What Does the Historical and Current Automotive Semiconductor Market Size Trend Indicate?
The automotive semiconductor market has seen considerable growth due to a variety of factors.
• The expansion of the automobile semiconductor market has been swift and notable in recent years. It's projected to expand from $60.59 billion in 2024 to $67.42 billion in 2025, with a compound annual growth rate (CAGR) of 11.3%.
The surge during the historic period is due primarily to escalated demand for electric and hybrid vehicles, increased disposable income, and the rising incorporation of electronic components within the car industry.
What Is the Forecasted Market Size and Growth Rate for The Automotive Semiconductor Market?
The automotive semiconductor market is expected to maintain its strong growth trajectory in upcoming years.
• Experts are predicting a fast-paced expansion in the automotive semiconductor market in the coming years. The market value is estimated to reach $106.76 billion by 2029, with a compound annual growth rate (CAGR) of 12.2%.
Reasons for this projected growth include the rising popularity of self-driving vehicles, government efforts promoting automotive semiconductors, and increasing demands for passenger cars. Other notable future trends will likely include resistive ram technology (r-ram), product enhancements, technological advancements, strategic collaborations, and the creation of new products for automotive satellite camera modules.
What Are The Primary Growth Drivers In The Automotive Semiconductor Market?
The automotive semiconductor market is projected to grow due to the rising demand for electric and hybrid vehicles. Despite the economic impact of COVID-19 causing a slump in the demand for petrol and diesel cars, interest in electric vehicles (EVs) and hybrid cars has surged. Reasons behind this global transition to emission-free vehicles include worries about climate change and the objective of achieving net-zero emissions. By cutting down on fuel expenses and promoting a shift from petroleum products to vehicles powered by locally produced energy, this move towards EVs and hybrid vehicles is beneficial for the economy. For example, the International Energy Agency, a France-based intergovernmental organization, reported that in March 2023, the electric car market saw a steep rise in growth, with sales exceeding 10 million in 2022. The data also showed a significant upturn from 9% in 2021 to 14% of total new car sales by 2022, as the involvement of electric cars in the market rose considerably. As such, the growth in demand for electric and hybrid vehicles are predicted to positively impact the automotive semiconductor market during the projected period.
What Key Areas Define The Segmentation Of The Global Automotive Semiconductor Market?
The automotive semiconductor market covered in this report is segmented –
1) By Component: Processor, Analog IC, Discrete Power, Sensor, Memory, Other Components
2) By Vehicle Type: Passenger Vehicle, Light Commercial Vehicle, Medium And Heavy Commercial Vehicle
3) By Propulsion Type: Internal Combustion Engine, Electric, Hybrid
4) By Application: Powertrain, Safety, Body Electronics, Chassis, Telematics And Infotainment
Subsegments:
1) By Processor: Microcontrollers, Microprocessors
2) By Analog IC: Voltage Regulators, Operational Amplifiers
3) By Discrete Power: MOSFETs, IGBTs
4) By Sensor: Temperature Sensors, Pressure Sensors, Proximity Sensors
5) By Memory: RAM (Random Access Memory), Flash Memory
6) By Other Components: Communication ICs, Gate Drivers, Interface ICs
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How Are Emerging Trends Reshaping The Dynamics Of The Automotive Semiconductor Market?
Technological advancement is a significant trend surging in popularity within the automotive semiconductor industry. Major industry players are aiming to consolidate their market standing by offering highly advanced solutions. These companies are integrating emerging automotive semiconductor technologies like artificial intelligence, IoT, algorithmic chips, ICs, transistors, intelligent sensors, computing, and others into their offerings, ensuring their devices and applications are reliable, compact, and cost-effective. For example, SiFive, Inc., a semiconductor company based in the U.S., unveiled their E6-A series, S7-A, and X280-A in September 2022. These new chip designs cater to digital control in automobiles and leverage machine learning technology to amplify failsafe capabilities and facilitate autonomous driving.
Who Are the Key Players in the Automotive Semiconductor Market?
Major companies operating in the automotive semiconductor market include:
• Infineon Technologies AG
• STMicroelectronics N.V
• Texas Instruments Inc.
• Renesas Electronics Corp
• NXP Semiconductors N.V
• Robert Bosch GmbH
• Toshiba Corporation
• Micron Technology
• Analog Devices Inc.
• ROHM Co. Ltd.
• MosChip Semiconductor Technologies
• Enkris Semiconductor Inc
• Sanan Integrated Circuit
• Navitas Semiconductor
• Cypress Semiconductor Corp
• GigaDevice
• CR Micro
• Saankhya Labs
• ASM Technologies
• CDIL
• Hyundai Electric
• Mitsubishi Electric Corporation
• Meidensha
• Fuji Electric
• Nissin Electric
• Shihlin Electric
• CHEM
• Fortune Electric
• Silan
• GaN Systems
• Exagan
• UnitySC
• Dialog Semiconductor Plc.
What Is The Most Dominant Region In The Automotive Semiconductor Market?
Asia-Pacific was the largest region in the automotive semiconductor market in 2024, and it is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive semiconductor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
