The automotivesemiconductor market size is poised for substantial growth, with the latestreport 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.
Drivers
One of the primary drivers propelling this growth isthe 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 thevalue 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.
Key Players:
Prominent companies featured in the global automotivesemiconductor 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 rolein driving innovation and growth within the automotive semiconductor market.
Opportunities
PoliciesImposing Perilous Safety Arrangements in Cars to offer Lucrative
Opportunities
Various policies imposinggreater 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
RisingCost of Overall Vehicle to act as Market Restraint
The rising cost of overallvehicle and maintenance between quality and cost of product may act as market
restraint over the forecast period.
Challenges
ConstantOptimization to act as Market Challenge
The continuousoptimization 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-19outbreak, 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.
MarketSegmentation
· The global automotivesemiconductor market is segmented based on vehicle type, application, and component.
· By component, the integratedcircuits segment will lead the market over the forecast period at a high CAGR.
· By application, the powerelectronics segment will dominate the market over the forecast period and at a
significant CAGR.
By vehicle type, passengercars 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.
RegionalAnalysis
APAC toSteer Automotive Semiconductor Market
The APAC region will steerthe 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 automotivesemiconductor across the globe, increasing growthof 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 experiencesignificant development within the automotivesemiconductor market during the forecast period. Several key factors aredriving 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, theNational 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.
