ID: MRFR/AM/8964-HCR | March 2021 | Region: Global | 100 pages
Semiconductors enable most of the innovations in automotive development as the modern car contains features like cell phone integration, heads-up displays, autonomous driving aids, comfort, and performance which needs the aid of the semiconductor. As cars become even more complex, demand for automotive semiconductors will increase progressively and provide a powerful long-term growth engine for the automotive sector.
Automotive semiconductor ICs with different functionalities are used in various automotive products, like navigation control, infotainment systems, and collision detection systems. The electrification and automation of automobiles have led to increased demand in semiconductor wafers. The continuous innovations in the field of semiconductors for wide variety of applications in passenger cars, lightweight commercial vehicle (LCV), heavyweight commercial vehicle (HCV) is attracting several automakers globally, which is paving the path for automotive semiconductors market in the current scenario.
Owing to rising demand for safety features designed to avoid collisions and accidents by offered technologies that alert the driver to potential problems and to avoid collisions by implementing safeguards and taking over control of the vehicle, ADAS (Advanced Driver Assistance Systems) sales are expected to flourish in the future. Semiconductors find their application in ADAS to enhance its functionality. Moreover, higher volumes of data are driving the adoption of 64-bit processors for automotive ADAS applications. The shift from a distributed architecture to a more centralized ECU is more prevalent. Since the ECUs are integrated, the ADAS SoCs (System on Chips) is becoming very complicated, thereby requiring the innovative semiconductor features and semiconductor process technologies.
Moreover, the growth in the automotive industry, coupled with the developing features in the luxury sector, has led to a rise in the number of sensors being integrated into the automobiles to provide more advanced services to the consumers and thus now the companies need to comply with the safety regulations even more as compared to earlier. The most significant and conventional applications are power train and HVAC systems, followed by body electronics and alternative fuel. Increasing demand from customers for automatic control of operations and information regarding a vehicle's status has led to increased emphasis on maintaining safety. Similarly, government support for the utilization of alternative fuels has led to an increase in the demand for the automotive semiconductor market in the forecasted period.
In April 2020, NXP Semiconductors announced the availability of a comprehensive Wi-Fi 6 portfolio, which significantly expands the number of products and markets able to adopt the latest Wi-Fi standards. NXP’s expanded Wi-Fi 6 portfolio represents the company’s new end-to-end vision and differentiated technology approach that is designed to help usher in an era of connectivity innovation for automotive, access, mobile and Industrial and IoT markets. Moreover, in March 2020, STMicroelectronics launched its first STM32L5 microcontroller with ultra-low power consumption and data security for IoT. The STM32L5 series MCU has a clock frequency of up to 110MHz and is based on the Arm Cortex-M33 32-bit RISC processor core with built-in Arm Trust Zone hardware security technology.
Global Automotive Semiconductor Market has been segmented By Component, Application, Vehicle Type, and Region. Based on Component, the global Automotive Semiconductor market can be bifurcated into Processors, Sensors, Memory Devices, Integrated Circuits, Discrete Power Devices, and Others. The Integrated Circuits segment is anticipated to grow at a significant CAGR in the coming years. By Application, the Automotive Semiconductor market has been split into Chassis, Power Electronics, Safety, Body Electronics, Comfort/Entertainment Unit, and Others. The Power Electronics segment held a sizeable share and is anticipated to grow at a significant CAGR in the coming years. By Vehicle Type, the Automotive Semiconductor market has been split into passenger cars, LCV, and HCV. The passenger cars segment held a sizeable share and is anticipated to grow at a significant CAGR in the coming years.
Global Automotive Semiconductor Market size is anticipated to register a significant CAGR of 7% between 2020 and 2026.
Global Automotive Semiconductor Market is expected to witness moderate growth during the forecast period owing to the rising demand for safety features and rise in the number of sensors being integrated into the automobiles. These factors are expected to drive the demand for Automotive Semiconductor in the coming years.
Based on region, the global Automotive Semiconductor market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. Faster GDP growth and the highly aspirational Asian consumers have been the two main growth drivers for most of the emerging markets, including China, India, Malaysia, and the other developing markets in Southeast Asia. In China, for example, a rising middle class is expected to continue driving the steady growth of the Chinese auto market, with the market for new purchases and replacement of vehicles increasing. These factors are spurring the demand for automobiles in the region, consequently driving the market for automotive semiconductors.
Due to trade war among the USA and China, the US government is planning to increase tariffs up to 25% on vehicles and car parts imported from China. China is the second biggest exporter of components to the United States, after Mexico. The United States is one of the largest auto markets in the world, and such tariffs will likely affect the automotive sector. As per the World Trade Organization, the conflict between these countries will directly affect 3% of the global trade and 8% of the automotive industry. Such situations are expected to have an impact on the automotive semiconductor market in the region.
Key Players in the Global Automotive Semiconductor Market are NXP Semiconductor NV, Infineon Technologies AG, Renesas Electronics Corporation, STMicroelectronics N.V., Toshiba Corporation, Texas Instrument Inc., Robert Bosch GmbH, Micron Technology, ON Semiconductor Corporation, and Analog Devices Inc.
|Market Size||2027: Significant Value|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Application, Vehicle Type, Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||NXP Semiconductor NV, Infineon Technologies AG, Renesas Electronics Corporation, STMicroelectronics N.V., Toshiba Corporation, Texas Instrument Inc., Robert Bosch GmbH, Micron Technology, ON Semiconductor Corporation, and Analog Devices Inc|
|Key Market Opportunities||
|Key Market Drivers||