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Automotive Semiconductor Market Size, Share, and Analysis, By Component (Processor, Analog IC, Discrete Power Device, Sensor, and Others), By Vehicle Type (Passenger Car, LCV, HCV, and Others), By Fuel Type (Gasoline, Diesel, EV/HEV), By Application (Powertrain, Safety, Chassis, Telematics & Infotainment, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Automotive Semiconductor Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 10.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 61.4 billion and is projected to reach USD 179 billion by the completion of 2034.
Automotive semiconductor is an essential component in contemporary vehicles, which serves as the central processing unit for electronic systems installed within vehicles. These semiconductors are often integrated into microcontrollers and have a significance in providing functionalities such as engine control, safety features, and infotainment. Additionally, they act as a neurological hub, which is used to process data and enable seamless connection between various vehicle components. This electronic intelligence is important for driving modern automotive innovations, thereby enabling technologies that improve vehicle performance, efficiency, and its safety. Moreover, the need for complex automotive semiconductors is rising with the developing technology, which is encouraging the production of connected and smart automobiles. Therefore, these semiconductors serve as a major catalyst, which is used to power the sophisticated electronic ecosystems of automobiles and improves the driving experience.
Automotive Semiconductor Market is projected to reach USD 179 billion over the forecast period, owing to the growing integration of advanced electronics in vehicles. The surge in demand for semiconductors within the automotive sector is attributed to the rising adoption of electric vehicles and autonomous driving technologies. Moreover, continuous developments in safety systems, infotainment, and vehicle efficiency contribute to the expanding market ecosystem. This shift towards smart and connected vehicles intensifies the requirement for advanced semiconductors, which further drives innovation in the industry. Additionally, the global automotive semiconductor market experience intense competition among major players that are striving to address the demands of automakers. Furthermore, the advent of modern technologies such as artificial intelligence, machine learning, and 5G connectivity further pushes the growth of the market. Therefore, with a focus on improving performance, along with safety and driving experiences, the automotive semiconductor market will witness continuous growth and technological developments.
Source: Fatpos Global
Based on component , the automotive semiconductor market is segmented into processor, analog IC, discrete power device, sensor, and others. The Analog IC (Integrated Circuit) segment will maintain the market dominance owing to its essential role in managing the complicated electronic systems within contemporary vehicles. With electronics emerging as a major selling point among automakers, modern vehicles contain multiple sensors, electronic control units (ECUs), wire harnesses, and complex network systems. Thus, analog integrated circuits play a significant role in supporting CPUs and sensors, allowing smooth communication among the various electronic components in a vehicle. Additionally, the growing electrification of the powertrain segment fuels the demand for power devices and presents an opportunity for substantial growth in analog ICs segment. Consequently, as automotive electronics continue to develop, the analog IC segment is expected to endure its dominance, due to its indispensable role in ensuring efficient and interconnected operation of various vehicle systems.
Telematics and Infotainment segment will dominate due to the increased need for automotive semiconductors to create car electronics
By application, automotive semiconductor market is divided into powertrain, safety, chassis, telematics & infotainment, and others. Telematics and Infotainment segment will likely dominate the market due to the constant evolution of cell phone technology, internet connectivity, and GPS receivers. The increasing need for precision-based features like location tracking, job dispatch, and vehicle diagnostics drives the demand for telematics and infotainment systems. Additionally, these systems showcase flexible capabilities, which seamlessly integrate with GPS and entertainment systems in modern vehicles. This integrated network can support user peripherals such as short-range wireless devices, mobile phones, and USB devices. Therefore, with rising consumer expectations for better connection and entertainment options, the dominance of telematics and infotainment segment is projected to be fueled by technology advancements and the incorporation of advanced features into car electronics.
Source: Fatpos Global
Rising Popularity of Electric Vehicles (EVs) Generates Growth Opportunities
Rising focus on sustainable mobility has become a significant force behind the growing demand for electric vehicles (EVs), which simultaneously encourage the requirement for automotive semiconductor. Governments across the world are advocating for strict emission standards, and consumers are increasingly choosing environmentally friendly transportation options, which contributes to a major shift toward vehicle electrification. Electric vehicles rely on advanced semiconductor technologies for effective power management, battery control, and complex connectivity solutions. This upsurge in demand for EVs, along with technological progress in the electric vehicle sector, presents a significant market opportunity for semiconductor manufacturers. Therefore , automotive semiconductors are poised to address the requirements of this expanding industry and aligns with the global commitment towards sustainable and eco-friendly transportation solutions.
