PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1730694
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1730694
Automotive System in Package (SiP) Market size was valued at USD 2,103.42 Million in 2023, expanding at a CAGR of 10.20% from 2024 to 2032.
Automotive System-in-Package (SiP) is an advanced packaging method where multiple integrated circuits (ICs) and passive components like resistors, capacitors, and inductors are combined into a single compact package to perform a specific function, optimized for automotive applications.
Automotive System in Package (SiP) Market- Market Dynamics
Increasing demand for EVs & ADAS and the rising trend of connected cars are expected to propel market demand
The Automotive System in Package (SiP) market is witnessing robust growth due to a convergence of technological innovations, adoption EVs, and shifting consumer expectations. SiP technology, which integrates multiple chips and components into a single package. With the global shift toward electric vehicles (EVs), there is a growing need for compact and efficient electronic systems for battery management, motor control, and charging systems. Automotive SiPs help reduce space while ensuring high thermal and electrical performance. Battery Management Systems (BMS), for example, benefit greatly from SiPs because they require real-time monitoring of voltage, current, and temperature across multiple battery cells. SiPs also enhance reliability and reduce assembly complexity, which is crucial in EVs where space and weight are at a premium.
Advanced Driver Assistance System (ADAS) is one of the fastest-growing sectors in automotive electronics. Features such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and 360-degree camera systems require powerful yet compact electronic control units (ECUs). Automotive SiPs are ideal for such systems as they can integrate sensors, processing units, memory, and power management components in a small footprint. This enables high-speed data processing and minimal signal interference, which are critical for real-time decision-making in ADAS. Modern vehicles are increasingly connected, offering features like over-the-air (OTA) updates, real-time traffic information, vehicle-to-vehicle (V2V) communication, and rich infotainment experiences. These functions require integration of wireless communication modules (Wi-Fi, Bluetooth, 5G), microcontrollers, and multimedia processors. The growing consumer demand for immersive in-car experiences and continuous connectivity is a strong driver for SiP adoption. Automotive SiPs enable this integration in a cost-effective and compact form, supporting seamless data communication and multimedia processing, fueling market growth.
Automotive System in Package (SiP) Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 10.20% over the forecast period (2024-2032)
Based on Packaging Technology segmentation, 2.5D IC packaging segment was predicted to show maximum market share in the year 2023, owing to its production capacity in packaging.
Based on Packaging Method segmentation, flip chip segment was the leading Packaging Method in 2023, due to its reduced size and more functionalities.
Based on End Use segmentation, ADAS segment was the leading End Use in 2023, due to increased demand for semiconductor chips & ICs in ADAS system.
On the basis of the region, North America was the leading revenue generator in 2023, owing to the presence of top companies like Qualcomm, Intel, Powertech, etc.
The Global Automotive System in Package (SiP) Market is segmented on the basis of Packaging Technology, Packaging Method, End Use, and Region.
The market is divided into three categories based on Packaging Technology: 2D IC packaging, 2.5D IC packaging, and 3D IC packaging. The 2.5D IC packaging segment dominates the market. High production demand and easy packaging is expected to fuel segment growth.
The market is divided into three categories based on the Packaging Method: wire bond, flip chip, and fan-out wafer level packaging. The flip-chip segment dominates the market. The fan-out wafer-level packaging is expected to expand at the fastest rate over the forecast period. The high demand from compact packaging, especially small factor solutions, is supplementing segment demand.
The market is divided into three categories based on End Use: infotainment & telematics modules, ADAS, and others. The ADAS segment dominates the market and is expected to maintain its high dominance during the forecast period. Growing demand for EVs and trend of ADAS system with safety awareness is anticipated to foster market growth.
Automotive System in Package (SiP) Market- Geographical Insights
Worldwide, the Automotive System in Package (SiP) market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Asia-Pacific is the largest and fastest-growing market for automotive SiPs. China leads global EV production and adoption with over 50% of the world's EVs being sold in China. Japan and South Korea house major semiconductor giants like Renesas, Toshiba, Samsung, SK Hynix, and packaging leaders like ASE Group. According to the U.S. automotive data, the U.S. accounts for around 25-30% of global ADAS deployments, heavily reliant on miniaturized SiP solutions. In addition, Electric vehicles (EVs) are expected to represent about 40% of global car sales by 2030, heavily pushing demand for advanced SiPs.
The Automotive SiP market is highly competitive and rapidly evolving. Major players in semiconductors and automotive electronics are investing heavily to strengthen their product portfolios, innovating 3D packaging technologies. For example, Amkor Technology Inc. Opened new factories dedicated to automotive semiconductor packaging in Portugal and Vietnam and partnering with top OEM semiconductor suppliers for heterogeneous SiP development. Market participants are developing SiP solutions integrating MEMS sensors and controllers for tire pressure monitoring systems (TPMS) and ADAS. Companies also focus on expansion of SiP capabilities specifically targeted at high-reliability automotive packages with better thermal dissipation.
In 2024, Infineon Technologies introduced AURIX SiP microcontrollers targeting safety-critical applications like autonomous driving.
In 2024, NXP Semiconductors announced heavy investment in S32 Automotive Platform combining SiP concepts for scalability across vehicle domains as a part of their key strategy.