East Asia automotive semiconductors industry generated a total revenue of USD 9,467.1 million in 2023. The market is expected to rise at a fast pace at 12.1% CAGR. It is predicted to cross a valuation of around USD 26,742.4 million by 2033.
Automotive semiconductors are key electronic components used in cars and trucks across East Asia. These semiconductors are utilized to control, regulate, and protect electrical systems in vehicles.
These also enable vehicles to operate efficiently and safely. A few examples of commonly used automotive semiconductors in East Asia include microcontrollers, power transistors, integrated circuits, memory chips, and sensors. The industry constitutes a share of 42% in the automotive electronics market in East Asia.
As they are the main mode of transportation in today's society, automobiles are an integral part of people's lives. Worldwide, there are already more than 1.3 billion motor vehicles on the road. By 2035, that number is expected to increase to 1.8 billion.
Around 74% of these numbers are attributed to passenger cars. The remaining 26% are being attributed to light commercial vehicles such as minibuses, coaches, and big trucks.
As per Statistics Japan, in Japan, there are about 68,900,000 registered cars, which is almost equal to the number of bicycles. In Nagano, where 75 vehicles are registered for every 100 people, or 75% of the population, this ratio is prominent. Gunma, Yamanashi, Ibaraki, and Tochigi are ranked highly after Nagano, with regions in the north Kanto area and Koshinetsu region following.
From adaptive cruise control systems to vehicle headrests, the technology in automobile safety and security systems have experienced a substantial transformation recently. Cutting-edge technologies, including night vision systems, blind-spot detection, head-up displays, and sleepiness monitoring systems are set to gain traction.
Tire-pressure monitoring systems, lane departure warning systems, e-call telematics, and parking assist are also likely to surge the need for safety and security systems. These would help to shield the driver and passengers from severe injuries in the event of a car accident.
| Attributes | Key Insights |
|---|---|
| East Asia Automotive Semiconductors Market Estimated Size (2023E) | USD 9,467.1 million |
| Projected Market Valuation (2033F) | USD 26,742.4 million |
| Value-based CAGR (2023 to 2033) | 12.1% |
| Collective Value Share: Top 5 Vendors | 30.5% |
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East Asia automotive semiconductors industry exhibited a CAGR of 11.0% between 2018 to 2022. The market is anticipated to expand at a CAGR of 12.1% from 2023 to 2033.
The market for automotive semiconductors in East Asia is expected to surge in the forecast period. It is due to increasing demand for advanced driver assistance systems (ADAS), autonomous driving, and connected car technologies.
High demand for advanced safety features and growing need for electric vehicles are further expected to propel the region’s automotive semiconductor industry. Rising demand for infotainment systems such as navigation systems, audio systems, and smartphone integration, is also likely to push the East Asia market.
Increasing demand for powertrain components such as electric motors, electric power steering, and electric brakes, is another crucial driving factor. Modern informational media, security, capability, and energy efficiency are available in various cost-effective vehicles. Such characteristics often result in the addition of numerous components, which raises the cost of the vehicle as a whole.
At the heart of today's cars are thousands of semiconductor chips that serve as the brain, eyes, and ears of the car. They also help in analyzing the surroundings, making decisions, and controlling actions.
Vehicles are nowadays equipped with 8,000 or even more semiconductor chips, along with over 100 electronic control units. The Semiconductor Industry Association reports that these components currently account for over 35% of the total cost of a vehicle, and this proportion is projected to increase to 50% between 2025 and 2030.
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Automotive Semiconductor Suppliers in China to Focus on Attracting Foreign Investments
China has a key East Asia automotive semiconductors industry share. It is due to the country’s large population, strong manufacturing capabilities, and growing demand for automotive electronics.
China has made significant investments in the development of semiconductor technology. It has allowed the country to become a leading supplier for the global automotive industry.
The country’s automotive industry is one of the most prominent in the world. Its semiconductor market has benefited from China’s large-scale domestic market.
China has been able to attract foreign investments in its automotive semiconductor industry. It is due to the country’s favorable business environment and low labor costs. The factors are projected to help China to generate a market share of 39.5% in 2023.
Automotive Semiconductor Supply to Expand in Japan with Presence of Reputed Automakers
Japan is expected to elevate in the East Asia automotive semiconductors market through 2033. It is due to the country’s strong presence in the automotive industry.
Japan is home to several of the world's leading automotive manufacturers, including Toyota, Honda, Nissan, and Mitsubishi. These companies are increasingly investing in advanced automotive technologies such as semiconductors.
Japan also has a strong semiconductor industry. It is home to various renowned semiconductor manufacturers such as Renesas, Toshiba, and Fujitsu.
These companies are well-positioned to capitalize on the growing demand for automotive semiconductors. They have the expertise and resources to develop & manufacture semiconductor components for the automotive industry. Japan is hence projected to showcase a CAGR of 14.0% during the estimated period.
Robust Research & Development Programs in South Korea to Push Sales of Automotive Power Semiconductors
South Korea is expected to flourish in the East Asia automotive semiconductors market in the next ten years. It is due to the country’s strong presence in the semiconductor industry and increasing demand for automotive semiconductors in the country.
South Korea is one of the leading countries in the semiconductor industry. It is also home to several reputed semiconductor manufacturers and suppliers.
The country has seen an increasing number of automotive semiconductor applications such as autonomous driving, advanced driver assistance systems, and connected vehicles. South Korea also has a strong research and development infrastructure. It has enabled the country to develop innovative automotive semiconductor solutions.
