ID: MRFR/AM/6207-CR | October 2020 | Region: Global | 187 pages
Automotive Chip Market is projected to be worth USD 117.76 billion by 2028, registering a CAGR of 12.27% during the forecast period (2021 - 2028)., The market was valued at USD 33.17 billion in 2021.
The market is expected to observe a quick growth in the forecast period. The increase in the digitization and computerization of the parts of an automobile is assumed to fuel the growth of the automotive chip industry. Also, the adoption of Engine Control Unit (ECU) in modern vehicles will enhance the market growth.
Automotive chips are primarily used for monitoring and controlling the different functions in an automobile. They use various algorithms to solve the tasks. Hence, it can offer a smooth and easy driving experience to the drivers. Automotive car chip allows the driver to handle the navigation and infotainment systems with the help of their voices. It also provides various other details of the car through the sensors attached to the vehicles. It also protects the vehicles by switching on the anti-theft system. Automotive chips are also known as micro supercomputers. These are expected to become the standard features of various smart cars. The automotive chip market value is expected to reach 72,428.6 million by 2023 at a CAGR of 12.87%.
Due to the sudden outbreak of the COVID-19 pandemic, the automotive chip industry was largely affected. COVID-19 was expected to have a huge impact on the market, especially on the supply chain and the demand for a certain product in the automotive sector. The commercial vehicle demand is estimated to drop along with the stoppage of all non-essential services. The shortage of liquidity and the cash crunch have already affected the sales of various fleet operators. But this is expected to get in control in the next few months. The major cause affecting the supply chain of the market is the shortage of the automotive chip. It is expected that after the lockdown, things will get better and in turn, will change the automotive chip market outlook in a positive way.
According to the automotive chip market analysis, the companies that are responsible for the growth of the market are Infineon Technologies, ON Semiconductor, NXP Semiconductors, Toshiba Corporation, and so on. These companies hold around 50% of the global market.
Other companies like NVIDIA Corporation and AQUANTIA Corporation are primarily focusing on launching large processing power chips which will be used for full automatic vehicles. NVIDIA is currently developing a 100 to 1000 megabit-per-second chip. Broadcom and Marvell also joined the race of developing such chips. Here are some of the key companies that are immensely responsible for the growth of the market.
List of Companies
With the rise in the production of vehicles, the demand for passenger vehicles has also increased. This is one of the major factors that is driving the growth of the automotive chip market. The need for vehicle safety and demand for engine control unit (ECU) in vehicles have been rising day by day. With the increase in the sales of electric and hybrid cars, the application of automotive chips in these automobiles is also rising.
Due to the rise in the adoption of safety-related electronic systems and vehicles, automotive semiconductor vendors will earn a huge advantage by using the automotive chip in various cars. This will create an opportunity for the automotive chip market.
Just like any other electronic component, the automotive chip can also face defects or can fail. This can be a major reason to hold back the growth of the market. Due to excessive leakage of current, these chips can fail or face some huge defect leading to system failure. This can affect the automotive chip market globally.
Despite having so many driving factors that enhance the growth of the automotive chip market, there are a few challenges as well that the market may face in the forecast period. Due to the outbreak of the COVID-19 pandemic, the industries are facing a huge shortage of automotive chips. For this reason, the price of automotive chip-based products or vehicles is going to increase along with its demand. This is a major challenge that the automotive chip industries are currently facing.
The automotive chip market growth is estimated to grow from USD 35,292.5 million to USD 72,428.6 million in the forecast period at a CAGR of 12.87%. Automotive chip plays an important role in technologies. Thus, their sale is also increasing day by day. The growing adoption of automotive chip based technologies will enhance in the upcoming years due to the advent of new technologies.
Owing to the increase in the sales of ultra-luxury cars, the logic ICs segment is estimated to reach a high value during the forecast period. The automotive chips are designed in such a way that it allows the drivers to handle the navigation system and the infotainment system by using their voice only. They are also made to intensify mobility and connectivity. In addition to this, it also offers detailed information regarding battery level, maintenance level, gas level, and many other features which can be attained with the help of sensors present in the vehicle. The analog ICs is estimated to lead the market during the forecast period. This will also increase the automotive chip market revenue in the upcoming years.
The automotive chip market size is segmented into four categories. They are by propulsion, by application, by product type, and by vehicle type. Here is a list of the segments along with their sub-segments.
On the basis of region, the automotive chip market share is segmented into various parts such as Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. Among these regions, the Asia Pacific region is expected to show the highest growth rate in the automotive chip industry during the forecast period. The Asia Pacific is expected to reach a valuation of 26.05 billion during the forecast period. In 2017, the market share of China was valued at USD 9,659.5 million. Hence, it was considered the largest market. The regions of Asia Pacific include India, China, and Japan. These places are specially helping in the growth of the market due to its increasing demand for automotive semiconductor devices.
This automotive chip market research report delivers a quantitative and qualitative analysis of the industry by examining the growth of the market along with the automotive chip market trends, challenges, drivers, restraints, and opportunities. This report also provides detailed knowledge about the recent developments that are constantly happening in the market and thus considered to be one of the major factors responsible for the automotive chip market growth. The research report also outlines the competitive landscape, COVID-19 impact on the market, regional analysis, and the segmentation of the market based on various factors like vehicle type, product type, propulsion, and application.
|Market Size||2028: USD 117.76 billion|
|CAGR||12.27% CAGR (2021-2028)|
|Historical Data||Value (USD Million)|
|Forecast Units||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Application, Vehicle Type, Propulsion|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||STMicroelectronics (Switzerland), Infineon Technologies (Germany), Toshiba Corporation (Japan), ON Semiconductor (US), Renesas Electronics (Japan), Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (US), ROHM Semiconductor (Japan), Denso Corporation (Japan)|
|Key Market Opportunities||Rise in the adoption of safety-related electronic systems and vehicles, automotive semiconductor vendors will earn a huge advantage by using the automotive chip in various cars|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The market’s CAGR is recorded for 12.87%.
The market will be valuing at USD 117.76 billion by 2028.
North America, Europe, Asia-Pacific, and the rest of the world are the key regions of the market.
ON Semiconductor (US), Infineon Technologies AG (Germany), Robert Bosch GmbH (Germany), STMicroelectronics (Switzerland) are the key players of the market.