Market Analysis and Insights:
The market for Automotive Semiconductor was estimated to be worth USD 55.39 billion in 2023, and from 2023 to 2033, it is anticipated to grow at a CAGR of 6.68%, with an expected value of USD 112.94 billion in 2033.
Several key factors are driving the automotive semiconductor market. The increasing demand for electric vehicles (EVs) has led to a higher need for automotive semiconductors. EVs utilize advanced semiconductor chips for functions like power management, battery control, and overall vehicle performance. The rise in autonomous driving and connected cars has also fueled the demand for automotive semiconductors, enabling features such as advanced driver-assistance systems (ADAS) and vehicle-to-vehicle communication. Furthermore, the growing adoption of safety features like collision avoidance systems and automatic emergency braking is contributing to market growth. Technological advancements in semiconductor materials and manufacturing processes are also playing a significant role in propelling the market forward. Government regulations to reduce carbon emissions and promote sustainable transportation are further favoring the automotive semiconductor industry. Together, these factors are shaping the growth trajectory of the automotive semiconductor market.
Automotive Semiconductor Market Scope:
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2033 |
| Study Period | 2018-2033 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2033 | USD 112.94 billion |
| Growth Rate | CAGR of 6.68% during 2023-2033 |
| Segment Covered | By Component, By Application, By Vehicle Type, By Vehicle Propulsion, By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | NXP Semiconductors NV, Infineon Technologies AG, Renesas Electronics Corporation, Texas Instruments Incorporated, STMicroelectronics, Qualcomm Technologies, Inc., Robert Bosch GmbH, ON Semiconductor Corporation, Toshiba Corporation, and Analog Devices, Inc. |
Market Definition
An automotive semiconductor is an essential electronic element utilized in the production of vehicles to facilitate the amalgamation of diverse electrical and mechanical systems, thereby improving performance, safety, and functionality. These specific semiconductors are instrumental in the operation and regulation of features like engine management, safety mechanisms, entertainment systems, and advanced driver-assistance systems (ADAS) in contemporary cars.
Automotive semiconductors are integral to the operation of contemporary vehicles, serving as the power source for a variety of electronic systems that govern critical functions like engine management, braking mechanisms, powertrain control, and safety protocols. These components facilitate seamless communication and data analysis, thereby optimizing overall vehicle performance, safety, and convenience. As the automotive sector increasingly gravitates towards electric and autonomous vehicles, the demand for automotive semiconductors is poised to escalate. The evolution of semiconductor technology has yielded compact, energy-efficient, and reliable semiconductors that enhance battery longevity and diminish emissions. Evidently, automotive semiconductors hold significant importance in reshaping the automotive landscape and propelling advancements towards a sustainable and secure future.
Key Market Segmentation:
Insights On Key Component
Processor
The processor component is expected to dominate the Global Automotive Semiconductor Market. With the increasing demand for connectivity and automation in vehicles, the need for powerful processors is crucial. Modern cars are equipped with advanced driver-assistance systems, infotainment systems, and autonomous driving capabilities, all of which require high-performance processors. As automotive technology continues to evolve, the demand for more sophisticated processors will only grow. Additionally, the increasing adoption of electric vehicles further drives the need for powerful processors to manage battery systems and optimize energy efficiency. Therefore, the processor part is expected to be the dominant force in the Global Automotive Semiconductor Market.
Analog IC
The Analog IC component plays a crucial role in the Global Automotive Semiconductor Market. Analog ICs are used in various automotive applications, including fuel efficiency, safety systems, and power management. These components are essential in converting and amplifying signals from sensors, enabling accurate and reliable data for car functions. With the rising focus on safety and environmental regulations, the demand for analog ICs is expected to grow steadily. As automotive technology advances, the need for more sophisticated sensor interfaces, motor control systems, and power management circuits will increase, further driving the demand for analog ICs.
Discrete Power Device
Discrete power devices are vital components in the Global Automotive Semiconductor Market. They are used in power management circuits, such as electric vehicle (EV) charging systems and battery management systems. As the adoption of electric vehicles continues to rise, the demand for discrete power devices is expected to grow substantially. These devices enable efficient and reliable power conversion, ensuring the smooth operation of EVs. Furthermore, the increasing focus on energy efficiency and sustainability in the automotive industry will drive the demand for discrete power devices in hybrid and electric vehicles.
