In terms of revenue, the Global Automotive Semiconductor Market is expected to reach USD 73.2 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 11.20% from 2022 to 2028.
Semiconductors are considered to be the most important electrical component in the machine manufacturing industry. Without semiconductor usage, it is quite impossible to run complicated machines. The use of semiconductors in the automotive industry started in late 1918 and has grown rapidly since then. Nowadays, the rapid electrification of the automotive car and the growing trend of EV vehicles fuel the Automotive Semiconductor Market. Also, the rising automotive production is expected to drive the market in the coming years.
Key Highlights from Report:
- The passenger car sub-segment of the vehicle type segment is anticipated to dominate the Automotive Semiconductor Market. The growing production and high demand for semiconductors in pas drive cars drive this segment and will grow rapidly during the forecast period. The global production of passenger cars in 2020 was approximately 55,000, which increased to 57,000 in 2021. This clearly shows that the rise in production will generate demand for semiconductors in the coming years.
- The body electronics sub-segment of the application segment is accounted for the largest market share in 2021 for the Automotive Semiconductor Market. The number of electronics present in the automotive car is majorly present in the body of cars. Thus, it’s expected that the body electronics segment will grow in the near future in terms of the demand for semiconductors.
- Europe is the largest regional segment. This surge is attributed to the rising demand for semiconductors in developing economies such as India, China, and Indonesia. The growing manufacturing industry and flexible market players drive this region. Also, lower wages and ample raw material availability make this region flourish during the forecast period.
The rapid growth in the automotive spare part market along with rising demand for EV vehicles is generating huge demand for the Automotive Semiconductor Market. The new automotive players are competing with existing manufacturers by developing new technology and features that help gain customer attraction and increase sales. This new technology is coupled with high-end electronics and hardware. To fulfill this, key semiconductor manufacturers are continuously investing time and funds in the Research and Development (R&D) of novel semiconductor technology. Thus, technological advancements in the field of Automotive Semiconductors are expected to boost the market shortly.
Europe is expected to dominate the Global Automotive Semiconductor Market in 2021 and is likely to continue the same trend during the forecast period. Major manufacturing industries are in china, India, and Thailand. China, being the center of global electronic suppliers, manufactures around 93.7% of semiconductor devices needed for automotive. India and Indonesia are considered to be the major assembly hubs for the Automotive Semiconductor business. Thus, in the coming years, it is expected that Europe will continue to flourish in the coming years owing to its high potential for manufacturing capability.