Automotive Semiconductor Market – Rapid Increase in Automotive Sector is expected to Lead Market Growth – Growing at a Compound Annual Growth Rate (CAGR) 11.5% from 2022 to 2028
As stated in our extensive report; providing insights on Key Drivers, Key Restraints, Segments (i.e., by Component, Vehicle Type, Fuel Type, Application and Region); the Global Automotive Semiconductor Market accounted for USD 38.1 Billion in the year 2021.
“Key Factors Likely to Drive Growth of Automotive Semiconductor Market”
Semiconductors enable most innovation in vehicle development and are the catalyst for growth that drives consumer demand. Semiconductors are special types of electronic components that possess the property to transfer electricity through them under certain conditions. Semiconductors are used in vehicles to ensure that the associated component operates efficiently in all conditions.
Semiconductors used in automobiles are made of silicon and germanium as the basic components that are essential for the better working of automotive electronics. The modern car packs feature mobile phone integration, head-up display, autonomous driving aids, comfort, and performance. As automobiles become even more complicated, the demand for Automotive Semiconductor will steadily increase and provide a powerful long-term growth engine for the automotive industry
Amid the COVID-19 pandemic, the global economy has seen unpredicted challenges. However, the industry experts believe that post the pandemic, the demand for personal mobility will increase owing to the need to avoid public transportation and avoiding human interaction.
Rapid Developments in the Automotive Industry
In the automotive industry, a semiconductor is used to control the fail-safe system, manages the functions of electrical control units and automotive fault tolerance systems, and manages the error that occurs in the vehicle (accelerator, anti-lock brake interface, and broken lights), and informs the microcontrollers and the installed security system. Semiconductors are a key part of the automotive industry and a rapid development in the automotive industry is expected to complement the market growth over the forecast period.
Growing Demand for Electric Vehicles
Electric and hybrid vehicles are becoming increasingly popular around the world. The decreasing cost of components such as lithium-ion batteries, sensors, and microcontrollers is expected to drive the development of an electric vehicle mass market shortly. Furthermore, because electric vehicles play an important role in reducing carbon emissions and combating air pollution, governments around the world are heavily promoting them.
Also, the demand for safety features, such as parking assistance, collision avoidance systems, lane departure warnings, traction control, electronic stability control, tire pressure monitors, airbags, and telematics is experiencing an upward trend owing to an increase in several road accidents worldwide. Automotive Semiconductors are a major component used in numerous advanced driver assistance systems (ADAS) technologies, which help ADAS systems perform efficiently and can detect and classify objects on the path of the vehicle, and accordingly alert the driver about the nearby surroundings and road conditions.
Europe held the largest share in the Automotive Semiconductor Market and is expected to continue this trend in the forecast period. This is attributable to the strict government regulations and rapid technological advancement in the region.
Some of the key players in the Global Automotive Semiconductor Market include- Renesas Electronics Corp. (Japan), Infineon Technologies AG (Germany), STMicroelectronics N.V. (Switzerland), NXP Semiconductors N.V (Netherlands), Texas Instruments Inc. (US), Denso Corp. (Japan), Delphi Automotive PLC (UK), Standard Motor Products, Inc. (US), Honda Motor Co., Ltd (Japan), General Motors (US), Ford Motor Co. (US), and others.
Browse the full Report - Automotive Semiconductor Market Size, Share & Trends Analysis Report by Component (Processor, Analog IC, Discrete Power Device, Sensor), by Vehicle Type (Passenger Car, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV)), by Fuel Type (Gasoline, Diesel, Electric/Hybrid Electric Vehicle (EV/HEV)), by Application (Powertrain, Safety, Body Electronics, Chassis), by Region (North America, Europe, Asia Pacific, Latin America) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)