Sensor
The sensor component plays an essential role in the Global Automotive Semiconductor Market. Sensors are used in various applications, including advanced driver-assistance systems (ADAS), vehicle safety, and environmental controls. The demand for sensors is fueled by the increasing focus on vehicle safety and autonomous driving capabilities. Automotive sensors enable features such as lane departure warning, collision detection, and adaptive cruise control, enhancing both safety and convenience. With the growing number of sensors required for advanced vehicle functionalities and the continued development of autonomous vehicles, the sensor part is expected to experience significant growth.
Memory Device
The memory device component is an integral sector of the Global Automotive Semiconductor Market. Memory devices are used for data storage and retrieval in automotive applications, including infotainment systems, navigation systems, and advanced driver-assistance systems. As vehicles become more connected and equipped with high-definition displays and multimedia functionalities, the demand for memory devices will continue to grow. Additionally, the need for fast and reliable data processing in autonomous vehicles further drives the demand for memory devices. With the continuous advancements in automotive technology, the memory device part is expected to witness steady growth.
Logic IC
The logic IC player is a key component in the Global Automotive Semiconductor Market. Logic ICs are used in various automotive applications, including engine control units, powertrain control units, and vehicle connectivity systems. As vehicles become more intelligent and connected, the demand for logic ICs will continue to rise. These devices enable efficient data processing and communication between various vehicle systems. With the increasing complexity of automotive electronics and the growing emphasis on connectivity and automation, the logic IC part is expected to experience significant growth in the Global Automotive Semiconductor Market.
Insights On Key Application
Powertrain
Powertrain is expected to dominate the Global Automotive Semiconductor Market. With the increasing demand for electric vehicles (EVs) and hybrid vehicles, the powertrain plays a crucial role in driving the market for automotive semiconductors. EVs require sophisticated powertrain systems that rely heavily on semiconductors for motor control, battery management, and power electronics. Additionally, advancements in fuel efficiency and emission reduction technologies also contribute to the growth of the powertrain . As automakers continue to prioritize electric and hybrid vehicles, the demand for automotive semiconductors in the powertrain is expected to remain strong.
Safety
The safety component of the Global Automotive Semiconductor Market is driven by the growing emphasis on vehicle safety regulations and the integration of advanced driver assistance systems (ADAS). Semiconductors are crucial components in ADAS, providing features like collision avoidance, blind-spot detection, and lane departure warning systems. As the automotive industry continues to prioritize safety, the demand for automotive semiconductors in the safety is expected to grow.
Body Electronics
The body electronics component of the Global Automotive Semiconductor Market focuses on components that enhance the comfort, convenience, and security of a vehicle. This includes semiconductors used in systems like central locking, keyless entry, HVAC controls, and lighting. As consumer demands for improved comfort and convenience features in vehicles increase, the demand for semiconductors in the body electronics is also expected to rise.
Chassis
The chassis of the Global Automotive Semiconductor Market deals with semiconductors used in the control and management of various functions related to vehicle stability, suspension, and braking systems. These semiconductor components help improve driving dynamics, enhance safety, and optimize fuel efficiency. The growing demand for advanced chassis control systems and the integration of electronic stability control (ESC) in vehicles contribute to the demand for semiconductors in the chassis .
Telematics and Infotainment
The telematics and infotainment of the Global Automotive Semiconductor Market focuses on semiconductor components used in connectivity, navigation, and entertainment systems in vehicles. The increasing consumer demand for connected car features, such as in-vehicle infotainment, telematics services, and advanced navigation systems, drives the demand for automotive semiconductors in this . With the rise of connected cars and the integration of advanced communication technologies, the telematics and infotainment is expected to see significant growth in the automotive semiconductor market.
Insights On Key Vehicle Type
Passenger Vehicle
Passenger vehicles are expected to dominate the global automotive semiconductor market. This can be attributed to the increasing demand for safety features, advanced driver assistance systems (ADAS), infotainment systems, and electrification in passenger vehicles. The growing consumer preference for comfort, convenience, and connectivity has resulted in the integration of various semiconductors in passenger vehicles. Additionally, the rising adoption of electric vehicles and the demand for hybrid vehicles with advanced technologies further contribute to the dominance of passenger vehicles in the global automotive semiconductor market.
