Automotive Semiconductor Industry Overview
The global automotive semiconductor market size was valued at USD 41.78 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.2% from 2021 to 2028.
Increasing demand for electronic content per car is expected to bolster the market growth over the forecast period. Furthermore, increasing penetration of electronic components in luxury to mass-produced cars is also expected to lead to steady market growth over the next few years. The other factors contributing to the market growth include the proliferation of connected cars, infotainment systems, automotive safety systems, and fuel efficiency standards.
Gather more insights about the market drivers, restrains and growth of the Global Automotive Semiconductor Market
Three key trends-namely, autonomy, electrification, and connected mobility-are expected to emerge as major revenue drivers. These trends will play a pivotal role in driving the demand for electronic content per car, subsequently driving the demand for semiconductors in the automotive space. For decades, ICE or internal combustion engine-driven cars have been the primary source of innovation in the automotive space. However, with the growing adoption of autonomy and electrification in the automotive industry, the demand for high-tech cars with improved functionality, backed by semiconductors and chips, is expected to gain momentum.
According to the World Health Organization, approximately 1.24 million individuals die as a result of road traffic crashes each year. If this situation persists, road traffic crashes would become the seventh leading cause of death by 2030. This has triggered an increased focus on the prevention of accidents through the implementation of active safety measures. As a result, active safety features are increasingly being integrated into vehicles to help avoid collisions and accidents. Amongst the vehicle safety provisions, crash avoidance technology, including automatic emergency braking systems for passenger vehicles, is set to remain a standard feature for a majority of the new vehicles produced from 2022 to 2023. Thus, with the rise in the adoption of vehicle safety systems, the market for automotive semiconductors is expected to grow significantly over the forecast period.
The outbreak of the COVID-19 pandemic and the consequent measures undertaken to control the infection rate created significant business volatility, which negatively impacted industries worldwide. Various industries have witnessed a major setback due to the pandemic, including the automobile semiconductor industry. Sales of semiconductors for automotive applications mainly depend on the vehicle sales volume and the level of vehicle electrification and digitization. Due to the outbreak of the COVID-19 pandemic, there has been a sharp decline in automotive sales. The deteriorating sales of passenger and commercial vehicles negatively impacted the automotive semiconductor market growth. Moreover, the electric vehicle industry also faced delays in production and raw material supplies due to looming delays in international export and import shipments.
Browse through Grand View Research's Automotive & Transportation Industry Research Reports.
- Electric Vehicle Market - The global electric vehicle market demand was estimated at 2,373.5 thousand units in 2019 and is expected to witness a CAGR of 41.5% 2020 to 2027. The market is driven by initiatives taken by governments of various countries to promote the manufacturing of electric vehicles (EVs).
- Commercial Vehicles Market - The global commercial vehicles market size was estimated at USD 1,274.50 billion in 2021 and is projected to register a compound annual growth rate (CAGR) of 4.0% from 2022 to 2030. The COVID-19 pandemic affected the automotive industry, with the market witnessing a decline in growth as a result of low automotive sales or new requirements.
Automotive Semiconductor Market Segmentation
Grand View Research has segmented the global automotive semiconductor market based on component, vehicle type, application, and region:
Automotive Semiconductor Component Outlook (Revenue, USD Million, 2017 - 2028)
- Processor
- Discrete Power
- Sensor
- Memory
- Others
Automotive Semiconductor Vehicle Type Outlook (Revenue, USD Million, 2017 - 2028)
- Passenger Vehicle
- Light Commercial Vehicle (LCV)
- Heavy Commercial (HCV)
Automotive Semiconductor Application Outlook (Revenue, USD Million, 2017 - 2028)
- Chassis
- Powertrain
- Safety
- Telematics & Infotainment
- Body Electronics
Automotive Semiconductor Regional Outlook (Revenue, USD Million, 2017 - 2028)
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Market Share Insights
- November 2020: NXP Semiconductors developed the S32K3 microcontroller (MCU) family, the new addition to its S32K product line. The new S32K3 family was designed for emerging zone controllers, battery management, and automotive body electronics.
- April 2020: Infineon Technologies AG acquired a semiconductor design and manufacturing company named Cypress Semiconductor Corporation to strengthen its focus on structural growth drivers and expand its microcontrollers, high-performance memories, connectivity components, and software ecosystems portfolios.
Key Companies profiled:
Some prominent players in the global automotive semiconductor market include
- Analog Devices, Inc.
- Infineon Technologies AG
- NXP Semiconductors
- Renesas Electronics Corporation
- Robert Bosch GmbH
- ROHM CO., LTD.
- Semiconductor Components Industries, LLC
- STMicroelectronics
- Texas Instruments Incorporated
- TOSHIBA CORPORATION
Order a free sample PDF of the Automotive Semiconductor Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
