USD 43.26 billion
Automotive Semiconductor Market Size, Share, Growth Analysis, By Component(Processor, Discrete Power, Sensor, Memory, Analog IC, Others), Vehicle Type(Passenger Vehicle, LCV, HCV), Fuel Type(Gasoline, Diesel, EV (HEV, PHEV, BEV)), Application, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG45I2174 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
162
|Figures:
77
Automotive Semiconductor Market Insights
Global Automotive Semiconductor Market size was valued at USD 43.26 billion in 2022 and is poised to grow from USD 46.8 billion in 2023 to USD 87.2 billion by 2031, growing at a CAGR of 8.1% in the forecast period (2024-2031).
In recent years, the global automotive semiconductor market has been changing consumer preferences and demands by technological advancements and the evolution of the automotive industry. A surge in electric vehicles (EVs), autonomous driving features, and connectivity solutions is fueling the demand for advanced semiconductor technologies. The integration of complex systems, such as advanced driver assistance systems (ADAS) and infotainment, is pushing semiconductors innovation. Based on SkyQuest analysis, according to the Chips Act, the automotive sector is receiving government support to surge the electrification of autonomous vehicles by using semiconductors. Additionally, the industry is witnessing a shift towards more efficient and specialized semiconductors for specific automotive applications. The initiatives made by the government are contributing to the expansion of the market.
Based on SkyQuest analysis, U.S government granted about US$ 120 million to Polaris semiconductor to expand the plant in Minnesota to double its US product capacity in of sensor and power chips within a period of two years. The grant was made by the department of commerce. For semiconductor manufacturing and research subsidy program Biden’s administration provided about USD 52.7 billion, followed by an agreement by Polar’s owner to sell stakes to the US based firms to become majorly US owned.
Based on SkyQuest analysis, Intel won about USD 8.5 billion grant by US government as well as Taiwan’s TSMC confirmed about USD 6.6 billion to build out the American production. Commerce department is planning to award memory chip maker Micron Technology about USD 6.1 million to help in the domestic chip factory projects.
The global shortage of semiconductor chips has, however, posed challenges, impacting production capacities for automotive manufacturers. Despite challenges, the market's future is promising, driven by the continuous development of smart and connected vehicles.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Passenger Vehicle
Fastest Growth
Light Commercial Vehicle (LCV)
Growth Rate
8.1% CAGR
Global Automotive Semiconductor Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Automotive Semiconductor Market Segmental Analysis
The global automotive semiconductor market is segmented based on component, vehicle Type, fuel type, application, and region. Based on components, the market is segmented into processor (microprocessor unit, microcontroller unit, digital signal processor, graphic processing unit), discrete power (small signal transistor, power transitor, thyristor, rectifier and diode), sensor (image sensor {complementary metal oxide semiconductor[CMOS] image sensor, charged couple device[CCD]}, pressure sensor, inertial sensor { accelerometer, gyroscope}, temperature sensor, radar), memory (memory modules {dynamic RAM, static RAM}), analog IC (amplifier, interface, convertor, comparator, asic and assp, logic ic, and infotainment system, telematics solution & connectivity device), lighting device, and others. Based on vehicle type, the market is segmented into passenger vehicle, light commercial vehicle (LCV), heavy commercial (HCV). Based on fuel type, the market is segmented into gasoline, diesel, EV (hybrid electric vehicle {HEV}, plug in hybrid electric vehicle {PHEV} battery electric vehicle {BEV}). Based on application, the market is segregated into chassis (brakes, steering, traction control, suspension, and vehicle dynamic management), powertrain (engine control, EV motor, and transmission), safety (airbags, electronic stability control, adaptive cruise control, night vision, TPMS, and parking assistance), telematics & infotainment ( dashboard, navigation system, connectivity devices, and audio video systems), body electronics (body control modules, SETA, doors, mirror and window control, and HVAC system). Based on region, the market is segmented into Asia-Pacific, North America, Europe, Latin America, and Middle East & Africa.
Analysis by Vehicle Type
The passenger vehicle segment is having the largest segment baby type in the automotive semiconductor market and is having market share off about 65%. The rise in demand for passenger cars worldwide is driving the growth of this segment. Furthermore, the increase in the installation of automotive infotainment systems in passenger cars is also leading towards its growth. The navigational services, voice control, parking assistance and others further expands the market.