Commercial Vehicle
While passenger vehicles are expected to dominate the global automotive semiconductor market, commercial vehicles also play a significant role. Commercial vehicles, including trucks, buses, and vans, require advanced semiconductors for various applications such as telematics, fleet management, navigation systems, and advanced safety features. The demand for fuel efficiency, emission control, and connectivity in commercial vehicles drives the adoption of automotive semiconductors. Although the commercial vehicle may not dominate the market as much as passenger vehicles, it is still a significant part with distinct requirements and potential growth opportunities in the global automotive semiconductor market.
Insights On Key Vehicle Propulsion
Electric Vehicle
The Electric Vehicle propulsion is expected to dominate the Global Automotive Semiconductor Market. As the demand for electric vehicles continues to rise due to environmental concerns and technological advancements, the need for advanced semiconductor components becomes crucial. Electric vehicles require a wide range of semiconductor devices, including power electronics, sensors, and microcontrollers, to support their complex systems such as battery management, motor control, and connectivity. The growing adoption of electric vehicles by consumers and governments worldwide, along with the increasing investments by automotive manufacturers in electrification, contribute to the domination of this part in the Global Automotive Semiconductor Market.
ICE Vehicle
While the dominance of the Electric Vehicle propulsion is expected in the Global Automotive Semiconductor Market, the internal combustion engine (ICE) vehicle part still plays a significant role. Despite the increasing popularity of electric vehicles, ICE vehicles continue to be widely used globally, especially in developing countries and regions with limited charging infrastructure. The demand for automotive semiconductors in ICE vehicles remains strong, as these vehicles still require various semiconductor components for engine control, infotainment systems, safety features, and other functionalities. Although the market share of ICE vehicles may decline over time, their large existing base and ongoing production contribute to their relevance in the Global Automotive Semiconductor Market.
Insights on Regional Analysis:
Asia Pacific
Asia Pacific is expected to dominate the global automotive semiconductor market. This region has witnessed significant growth in recent years due to the rapidly expanding automotive industry in countries such as China, Japan, South Korea, and India. The demand for automotive semiconductors in Asia Pacific is driven by factors such as increasing vehicle production, advancements in electric and hybrid vehicles, and the growing adoption of smart car technologies. Moreover, the presence of major automotive semiconductor manufacturers in countries like Japan and South Korea further contributes to the dominance of Asia Pacific in the market. With the region's continuous emphasis on innovation and technological advancements, Asia Pacific is poised to maintain its leading position in the global automotive semiconductor market in the foreseeable future.
North America
With its mature automotive industry and strong technological infrastructure, North America holds a significant share in the global automotive semiconductor market. The region is home to several prominent automotive semiconductor manufacturers and is known for its advanced research and development capabilities. North America's dominance in the market is attributed to factors such as the high adoption of electric vehicles, the increasing integration of advanced driver-assistance systems (ADAS) in vehicles, and the presence of leading automotive companies and technology giants. Furthermore, the growing emphasis on connected cars and autonomous driving technologies in North America further drives the demand for automotive semiconductors in the region.
Europe
Europe is another region that plays a crucial role in the global automotive semiconductor market. The region boasts a strong automotive industry and is home to major automobile manufacturers. Europe's focus on reducing carbon emissions and promoting sustainable transportation has led to a significant growth in the adoption of electric vehicles and hybrid cars, driving the demand for automotive semiconductors. Additionally, the rise in connected car technologies and the implementation of stringent safety regulations have further boosted the demand for advanced automotive semiconductors in the region. With ongoing investments in research and development and the development of innovative automotive technologies, Europe is expected to maintain a substantial share in the global automotive semiconductor market.
Middle East & Africa
The Middle East & Africa region is witnessing steady growth in the automotive semiconductor market. The region's emerging economies, such as the United Arab Emirates and South Africa, are experiencing an increase in vehicle production and sales, contributing to the demand for automotive semiconductors. Moreover, the growth in smart city projects, infrastructure development, and the growing adoption of electric vehicles in countries like Saudi Arabia and the UAE are expected to drive the demand for automotive semiconductors in the region. While the Middle East & Africa may not dominate the global market in terms of sheer volume, its potential for growth and the increasing focus on technology advancements make it an important player in the global automotive semiconductor industry.
