The automotive semiconductor market size is projected to reach US$ 90.51 billion by 2031 from US$ 45.31 billion in 2023. The market is expected to register a CAGR of 9% in 2023–2031 Rising penetration of electronic components in luxury to mass-produced cars, rising acceptance of electronic control units (ECUs) in modern vehicles, and growing emphasis on safety systems
Automotive Semiconductor Market Analysis
The growing demand for electric and hybrid vehicles creates a tremendous opportunity for the automotive semiconductor business. These vehicles necessitate semiconductors for devices such as ADAS and ECUs that regulate the battery, motor, and other components. This results in a demand for complex and specialized semiconductors in the automotive semiconductor market. These market developments are expected to have an impact on the supply chain, aftermarket, and semiconductor component manufacturers. As a result, onboard diagnostic systems may replace conventional diagnostic systems, allowing for continuous monitoring of a vehicle's mechanical and electrical components.
Automotive Semiconductor Market Overview
The market is predicted to increase steadily over the next few years due to the rising use of electronic components in luxury to mass-produced cars, growing acceptance of electronic control units (ECUs) in modern vehicles, and a growing focus on vehicle safety systems. Other factors driving market expansion include the proliferation of linked cars, entertainment systems, automotive safety systems, and fuel efficiency rules. A rising number of cheap vehicles offer improved infotainment, safety, performance, and fuel efficiency. Such features result in the incorporation of many components, which raises the entire vehicle's price. Thousands of semiconductor chips are now at the heart of automobiles, serving as the vehicle's eyes, hearing, and brain, monitoring the environment, making decisions, and controlling actions.
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Automotive Semiconductor Market: Strategic Insights
Market Size Value in US$ 34.89 billion in 2017 Market Size Value by US$ 76.93 billion by 2027 Growth rate CAGR of 8.3% from 2018 to 2027 Forecast Period 2018-2027 Base Year 2018
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Automotive Semiconductor Market: Strategic Insights
| Market Size Value in | US$ 34.89 billion in 2017 |
| Market Size Value by | US$ 76.93 billion by 2027 |
| Growth rate | CAGR of 8.3% from 2018 to 2027 |
| Forecast Period | 2018-2027 |
| Base Year | 2018 |
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Automotive Semiconductor Market Drivers and Opportunities
Growing Shift Towards Using Electric and Hybrid Vehicles to Cut Pollutants to Favor Market
Electric and hybrid vehicles, as well as solar-powered automobiles, are the principal alternatives to petroleum-based engines. Using electric and hybrid vehicles can reduce fuel costs, reduce greenhouse gas emissions, enhance urban air quality, and lessen reliance on fossil fuels. The introduction of electric vehicles will increase demand for new automotive ICs, microprocessors, and sensors.
Growing Environmental Concerns Are Driving the Development of Electric Automobiles
Environmental concerns and the need to preserve energy have fueled the development of HEVs and EVs. Hybrid vehicles are equipped with an engine, a motor, and a high-voltage, high-power battery to operate the motor. Hybrid vehicles meet high power needs while still providing environmental benefits. Global emission standards have led to developments in car technology to reduce dangerous exhaust emissions. The introduction of electric vehicles (EVs) is a significant step towards environmental sustainability in the automobile sector. These vehicles use no conventional gasoline and thus emit no hazardous gasses. Electric car sales have increased significantly in industrialized nations such as North America and Europe due to various factors. Because these vehicles are entirely powered by electricity, they make extensive use of technological gadgets.
Automotive Semiconductor Market Report Segmentation Analysis
Key segments that contributed to the derivation of the automotive semiconductor market analysis are component, application, and vehicle type.
- Based on components, the automotive semiconductor market is segmented into optical, sensors & actuators, memory, microcontrollers, analog ICs, logic, and discrete power devices.
- By application, the market is segmented into advanced driver assistance systems, body electronics, infotainment, powertrain, and safety systems.
- In terms of vehicle type, the market is segmented into passenger, LCV, and HCV.
Automotive Semiconductor Market Share Analysis by Geography
The geographic scope of the automotive semiconductor market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The fundamental cause for APAC automotive semiconductor market growing is the expanding Chinese car industry. As the world's largest vehicle producer, this industry also consumes the most automotive semiconductors globally. The region is known for small and affordable cars. The region has experienced higher growth in the past decade than mature markets in Europe and North America due to factors such as low production costs, easy availability of labor, lenient emission and safety norms, and government initiatives encouraging foreign direct investment (FDI). APAC is a suitable site for vehicle production due to its growing population, rising economies (both developed and developing), and government measures promoting industrial expansion.
Automotive Semiconductor Market Report Scope
Automotive Semiconductor Market News and Recent Developments
The automotive semiconductor market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- In May 2022, Continental AG expanded its sensor offering for electrified vehicles in May 2022, introducing the Current Sensor Module (CSM) and Battery Impact Detection (BID) systems. Both new solutions aim to protect and retain battery parameters.
(Source: Continental, Company Website, 2021)
- In October 2021, Infineon Technologies offered the SL137 automotive security controller, a dependable trust anchor for securing safety-critical automotive applications like 5G eCall, V2X communication, car access, and SOTA software updates.
(Source: Infineon Technologies, Company Website, 2021)
Automotive Semiconductor Market Report Coverage and Deliverables
The "Automotive Semiconductor Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component ; Application ; Vehicle Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
The global automotive semiconductor market was estimated to be US$ 45.31 billion in 2023 and is expected to grow at a CAGR of 9 % during the forecast period 2023 - 2031.
The growing shift towards using electric and hybrid vehicles to cut pollutants is the major factors that propel the global automotive semiconductor market.
Increasing demand for fully automated cars to play a significant role in the global automotive semiconductor market in the coming years.
The key players holding the majority of shares in the global automotive semiconductor market are Analog Devices, Inc., Infineon Technologies AG, NXP Semiconductors, Renesas Electronics Corporation, and Robert Bosch GmbH.
The global automotive semiconductor market is expected to reach US$ 90.51 billion by 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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