On the other hand, the light commercial vehicle segment is the fastest growing segment and is expected to grow at a CGR of about 6% during the forecasted. The government initiatives through schemes and programs are contributing to the growth of the semiconductor manufacturing. This is expected to boost the market. For instance, in July 2022, The US government faster the chips act for the semiconductor manufacturing which leads to research and development, increasing the market growth.
Analysis by Application
The body electronics segment is holding the largest market share of about 22% in the global automotive semiconductor market and is expected for having a CAGR of 8.7% during the forecasted period. Manufacturers are developing more body electronics in their vehicles due to the rising demand for comfort such as electric seats, climate control systems, power windows and others. Companies are also contributing by taking initiatives to strengthen their operations in this segment. For instance, in July 2022, Mahindra and Mahindra limited collaborated with Qualcomm for improving vehicles embedded electronics.
On the other hand, the telematics and infotainment segment are the fastest growing segment by application in the automotive semiconductor market and is expected to have the highest CAGR during the forecasted period. The real time information, entertainment, and connectivity with external networks is enhancing the growth of the segment. Furthermore, the technological advancements such as autonomous driving and the adoption of electric vehicles require semiconductor for power management, battery monitoring, and control systems, contributing the growth of the segment in the automotive semiconductor market.
Global Automotive Semiconductor Market By Vehicle Type
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Automotive Semiconductor Market Regional Insights
Asia-Pacific, particularly China, Japan, and South Korea, serves as a global automotive manufacturing hub. The concentration of major automotive OEMs and the production of a substantial volume of vehicles contribute to the region's dominance in the automotive semiconductor market. The region is at the forefront of adopting advanced automotive technologies, including electric vehicles (EVs), autonomous driving features, and connected car solutions. This technological leadership propels the demand for automotive semiconductors, solidifying Asia-Pacific's dominant position.
North America is witnessing significant advancements in electric and autonomous vehicles. The rapid development and adoption of these technologies contribute to the region's fast-growing demand for automotive semiconductors. The tech-savvy nature of consumers in North America, particularly in the United States, results in a high demand for vehicles equipped with the latest technologies, including advanced infotainment systems, autonomous features, and connectivity solutions.
Global Automotive Semiconductor Market By Region
- Largest
- Fastest
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Automotive Semiconductor Market Dynamics
Drivers
Increasing Proliferation of Advanced Technologies
- The proliferation of advanced technologies within the automotive sector, such as electric vehicles (EVs), autonomous driving features, and connectivity solutions, serves as a primary driver. The increasing integration of complex systems like advanced driver assistance systems (ADAS) and sophisticated infotainment systems propels the demand for innovative semiconductor solutions. Additionally, the global automotive industry's evolution towards more energy-efficient and eco-friendly alternatives contributes to the demand for specialized semiconductors. The rising consumer expectations for safety, efficiency, and connectivity in vehicles further fuel the market's expansion.
Increasing in Demand for Advanced Vehicle Safety
- People are looking for safety features in advanced vehicles such as parking assistance, traction control, tire pressure monitor, airbags, and telematics which is increasing the demand off advanced vehicle solutions. The automotive semiconductors mainly used in advanced driver assistance systems technologies (ADAS). This technology help in detecting objects on the path of the vehicle and accordingly alert the driver based on the conditions. These advanced features can also decelerate or stop the vehicle depending on the nearby surroundings, thus contributing to driving the market further.
Restraints
High Ongoing Global Semiconductor Chip Shortage
- One of the main market restraints is the ongoing global semiconductor chip shortage, disrupting the production capacities of automotive manufacturers and leading to delays and supply chain disruptions. The intricate and sophisticated nature of automotive semiconductors poses another constraint, as designing and manufacturing these complex components requires advanced technologies and substantial investments. Moreover, the increased demand for electric vehicles (EVs) and the rapid evolution of autonomous driving technologies place additional pressure on semiconductor supply chains.