Latin America
The Latin America automotive semiconductor market is poised for growth, with Brazil and Mexico emerging as key nations in the region due to the rise in the production of motor vehicles. Brazil's Association of Automotive Vehicle Manufacturers predicts a significant increase in exports in 2021. However, the global semiconductor supply crisis impacted the industry in the first half of the year. Despite this setback, the automotive industry is expected to recover, driving demand for semiconductors in various components and creating new opportunities in the Brazilian market. In Mexico, the transportation infrastructure is expanding, with several automakers increasing demand for semiconductors despite manufacturing interruptions due to chip shortages.
Company Profiles:
Prominent figures within the worldwide automotive semiconductor sector have a crucial impact on the progress of cutting-edge semiconductor technologies and solutions tailored to address the increasing needs and standards of automotive uses. Their contributions are substantial towards the advancement and creation of sophisticated automotive systems that enhance performance, safety, communication, and connectivity within vehicles.
Prominent companies in the automotive semiconductor sector comprise NXP Semiconductors NV, Infineon Technologies AG, Renesas Electronics Corporation, Texas Instruments Incorporated, STMicroelectronics, Qualcomm Technologies, Inc., Robert Bosch GmbH, ON Semiconductor Corporation, Toshiba Corporation, and Analog Devices, Inc. These organizations are pivotal in the provision of cutting-edge semiconductor solutions for the automotive domain, facilitating progress and ingenuity in various automotive applications like advanced driver assistance systems (ADAS), electric vehicles (EVs), and autonomous driving. Leveraging their diverse product arrays and technological acumen, these key stakeholders are actively engaged in addressing the escalating needs and specifications of the automotive domain, thereby propelling the industry towards a more intelligent, secure, and interconnected future.
COVID-19 Impact and Market Status:
The worldwide automotive semiconductor industry has faced notable repercussions from the effects of the Covid-19 pandemic, causing interruptions in supply chains and a notable decline in the global demand for vehicles.
The global automotive semiconductor market has been greatly impacted by the COVID-19 pandemic. Lockdown measures and restrictions worldwide have led to a decrease in automotive production and sales, resulting in a lower demand for semiconductors in vehicles. Production halts and limited operations by automakers have disrupted the supply chain, causing delays and shortages in the semiconductor sector. The trend towards remote work and online education has also contributed to reduced travel and consumer spending, influencing vehicle sales negatively. Nevertheless, the demand for semiconductors in electric and autonomous vehicles has remained steady, driven by ongoing research and development efforts in these sectors. As countries gradually ease restrictions and the automotive industry undergoes recovery, there is an anticipation of increased demand for automotive semiconductors. Industry growth is expected as automakers resume operations, embrace digitalization, and invest in cutting-edge technologies. To address supply chain vulnerabilities, the industry is working on implementing resilient and diversified sourcing strategies to enhance its ability to withstand potential future disruptions.
Latest Trends and Innovation:
- On July 7, 2020, NXP Semiconductors announced the acquisition of Marvell's Wi-Fi and Bluetooth assets, expanding NXP's wireless connectivity portfolio for automotive applications.
- On October 5, 2020, ON Semiconductor announced the acquisition of GT Advanced Technologies' silicon carbide (SiC) wafer manufacturing assets, strengthening its position in the development and production of SiC-based power devices for electric vehicles.
- On October 13, 2020, Infineon Technologies announced the acquisition of Cypress Semiconductor, expanding Infineon's presence in the automotive market and strengthening its portfolio of automotive semiconductor solutions.
- On November 9, 2020, Renesas Electronics announced the acquisition of Dialog Semiconductor, aiming to strengthen its position in the automotive sector by leveraging Dialog's expertise in low-power mixed-signal and power management technologies.
- On February 9, 2021, Qualcomm Technologies and General Motors announced a strategic collaboration to deliver enhanced digital cockpit systems and wireless technologies for General Motors' next-generation vehicles, leveraging Qualcomm's automotive technology innovations.
- On March 16, 2021, Intel announced the acquisition of Mobileye, a leader in autonomous driving technology, to accelerate Intel's presence in the automotive market and advance its development of autonomous driving solutions.
- On April 28, 2021, Texas Instruments (TI) introduced its new Jacinto 7 processors, targeted for automotive infotainment and cluster applications, offering enhanced graphics and compute capabilities for next-generation automotive systems.
