Global Automotive Semiconductor Market

Automotive Semiconductor Market- By Component, Vehicle Type, Fuel Type, Application, and Region.

Market Synopsis:

The Global Automotive Semiconductor Market is valued at USD 38.1 Billion in the year 2021 and is forecasted to reach a value of USD 73.2 Billion by the year 2028. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 11.50% over the forecast period.

ADAS (Advanced Driver Assistance Systems) sales are expected to grow in the future due to rising demand for safety features designed to prevent collisions and accidents by offering technologies that alert the driver to potential problems and avoid collisions by implementing safeguards and taking control of the vehicle. Semiconductors are used in ADAS to improve the systems functionality. Furthermore, the adoption of 64-bit CPUs for automotive ADAS applications is being driven by larger data volumes.

The transition from a dispersed to a more centralized ECU is becoming more common. Because the ECUs are integrated, the ADAS SoCs (System on Chips) are becoming increasingly complex, necessitating the development of novel semiconductor characteristics and semiconductor process methods. The worldwide Automotive Semiconductor Market is expected to rise due to the increasing popularity of electric automobiles and the subsequent use of Automotive Semiconductors. Furthermore, rising safety concerns about vehicular transportation are causing vehicle makers and purchasers to favor cars that use Automotive Semiconductors. This has aided the markets expansion even further.

Mergers, acquisitions, and business expansions by major players in the Automotive Semiconductor industry are likely to provide the market with significant growth prospects. Furthermore, because there is a growing demand for electric vehicles, many new automobile manufacturers are entering the electric vehicle production industry. This will also broaden the scope of the Automotive Semiconductor industrys growth prospects. However, the biggest factor projected to hinder market expansion is high vehicle pricing around the world.

Market Segmentation:

The Automotive Semiconductor Market is segmented based on Component, Vehicle Type, Fuel Type, and Application. Based on components, the market is segmented as Processor, Analog IC, Discrete Power Device, Sensor, Memory Device, and Lighting Device. Based on vehicle type, the market is segmented as Passenger Car, Light Commercial, Vehicle (LCV), and Heavy Commercial Vehicle (HCV). Based on fuel type, the market is segmented as Gasoline, Diesel, and Electric/Hybrid Electric vehicles (EV/HEV). Based on application, the market is segmented as Powertrain, Safety, Body Electronics, Chassis, and Telematics and infotainment.

Based on Component:

The market is divided into processors, Analog IC, Discrete Power devices, Sensors, Memory Devices, and Lighting Devices. The component segment, which comprises analog IC, is predicted to grow at a faster Compound Annual Growth Rate (CAGR) over the projection period. The automotive industry has a high need for semiconductors across all component types. These elements aid in the electrification, networking, and shared mobility services of vehicles. The automotive chip, which is built into the vehicle, provides a warning to the driver and assists them in taking the appropriate actions in the event of an accident or crash. In navigation and infotainment systems, analog ICs are widely employed. Furthermore, ultra-luxurious automobiles feature a more complex in-vehicle infotainment system, and demand for analog ICs is likely to rise in the coming years as the sale of ultra-luxurious vehicles rises.

Based on Vehicle Type:

In 2021, the passenger car segment held the biggest market share, and this trend is likely to continue throughout the projection period. The strong demand for passenger automobiles around the world is to blame for this growth. Furthermore, the increasing use of automotive entertainment systems in passenger cars for hands-free phone connectivity and navigational services, as well as climate control, voice control, parking assistance, two-way communication tools, and internet access, is fueling category expansion.

Asia Pacific is Projected to Grow at the Highest Compound Annual Growth Rate (CAGR) During the Forecast Period

By 2028, the market in Asia-Pacific is expected to grow at the highest rate. The strong growth rate of the market in the Asia-Pacific region is due to direct cooperation between Automotive Semiconductor manufacturers and vehicle OEMs. Furthermore, there has been an increase in demand for luxury and semi-luxury automobiles in this region, which has aided in the growth of the Automotive Semiconductor industry. However, over the forecast period, Europe is expected to have the second-highest Compound Annual Growth Rate (CAGR). Electric car demand is expected to increase in Europe, fueling industry growth. Automakers are constantly focused on creating, innovating, and developing autonomous vehicles, which have attracted a significant number of buyers in key automotive manufacturing countries. Semiconductors are expected to become a crucial part of the automotive industrys advancements in the next years, thanks to consumer desire for smart and completely driverless vehicles.

Competitive Landscape:

The key players in the Global Automotive Semiconductor Market include- Renesas Electronics Corp. (Japan) and others.

Segmentation of the Global Automotive Semiconductor Market: