PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320186
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320186
The Automotive Semiconductor Market size was valued at USD 43,008.5 Million in 2022, expanding at a CAGR of 12.6% from 2023 to 2030.
Automotive semiconductors refer to electronic components specifically designed and manufactured for use in vehicles. A semiconductor device for automotive applications is constantly evolving and developing rapidly. It plays a significant role in powering engines, controlling systems, and providing safety features in modern vehicles. Emissions and fuel efficiency have also been improved by automotive semiconductor technology. New technologies are constantly being developed for cars and other vehicles by the automotive semiconductor industry. Enhanced sensors, microcontrollers, processors, memory, and power management systems improve performance and safety. Continuing to grow and develop new technologies, the automotive industry will demand advanced automotive semiconductors.
The demand for automotive semiconductors is expected to grow in parallel with the increasing adoption of electric and hybrid vehicles The Automotive industry has seen a clear trend toward electrification and more sustainable modes of transportation. As a result, compared to vehicles powered by traditional internal combustion engines, electric and hybrid vehicles are gaining popularity. This is a result of their lower carbon dioxide emissions and increased fuel economy.
The new edition of the IEA's annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million. This explosive growth means electric cars' share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is set to increase further to 18% this year, based on the latest IEA projections. The development and commercialization of autonomous vehicles demand sophisticated semiconductor technologies, including sensors, processors, and AI-based systems, which may provide growth opportunities for the market. However, the automotive semiconductor industry may have restricted to supply chain disruptions during times of regional, national, or international crises or events that have an impact on manufacturing, shipping, and logistics.
The Global Automotive Semiconductor Market is segmented on the basis of Component, Vehicle Type, Application, and Region.
The market is divided into three categories based on Components: Processors, Sensors, Memory Devices, Integrated Circuits, and Discrete Power Devices. Processors dominate the market. Automotive semiconductors and processors, which are vital to the contemporary automotive industry, enable the creation of cutting-edge features and capabilities in vehicles.
The market is divided into two categories based on Vehicle Type: Passenger Vehicles, Light Commercial Vehicle, and Heavy Commercial Vehicles. The passenger vehicle segment is expected to dominate the growth of the Automotive Semiconductor market. The market for automotive semiconductors had been expanding significantly, propelled by the rising use of electronic components and cutting-edge technologies in passenger cars.
The market is divided into two categories based on Application: Chassis, Power Electronics, Safety, Body Electronics, Comforts/Entertainment Units, and Others. The safety segment dominates the market growth. The automotive semiconductor market is crucial for enhancing vehicle safety. As cars grow more technologically advanced, the need for semiconductor components designed to improve safety features and functionality has been rising dramatically.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Asia Pacific is expected to drive the growth of the Automotive Semiconductor Market, due to the Rising adoption of commercial electric vehicles. The rise in electric commercial cars, along with improvements in connected and automated driving technology creates an enormous prospect for the Asia Pacific automotive semiconductor market. China was the frontrunner, accounting for around 60% of global electric car sales. More than half of the electric cars on roads worldwide are now in China and the country has already exceeded its 2025 target for new energy vehicle sales. Government incentives and rising environmental awareness are promoting the adoption of electric vehicles, leading to an increase in automotive semiconductor demand in the North and European region.
The market for automotive semiconductors was expanding rapidly, largely due to the rising demand for electronic parts and cutting-edge automotive technologies. The competitive environment in the automotive semiconductor business is characterized by the existence of numerous large competitors, each offering a wide range of semiconductor products customized for automotive applications. Some of the primary techniques used by corporations to strengthen their reach and expand their market share include new product launches, distribution network development, R&D spending, and mergers and acquisitions. For example, Germany's Robert Bosch, one of the world's most important automotive suppliers, will invest USD3 billion (USD3.04 billion) through 2026 to expand its production of semiconductor chips, the company has announced. The move reinforces European production of a component whose recent scarcity has thrown automotive production into disarray.
May 17, 2023, ON Semiconductor Corp (ON.O) is considering investing USD2 billion in boosting the production of silicon carbide chips that are widely used to help extend the range of electric vehicles, company executives said on Tuesday.