- On June 22, 2021, STMicroelectronics announced the launch of its new B-G475E-DPOW1 Discovery Kit, enabling fast and flexible prototyping of automotive applications based on its automotive microcontrollers.
- On July 7, 2021, Samsung Electronics announced the development of its automotive-grade multi-chip package (MCP) solution, integrating multiple semiconductors into a single package, to meet the stringent requirements of automotive applications.
- On September 15, 2021, Analog Devices introduced its new Automotive Audio Bus (A2B) technology, providing a high-quality digital interface for audio and data communication between automotive sensors, microphones, and amplifiers.
Significant Growth Factors:
The expansion drivers of the Automotive Semiconductor Market encompass rising interest in electric vehicles, progress in autonomous driving capabilities, and the incorporation of innovative safety and entertainment systems.
The automotive semiconductor industry has experienced notable growth in recent times due to various key drivers. One prominent factor driving this growth is the rising popularity of electric vehicles (EVs). As the automotive sector shifts towards sustainability, the demand for efficient and cutting-edge semiconductor technologies has become essential. The incorporation of electric powertrains and advanced driver assistance systems (ADAS) in EVs has significantly increased the requirement for automotive semiconductors, which are critical for ensuring the performance and safety of these vehicles. Additionally, the market is being propelled by the increasing prevalence of connected and autonomous vehicles. With ongoing technological advancements, vehicles are becoming more interconnected and reliant on semiconductor components to support functionalities like infotainment systems, in-car connectivity, and autonomous driving features. As consumers seek enhanced comfort, convenience, and safety in their vehicles, the demand for automotive semiconductors continues to grow. Moreover, global governments are enforcing stringent regulations and standards concerning vehicle safety, emissions control, and fuel efficiency. To meet these mandates, automakers are turning to semiconductor solutions to create innovative electronic systems that improve vehicle performance and decrease carbon emissions.
Restraining Factors:
The automotive semiconductor industry faces constraints due to global economic uncertainties and fluctuations in consumer demand.
The market for automotive semiconductors faces several challenges that could impede its progress and advancement. The global automotive industry has been significantly impacted by the ongoing COVID-19 pandemic, causing disruptions in supply chains and production delays. This has directly affected the demand for automotive semiconductors as manufacturers struggle to meet their production targets. Furthermore, a shortage of semiconductor chips due to high demands from various sectors, including the automotive industry, has further hindered the growth of the automotive semiconductor market. This scarcity has resulted in production cutbacks and delayed vehicle deliveries, affecting sales and market expansion negatively. Additionally, the automotive sector is moving towards electric and autonomous vehicles that rely on sophisticated semiconductor technology. However, the high costs involved in developing and implementing these technologies pose challenges, particularly for smaller automotive manufacturers. Moreover, the integration of advanced semiconductors into vehicles is complicated, and the absence of standardized protocols creates obstacles for manufacturers. Despite these challenges, the automotive semiconductor market is expected to bounce back as the industry recuperates from the pandemic and semiconductor producers scale up their production capacities. The increasing focus on electric and autonomous vehicles presents new prospects for the market, and advancements in semiconductor technology are poised to overcome obstacles and propel market growth in the near future.
Key Segments of the Automotive Semiconductor Market
Component Overview
• Processor
• Analog IC
• Discrete power device
• Sensor
• Memory Device
• Logic IC
Application Overview
• Powertrain
• Safety
• Body Electronics
• Chassis
• Telematics and infotainment
Vehicle Type Overview
• Passenger Vehicle
• Commercial Vehicle
Vehicle Propulsion Overview
• ICE Vehicle
• Electric Vehicle
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• U.K
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The automotive semiconductor market is growing at a CAGR of 6.68% over the forecast period.
The application of the automotive semiconductor market (Powertrain, Safety, Body Electronics, Chassis, Telematics and infotainment.
Asia-Pacific dominated the market for automotive semiconductor market and accounted for the largest revenue share.
The top companies that hold the market share in automotive semiconductor market are NXP Semiconductors NV, Infineon Technologies AG, Renesas Electronics Corporation, Texas Instruments Incorporated, STMicroelectronics, Qualcomm Technologies, Inc., Robert Bosch GmbH, ON Semiconductor Corporation, Toshiba Corporation, and Analog Devices, Inc.
The base year for the report is 2023 in automotive semiconductor market.