Automotive semiconductor companies specialize in developing semiconductor solutions for vehicles. They create advanced chips and electronic components that power various systems in modern automobiles, enabling features like advanced driver assistance systems, infotainment, and engine control.
*Disclaimer: List of key companies in no particular order
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October 2023- A South Korean automotive semiconductor startup, BOS Semiconductors, on October 10th, disclosed that it is collaborating with an AI semiconductor company based in North America, Tenstorrent, to build automotive SoC (System-on-chip) semiconductors for automobile and automobile part manufacturers. As part of this agreement, BOS will permit Tenstorrent's AI Tensix core technology to integrate into BOS Semiconductors' range of automotive SoCs. Tensix cores are a vital part of Tenstorrent's proprietary AI accelerator chips that are enhanced for managing high-performance workloads mandatory for complicated aspects needed for future mobility. Combining BOS Semiconductors' expertise in automotive SoC design with Tenstorrent's next-generation AI technology will provide a solid foundation for securing a leadership position in the market that both companies can build upon together.
The CEO of Tenstorrent, Jim Keller, said that the automotive market is experiencing more technical encounters and inventions than ever before. He further added that Jaehong Park and BOS Semiconductors have an excellent sight for a range of SoCs based on their technology that will be perfect for meeting this moment. Jaehong Park, the BOS Semiconductors CEO, stated that with this partnership with Tenstorrent, the company anticipates building low-power and high-performance automotive SoC semiconductors, enhancing power efficiency, accuracy, and processing speed. This will allow the company to battle successfully in the automotive semiconductor market that is swiftly emerging around new technologies such as autonomous driving and connected vehicles.
Top listed global companies in the industry are:
Automotive Semiconductor Market Size was valued at USD 40,168.3 million in 2021. The Automotive Semiconductor industry is projected to grow from USD 43,662.9 Million in 2022 to USD 85,727.8 million by 2030, exhibiting a compound annual growth rate (CAGR) of 8.6% during the forecast period (2024 - 2030). Increasing trend of vehicle electrification and increase in safety features in vehicles are driving the market growth. Â
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In recent years, the cost of electric vehicles has been comparatively very high due to the high manufacturing costs. The growth of new start-ups in the electric vehicle segment brought new innovative ideas and technologies which helped in reducing the production cost of vehicle electrification. This resulted in consumers shifting focus to the electric vehicle segment. The rise of fuel prices has also escalated the speed of vehicle electrification. This is especially in cities where gas emissions, congestion, and mobility problems are raising the demand for a new feature in cars. The use of semiconductors has enabled replacing the manual system with an electric system. Electrification of vehicles offers additional benefits such as reduced carbon emission and increased fuel mileage. Furthermore, governments across the globe are promoting vehicle electrification to accelerate sustainable mobility growth. For instance, the European council’s Fit for 55 program aims to achieve climate neutrality by the end of 2050. The council aims to cut emissions by 55% by the end of 2030. The European government is implementing policies and mandates regarding the emission of CO2, and some countries in the region have plans to ban internal combustion engine vehicles from 2035. Similarly, other countries around the world are also encouraging the usage of electric vehicles, which has accelerated the growth of vehicle electrification. The growth trend of vehicle electrification has surged the demand for semiconductors as they are an important component in electric vehicles. On average, an EV requires 2,000 chips which are almost double the amount used in combustion cars.
In addition, increasing safety features in vehicles is another factor driving the growth of the Auto Semiconductor market revenue.
The Automotive Semiconductor Market segmentation, based on application, includes powertrain, safety, body electronics, chassis, and telematics and infotainment. The powertrain segment held the majority share in 2021 contribution to around ~25-30% in respect to the Auto Semiconductor Market revenue. This is primarily owing to the rising need of deploy powertrain control system in vehicles.
September 2021:Â Infineon Technologies expanded its presence in Austria by boosting the German semiconductor company's ability to supply power chips for cars, data centers, and renewable power generation.
March 2022:Â Renesas Electronics Corporation announced the expansion of its collaboration with Honda in advanced driver-assistance systems (ADAS). Honda adopted Renesas' R-Car automotive system on a chip (SoC) and RH850 automotive MCU for its Honda SENSING Elite system featured in the Legend
The Automotive Semiconductor Market segmentation, based on vehicle type, includes passenger vehicle, and commercial vehicle. The passenger vehicle segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. This is due to the rapid population growth, and urbanization. Hence, it positively impacts the market growth.
