconductors.
Presence of Robust Automotive Manufacturing Industry Driving Automotive Semiconductor Consumption
China is the leading automotive manufacturing country in the world, and this factor alone is projected to boost shipments of automotive semiconductors in the nation over the years to come. Supportive government initiatives to boost semiconductor manufacturing and the rising use of automobile computer chips are prominent factors that are expected to govern the sales of automotive semiconductors through 2033.
Semiconductor manufacturers for cars are expected to have highly lucrative opportunities carved out for them in China as sales of electric vehicles increase soon.
Dominant Market Share Held by Micro Components
The micro component segment is expected to be valued at 16974.2 million by the end of this year.
Rising use of micro components (processors) in several automotive systems such as ABS (anti-lock braking systems), TPMS (tire pressure monitoring systems), electronic stability control, etc., are expected to drive segment growth through 2030.
As such, the micro components segment is anticipated to hold a major market share over the coming years. Discrete semiconductor devices are also anticipated to see a rise in demand at a steady pace throughout the forecast period.
Automotive Semiconductor Sales High for Safety & Body Applications
The safety application segment is expected to be valued at USD 14322.4 million by the end of 2023. The outlook for safety applications in the global automotive semiconductor market is very promising. The demand for safety features in vehicles has been increasing rapidly in recent years, and this trend is expected to continue in the coming years. As a result, the demand for automotive semiconductors that enable these safety features is also expected to grow significantly.
One of the key drivers of this trend is the increasing focus on reducing accidents and improving road safety. Governments and regulatory bodies around the world are implementing stricter safety regulations, and automakers are responding by incorporating advanced safety features in their vehicles. These features include adaptive cruise control, lane departure warning, blind spot detection, and automatic emergency braking, among others, and they all require sophisticated semiconductor technologies to function effectively.
Another driver of the demand for automotive semiconductors for safety applications is the growing market for electric and autonomous vehicles. These vehicles rely heavily on advanced sensors and semiconductors to navigate the road and avoid accidents, and this is driving demand for semiconductors that enable features such as collision avoidance, pedestrian detection, and traffic sign recognition.
The automotive industry is currently experiencing a surge in demand for computer chips, and semiconductor suppliers are taking notice.These companies are investing heavily in expanding their production and manufacturing capabilities to keep up with this ever-growing demand.
But that's not all to leading semiconductor firms are also implementing various strategic initiatives to enhance their sales potential and market share on a global scale. The race is on to become the dominant player in this crucial segment of the automotive supply chain.
In September 2021, Infineon Technologies AG, a leading name in semiconductor manufacturing, announced the opening of its new chip factory for power electronics in Villach, Austria. The factory is one of the largest investments made by the company in Europe, with the site being constructed at a whopping cost of USD 1.67 Billion.
The projected revenue of the market by 2033 is USD 1,156,09.68 million.
The market CAGR for 2033 is projected to be 7%.
The market is valued at USD 58,770.1 million in 2023.
North America holds a substantial market share.
The automotive sector is a key source as modern cars use a lot of semiconductors.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Micro Components 5.2. Memory Devices 5.3. Optical & Sensors 5.4. Analog ICS 5.5. Discrete Devices 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Passenger Vehicles 6.2. Light Commercial Vehicles 6.3. Heavy Commercial Vehicles 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Safety 7.2. Telematics & Infotainment 7.3. Power Trains 7.4. Chassis 7.5. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Intel Corporation 16.2. Samsung Semiconductors 16.3. NXP Semiconductors 16.4. NVIDIA Corporation 16.5. Broadcom Inc. 16.6. Texas Instruments Inc. 16.7. Taiwan Semiconductor Manufacturing Co. Ltd. 16.8. Qualcomm Inc. 16.9. Micron Technology Inc. 16.10. ASE Technology Holding Co. Ltd. 17. Assumptions & Acronyms Used 18. Research Methodology
Technology
November 2022
REP-GB-271
250 pages
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Automotive Semiconductor Market
