Global demand for Automotive Semiconductor Market Size, in terms of revenue, was worth of USD 45.98 Billion in 2020 and is expected to reach USD 81.40 Billion in 2027, growing at a CAGR of 8.5% from 2020 to 2027. Rising production of electric vehicles, high production volumes of automobiles and growing advanced safety and security needs are anticipated to drive the growth of global automotive semiconductor market.
Some major key players for global automotive semiconductor Industry report cover prominent players SAMSUNG, NXP Semiconductors., SK HYNIX INC., Renesas Electronics Corporation., Toshiba Electronic Devices & Storage Corporation, Qualcomm Technologies, Fujitsu Semiconductor Limited, STMicroelectronics, Robert Bosch GmbH, Sony Semiconductor Solutions Corporation, Infineon Technologies AG, Texas Instruments Incorporated., ROHM CO., LTD., Analog Devices, Inc., Intel Corporation, Inc. and others.
The utilization of semiconductors in the automobile business is growing owing to its various new applications. Nowadays a large part of the car business’ improvement proceeds with the inclusion of semiconductor innovation in vehicle designs. Semiconductors are utilized in the electronic control units (ECU) of vehicles, particularly premium traveler vehicles. Semiconductors empower the vast majority of the advancements in automotive improvement as the modern cars contains features like mobile phone integration, heads-up displays, comfort, performance, and independent driving guides which need the guide of the semiconductor. As vehicles become considerably complex, demand for automotive semiconductors will increase logically and give an incredible long term development motor for the automotive industry. The quickest developing applications of semiconductors in a vehicle are telematics and infotainment, and safety and powertrain. Discrete power devices and memory devices are the quickest developing part of the automotive semiconductor industry.
Global automotive semiconductor market is segmented on the basis of component, vehicle type, fuel, application and region & country level. Based upon component, automotive semiconductor market is classified into processors, analog IC, sensors, discrete power device, memory device and lightning device. Based upon vehicle type, the market is divided into light commercial vehicle (LCV), heavy commercial vehicle (HCV), passenger car. Based on the fuel, automotive semiconductor market is classified into gasoline, diesel and electric/hybrid electric vehicle (EV/HEV). Based on application, the market is classified into power electronics, chassis, safety, body electronics, comfort/ entertainment units and others.
One of the major factors driving the growth of global automotive semiconductor market is growing production of electric vehicle globally. According to The International Council on Clean Transportation (ICCT), global EV production surpassed 2 million per year in 2018 and sold over 80,000 EVs per year. In addition, elevated production of automobiles is also supplementing the market growth. For Instance; number of automobile users are rapidly increasing day by day which may lead to accelerate the demand for semiconductors for vehicles productions. Furthermore, rising advanced safety and security needs are also augmenting the growth of global automotive semiconductor market in forecast period. For example; for self-driving cars, security began in semiconductors. The hundreds of composite chips within cars have to be protected against electrical faults that could damage the system following advanced features like accident avoidance and lane-change warnings. Automotive applications are spawning the development of a host of sensor types and airbags for use in systems associated to rider safety and vehicle diagnostics or monitoring. Thus, the demand for advanced safety security needs is fostering the growth of the market during the forcaste peried.
However, high cost of vehicle along with continuous optimization of component size may hamper the global automotive semiconductor market growth. In spite of that, rising preference towards hybrid and electric vehicle along with adoption of advanced automotive semiconductors can offer more opportunities for the further growth of the global automotive semiconductor market.