The global automotive semiconductor market size was estimated at USD 43.6 billion in 2021 and is expected to hit over USD 115.78 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 11.5% from 2022 to 2030.
The semiconductors are a sort of electrical component with the ability to conduct electricity under particular conditions. The semiconductors are employed in vehicles to ensure that the connected component performs well under all circumstances. The primary components of semiconductors used in automobiles are germanium and silicon, which are required for the proper operation of automotive electronics. The semiconductors in vehicles assist in a variety of functions, including managing the vehicle’s air conditioning system and assuring the vehicle’s safety.
The semiconductors enable the majority of automotive advancements, modern automobiles include features such as mobile phone integration, heads-up displays, autonomous driving aids, comfort and performance, all of which require semiconductor assistance. Furthermore, advancements in vehicle-based technology, such as the introduction of advanced driver assistance systems, infotainment, and telematics, as well as a greater willingness to adopt electric vehicles, all contribute to the global growth of the automotive semiconductor industry.
Scope of the Automotive Semiconductor Market
|Market Size||US$ 115.78 Billion by 2030|
|Growth Rate||CAGR of 11.5% from 2022 to 2030|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Segments Covered||Component, Vehicle Type, Application, Region
|Companies Mentioned||Robert Bosch GmbH, NXP Semiconductors N.V., Texas Instruments Inc., Analog Devices Inc., ON Semiconductor Corporation, Renesas Electronics Corporation, Infineon Technologies AG, STMicroelectronics N.V., ROHM Co. Ltd, Toshiba Corporation|
With the introduction of numerous technologies in the industry, such as 3-dimensional mapping applications, the arrival of electric vehicles, automobile automation, and many others, the automobile industry has changed significantly in the last few years. This has boosted demand for advanced semiconductors including memory devices, sensors, integrated circuits, and among other things.
The rapid advancements in the automotive sector, rising demand for safety features in automobiles, and the implementation of innovative technologies for advanced user interface fuel the automotive semiconductor market’s global expansion. Furthermore, factors like as operational failures in extreme climatic conditions, a complex structure, and high costs acts as barriers to the automotive semiconductor market’s global growth during the forecast period.
However, factors such as rising demand for electric and hybrid vehicles, as well as increased technological improvement and innovation in advanced driver assistance systems, would provide sufficient potential for the automotive semiconductor market expansion throughout the forecast period.
Furthermore, for consumers used to great user experiences, connected vehicles are essential drivers. As a result of these expectations, infotainment systems have evolved from networked, upgradeable, and integrated platforms, requiring the latest technological semiconductors in the market. As a result, the automotive semiconductor market is expected to benefit from the future of linked and autonomous vehicles.
The expansion of the automotive semiconductor market is strongly connected to the growth of the automobile sector. The most important element driving the automotive semiconductor market is the rising demand for automotive semiconductors, which is fueled by increased automobile manufacturing. Other factors driving the growth of the semiconductor content in automobiles include the expanding trend of vehicle electrification and the growing need for sophisticated convenience, safety, and comfort systems.
Thus, in the projected period, key factors such as rising vehicle production, the rising trend of vehicle electrification, and rising demand for advanced comfort, safety, and convenience systems are expected to propel the global automotive semiconductor market. The rise in overall vehicle costs, on the other hand, could be a significant impediment to the automotive semiconductor market’s growth in the upcoming years.
The discrete power segment dominated the automotive semiconductor market in 2020. The automotive sector has a high need for semiconductors across all component types. These components aid in the networking, electrification, and sharing of mobility services of vehicles.
The memory segment is fastest growing segment of the automotive semiconductor market in 2020. This is attributed to the continuing electrification of major automotive applications such as the powertrain, which is driving up demand for power components.
Vehicle Type Insights
The passenger vehicles segment dominated the automotive semiconductor market in 2020. The strong demand for passenger automobiles around the world is responsible for the growth of the segment.
The light commercial vehicle segment is fastest growing segment of the automotive semiconductor market in 2020. The growth of light commercial vehicles is likely to be fueled by rapid urbanization, improvements in road infrastructure, regulatory frameworks for purchasing commercial vehicles, and the expansion of e-commerce channels.
In 2020, the safety segment dominated the automotive semiconductor market. More demand for semiconductor components in safety applications is being driven by stringent regulations and standards.
The telematics & infotainment segment, on the other hand, is predicted to develop at the quickest rate in the future years. The automobile manufacturers are increasingly using semiconductor components for telematics and infotainment applications as a result of increasing competition among vehicle manufacturers to deliver improved convenience and comfort to their customers.
Europe dominated the automotive semiconductor market in 2020. The automobile manufacturers are constantly focused on creating, innovating, and developing autonomous vehicles, which have attracted a sizable percentage of buyers in key automotive manufacturing countries.
Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. Due to the expansion of the automotive sector, particularly in emerging economies, the region is expected to be the fastest growing market over the projected period. Furthermore, the booming e-commerce business is expected to boost demand for commercial vehicles in the future years.
The top players’ effective business strategies are included in this study of the automotive semiconductor market. To compete in the automotive semiconductor market, vendors are employing growth methods such as promoting their product offers through a clear and unique value proposition.
Some of the prominent players in the global automotive semiconductor market include:
Segments Covered in the Report
By Vehicle Type
By Fuel Type
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