Innovations in Self-Driving Technologies will Result in Market Expansion
Improvements in autonomous driving technology is a fundamental growth factor for the automotive semiconductor market. The evolution and integration of autonomous vehicles requires innovative semiconductor technologies to power complex systems such as advanced driver assistance systems (ADAS) and autonomous driving capabilities. These systems depends on high-performance processors, sensors, and communication technologies to provide quick decision-making, and ensures the safety of passengers and pedestrians. Furthermore, with ongoing investments from automotive manufacturers and technology companies in autonomous driving research and development, there is a projected surge in demand for advanced semiconductor components. This anticipated rise in demand is expected to promote the growth within the automotive semiconductor market, highlighting the industry's commitment to enhance autonomous driving capabilities.
Supply Chain Disruptions to Prevent Industry Growth
Vulnerability to supply chain disruptions is a notable constraint for the automotive semiconductor market. Geopolitical tensions, natural disasters, and unforeseen global events, such as the COVID-19 pandemic, hold the potential to disrupt the complicated supply chains which are crucial for semiconductor production. These disruptions in the supply chain can result in the shortage of essential components. This limitation highlights the imperative need to develop flexible supply chain strategies within the industry. Additionally, proactive measures such as supplier diversification and strategic emergency preparation are essential for reducing the impact of supply chain interruptions. These efforts are vital for ensuring the steady expansion and stability of the automotive semiconductor market.
Automotive Semiconductor Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region will likely dominate the global automotive semiconductor market, establishing a substantial market presence. This dominance is due to the rapid expansion of the automotive industry in emerging countries such as China, India, and Japan, which is supported by active government initiatives that are aimed at promoting the growth of semiconductor sector. Furthermore, the surge in demand for electric vehicles, particularly in China, serves as a key driver for the market's continuous expansion. Moreover, the increasing adoption of commercial electric vehicles in nations like India, Japan, and South Korea is expected to contribute to the market growth.
Source: Fatpos Global
COVID-19 epidemic caused a huge disruption in the automotive semiconductor sector. Global supply chain challenges caused by lockdowns and staffing issues resulted in delays and shortages in semiconductor production. Moreover, economic uncertainty and low consumer spending resulted in low vehicle production, which impacted demand for semiconductor components. The shift in customer behavior toward remote work impacted the demand of automobiles and semiconductors. However, the epidemic boosted interest in electric vehicles, which resulted in the demand for certain EV-related semiconductor components. Thus, the supply-demand imbalance, along with growing demand in other industries, caused a spike in semiconductor costs, and had a major impact on the cost structure of manufacturing companies.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 10.2% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Component |
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By Vehicle Type |
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By Fuel Type |
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By Application |
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By Region |
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Automotive Semiconductor Market size was values at USD 61.4 billion in 2023 and is projected to reach the value of USD 179 billion in 2034, exhibiting a CAGR of 10.2% during the forecast period.
The Automotive Semiconductor Market involves the production and distribution of semiconductors tailored for use in vehicles. These semiconductors power electronic systems in automobiles, including control units, sensors, and connectivity features.
The Analog IC segment and the Telematics & Infotainment accounted for the largest Automotive Semiconductor Market share.
Key players in the Automotive Semiconductor Market include Intel Corporation, Qualcomm Technologies, Inc., NVIDIA Corporation, Texas Instruments Incorporated, NXP Semiconductors N.V., STMicroelectronics N.V., Infineon Technologies AG, Renesas Electronics Corporation, ON Semiconductor Corporation, Analog Devices, Inc., Microchip Technology Inc., ROHM Semiconductor, Cypress Semiconductor Corporation, Maxim Integrated, Samsung Electronics Co., Ltd.., and Other Prominent Players.
Rising popularity of electric vehicles (EVs) and innovations in self-driving technologies are the factors driving the automotive semiconductor market.
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