The government of South Korea has been actively promoting the automotive semiconductor industry. It is set to provide incentives and tax breaks to semiconductor manufacturers and suppliers. South Korea is hence projected to exhibit a CAGR of 9.6% in the assessment period.
High Demand for Infotainment Systems to Propel Sales of Automotive Semiconductor Processors
Increasing demand for processors in the East Asia automotive semiconductor industry is driven by a few key factors. The first is increasing demand for autonomous and connected vehicles.
These vehicles require more processing power to manage the increased data processing needs. Development of advanced driver assistance systems (ADAS) and increasing trend for vehicle electrification are also set to fuel the need for more powerful processors.
Increasing demand for infotainment systems such as in-vehicle entertainment, navigation, and communication, is projected to propel demand for processors in the East Asia automotive semiconductor industry. The processor segment had generated a market share of 30.3% in 2022.
Fuel-based Vehicles to Implement Automotive Chips across East Asia
Increasing need for fuel efficiency, emission reduction, and cost savings is set to augment demand for fuel-based vehicle implementations. Automotive semiconductor manufacturers are working to develop new technologies that can reduce emissions and improve fuel economy. It includes the development of fuel-based technologies such as direct injection systems, advanced combustion strategies, and fuel injection systems.
These technologies can help automakers to reduce emissions, improve fuel economy, and lower costs. Increasing demand for connected and autonomous vehicles is also driving demand for fuel-based vehicle implementations.
Connected and autonomous vehicles require sophisticated electronic components and systems. These require fuel-based implementations in order to provide the necessary power and performance.
It also needs to be noted that the market for automotive vehicles in East Asia is dominated by fuel-based vehicles. A considerable amount of time is projected to be needed for the electric vehicle market to expand and reach the same level of fuel-based vehicles. These factors are expected to push the segment to hold a market share of 72.6% in 2023.
Automotive Chip Suppliers to Experience High Demand from Powertrain Applications
Growth in the East Asia automotive semiconductors market is being driven by increasing demand for powertrain applications. Demand is mainly propelled by increasing number of vehicles on the road.
Rising complexity of powertrain systems and need for greater efficiency & performance are also projected to accelerate sales. Growing demand for fuel efficiency, reduced emissions, and improved safety are further set to escalate the need for powertrain applications in automotive semiconductors.
Development of autonomous driving and connected cars is also expected to push the demand for advanced powertrain solutions. A few of these include electric vehicles, hybrid vehicles, and advanced driver assistance systems. The segment hence generated a market share of 11.3% in 2022.
Automotive Manufacturers to Extensively Utilize Semiconductor Car Chips in East Asia
Automotive manufacturers or original equipment manufacturers (OEMs) currently hold a considerable share of 11.4% in terms of end user. They are responsible for the designing, development, and production of vehicles & their components.
They are the ones that incorporate semiconductors into their vehicles, which make them the most prominent consumers of semiconductor components. They also have resources to invest in the development of new technologies. They are likely to keep up with the latest advances in the industry across East Asia.
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The East Asia automotive semiconductors market is highly competitive and fragmented with the presence of several large & small players. These players are increasingly investing in research & development activities to develop innovative products and strengthen their market position.
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| Attribute | Detail |
|---|---|
| Estimated Market Size (2023) | USD 9,467.1 million |
| Projected Market Valuation (2033) | USD 26,742.4 million |
| Value-based CAGR (2023 to 2033) | 12.1% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (USD million) |
| Key Countries Covered | China, Japan, and South Korea |
| Key Segments Covered | Product, Vehicle Type, Application, End User, and Country |
| Key Companies Profiled | Infineon Technologies; Robert Bosch Gmbh; NXP Semiconductor; Analog Device; Toshiba Corporation; STMicroelectronics; Renesas Electronics Corporation; Trimble Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is forecast to register a CAGR of 16% through 2033.
The growth potential of the market is 12.1% through 2033.
The high cost of equipment is likely to limit market growth.
The United States is likely to capture a share of 39.5% by 2033.
The market in the United Kingdom is likely to capture a CAGR of 14% by 2033.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Pricing Analysis 5. Market Demand (Value in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market Background 7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product 7.1. Processors 7.2. Sensors 7.3. Integrated Circuits 7.4. Discrete Devices 7.5. Memory Units 7.6. Others 8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 8.1. Fuel Based Vehicles 8.1.1. Passenger Cars 8.1.2. Commercial Vehicles 8.2. Electric/Hybrid Vehicles 8.2.1. Passenger Cars 8.2.2. Commercial Vehicles 9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 9.1. Powertrain 9.2. Safety and Control 9.3. Vehicle Body Electronics 9.4. Chassis 9.5. Telematics and Infotainment 9.6. Others 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 10.1. Automotive Manufacturers/OEM 10.2. Automotive Aftermarket Vendors 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Country 11.1. China 11.2. Japan 11.3. South Korea 12. Key Countries Analysis - Automotive Semiconductors Market 13. Market Structure Analysis 14. Competition Analysis 14.1. Infineon Technologies AG 14.2. NXP Semiconductors 14.3. STMicroelectronics 14.4. Robert Bosch GmbH 14.5. Texas Instruments Inc. 14.6. Renesas Electronics Corp. 14.7. Taiwan Semiconductors Co. Ltd 14.8. Analog Devices 14.9. On Semiconductors 14.10. Toshiba Corporation 14.11. ROHM Co. Ltd 14.12. Fuji Electric 14.13. Diodes Incorporated 14.14. Vishay Intertechnology 15. Assumptions and Acronyms Used 16. Research Methodology
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East Asia Automotive Semiconductors Market