Failure in Operations During Extreme Climatic Conditions
- One of the main hurdles in the automotive semiconductor market is the operational failures during extreme climatic conditions. Due to extreme heat semiconductor breakdown can melt which leads to the increase in resistance and makes the signal week. It can lead to failures. Additionally, the extreme cold conditions can also lead to the stoppage of semiconductor functions which is not favourable in countries like Russia and Canada.
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Automotive Semiconductor Market Competitive Landscape
The competitive environment of the automotive semiconductor market is dynamic and characterized by intense rivalry among key players and a dynamic ecosystem shaped by technological advancements. Innovation is a key competitive factor. The landscape is marked by a constant race to develop cutting-edge semiconductor solutions to cater to the increasing demand for electric vehicles (EVs), advanced driver assistance systems (ADAS), and connectivity features. Additionally, semiconductor companies are forging partnerships to enhance their capabilities in addressing the complexities of automotive electronics. The emergence of new entrants and the role of traditional semiconductor giants create a competitive atmosphere, fostering innovation and driving the evolution of the Automotive Semiconductor Market.
Top Player’s Company Profiles
- Infineon Technologies AG (Germany)
- NXP Semiconductors N.V. (Netherlands)
- Renesas Electronics Corporation (Japan)
- STMicroelectronics N.V. (Switzerland)
- Texas Instruments Incorporated (USA)
- Robert Bosch GmbH (Germany)
- Analog Devices, Inc. (USA)
- ON Semiconductor Corporation (USA)
- Toyota Motor Corporation (Japan)
- Continental AG (Germany)
- DENSO Corporation (Japan)
- BorgWarner Inc. (USA)
- Allegro Microsystems, Inc. (USA)
- Micron Technology, Inc. (USA)
- Qualcomm Incorporated (USA)
- Microchip Technology Incorporated (USA)
- ROHM Co., Ltd. (Japan)
- Murata Manufacturing Co., Ltd. (Japan)
- Toshiba Corporation (Japan)
- Hyundai Motor Company (South Korea)
Recent Developments
-
In November 2023, Valence Semiconductor announced the launch of VS6320 chipset, a USB3.2 Gen1 extension solution.
-
In May 2023, MACOM successfully finalized the acquisition of OMMIC SAS in France for a total of $41.7 million. This strategic move positions OMMIC SAS as the foundational element for MACOM's recently established European Semiconductor Center.
-
In April 2023, Bosch is set to acquire the assets of TSI Semiconductors, a U.S. chipmaker, as part of its strategy to broaden its semiconductor business, particularly focusing on silicon carbide chips (SiC). This move aligns with the expansion goals of the German engineering and technology giant.
Automotive Semiconductor Key Market Trends
- Rising Consumer Awareness and increased use of clean label products: The escalating integration of semiconductors in electric vehicles (EVs) as automakers shift towards sustainable mobility solutions. The rise of advanced driver-assistance systems (ADAS) continues to drive semiconductor innovation, fostering the development of safer and more autonomous driving experiences. The advent of connected vehicles and the evolution towards smart mobility contribute to the growing demand for semiconductor solutions enabling enhanced connectivity, infotainment, and telematics features. Furthermore, there's a notable trend towards semiconductor specialization, with companies developing tailored solutions for specific automotive applications.
Automotive Semiconductor Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Global automotive semiconductor market analysis reveals a dynamic marketplace with a number of standout trends. The market is propelled by the increasing integration of advanced technologies in vehicles, particularly in electric and autonomous systems. The automotive safety systems expanding the market. There is a growing demand for hybrid and electric vehicles which provides a significant opportunity for automotive semiconductor market sector leading towards its expansion. Key product types include microcontrollers, memory devices, and sensors. The passenger vehicle segment is having the highest share while the commercial vehicle segment is quickly growing. Asia-Pacific dominates the market, driven by robust automotive manufacturing. North America is growing at a quick pace. One major trend is the rising consumer awareness and increased use of clean label products which leads towards the adoption, therefore expanding the growth. Key trends encompass the surge in electric vehicles, heightened demand for connectivity solutions, and the continuous development of advanced driver assistance systems.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 43.26 billion |
| Market size value in 2031 | USD 87.2 billion |
| Growth Rate | 8.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Semiconductor Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Semiconductor Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Semiconductor Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Semiconductor Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Semiconductor Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Semiconductor Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Automotive Semiconductor Market Report Snapshots
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