The Automotive Semiconductor Market segmentation, based on component, includes processor, analog ic, discrete power device, sensor, memory device, logic ic. The processor segment dominated the market in 2021 and is projected to be the faster growing segment during the forecast period, 2024-2030. This due to rising industrialization and growing investment in semiconductor. Hence, it positively impacts the market growth.
The Automotive Semiconductor Market data has been bifurcated by vehicle propulsion into ICE Vehicle and Electric Vehicle. The ICE Vehicle segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. The ICE vehicle segment held the majority share in 2021 contribution to around ~85-90% in respect to the Auto Semiconductor Market. Nothing like EVs, which takes hours to recharge, ICE vehicle can be refueled in minutes. Hence, due to ICE vehicle advantages implants for automotive industry positively impacts the market growth. Â
June 2021:Â STMicroelectronics collaborated with Eyeris, one leader in vision-based Artificial Intelligence (AI) software and in-cabin sensor fusion technologies. The collaboration focuses on extending ST's C- sensor to in-cabin sensing applications with Eyeris' advanced portfolio of Deep Neural Networks for a comprehensive visuospatial understanding of the entire vehicle interior. This approval has further broadened the growth opportunity for the Automotive Semiconductor industry.
Figure 1: Automotive Semiconductor Market, by Vehicle Propulsion, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America Automotive Semiconductor market accounted for USD 10,731.4 million in 2021 and is expected to exhibit an 7.6% CAGR during the study period. Â
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automotive Semiconductor market accounts for the second-largest market share due to the adoption of advanced technologies in automotive industry. Further, the Germany Auto Semiconductor market held the largest market share, and the UK Automotive Semiconductor market was the fastest growing market in the European region. In UK the automotive industry is essential to the economy. it accounts for 13% of the country's total exports of good, having around 180,000 people in manufacturing as well as around 864,000 across the wider automotive industry. Also, EU is an important destination for British cars. Furthermore, the UK and South Korea announced a deal for enhancing supply chains for ensuring the flow of critical goods with regard to chips which are used in advanced production in the auto industry. Belgium is advanced in adapting new technologies in large fleets, which results in establishing production facilities in the country. For instance, ON Semiconductor has increased the capacity at its production facility which manufactures high-voltage technologies for the industrial and automotive industries. In France, Wilov is a usage-based insurance provider which offers a 'badge' to the customer for tracking the miles driven. Furthermore, major players are adopting strategic initiatives which have boosted the market.
The Asia-Pacific Automotive Semiconductor Market is expected to grow at a CAGR of 9.6% from 2024 to 2030. This is due to increased sales of passenger vehicles in this region. Moreover, China Automotive Semiconductor market held the largest market share, and the India Automotive Semiconductor market was the fastest growing market in the Asia-Pacific region.
Furthermore, growth in the region is attributed to rising research and development expenditure as well as government initiatives. Also, countries such as South Korea, Taiwan, China, and Japan are big semiconductor players in the region. Moreover, the region has the presence of many several global tech giants. Additionally, according to Tech Wire Asia, Asia Pacific accounts for 60% market share.
China has strength in semiconductors. China's potential in IC (integrated circuit) design has surged in last 5 years. In the semiconductor industry, there has been increase in investment in areas that enable short term returns.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Semiconductor market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Semiconductor industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Automotive Semiconductor industry to benefit clients and expand the Auto Semiconductor market sector is to manufacture locally to reduce operating costs.
Infineon has established a stable foundation for success in its target market. Its strategy aims to strengthen the core business further and acquire new growth. The company's strategic approach of "Product to System" orients its complete value chain to the customers' success.
STMicroelectronics has adopted both organic and inorganic growth approaches. It has a wide range of semiconductor devices that help them develop industry-leading products and solutions that have applications in IoT, hybrid and electric vehicles, among others. It also follows a product differentiation strategy that helps boost its smart connected consumer devices to increase its customer base and expand its regional presence through strategic partnerships.
May 2021:Â Analog Devices expanded its portfolio of battery management system (BMS) products, including ASIL-D functional safety and innovative new low-power features to enable continuous battery monitoring.
September 2021:Â ROHM, and Geely Automobile Group Co., Ltd., a leading Chinese automobile manufacturer, have entered into a strategic partnership to develop advanced technologies in the automotive field. Geely is working to extend the cruising range of electric vehicles while reducing battery costs and shortening charge times by developing high-efficiency traction inverters and onboard charging systems that adopt ROHM's advanced power solutions centered on SiC power devices.
November 2021:Â Toshiba launched a high voltage transistor output automotive photocoupler, TLX9188, for isolated signal communication in automotive equipment, including electric mobility vehicles.
Automotive Semiconductor Market Highlights:
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