What Has Been the Growth of the System Basis Chip Market So Far?
The system basis chip market has seen considerable growth due to a variety of factors.
• The system basis chip market has shown strong growth in recent years. It will grow from $27.01 billion in 2024 to $29.79 billion in 2025, with a CAGR of 10.3%.
Factors driving this growth include the expansion of the automotive sector, growing demand for integrated communication systems, an emphasis on safety features, increasing adoption of fleet management solutions, and greater attention to cybersecurity.
What Is the Forecasted Market Size and Growth Rate for The System Basis Chip Market Size In The Coming Years?
The system basis chip market is expected to maintain its strong growth trajectory in upcoming years.
• The system basis chip market is projected to grow strongly, reaching $43.49 billion by 2029 at a CAGR of 9.9%.
This growth is driven by the increasing demand for electric vehicles, the expansion of 5G connectivity, rising disposable incomes, the integration of IoT devices, and growing demand for advanced safety. Trends include the rising demand for automotive electronics, advancements in semiconductor technology, the integration of AI and IoT in devices, the expansion of 5G networks, and a focus on energy-efficient solutions.
What Factors Are Driving Growth In The System Basis Chip Market?
The surge in uptake of electric vehicles is projected to spur the development of the system-basis chip market in the future. Electric vehicles, which are cars driven by electric motors and powered by rechargeable batteries or other energy storage systems, as opposed to the traditional internal combustion engines fueled by gasoline or diesel, are being increasingly adopted. This is attributed to a number of factors such as environmental considerations, increased charging facilities, and government incentives. Utilizing system basis chips in electric cars enhances efficiency, reduces power consumption, and facilitates cutting-edge services like battery management and vehicle-to-grid communication by taking care of power distribution and communication. For example, the International Energy Agency, an independent intergovernmental organization based in France, reported in July 2023 that over 2.3 million electric cars were sold in the first quarter of that year, marking a 25% rise from the preceding year. Furthermore, it's projected that by the close of 2023, sales would hit 14 million, indicating a 35% annual growth, with growth gathering pace during the second half of the year. Hence, the escalating adoption of electric vehicles is propelling the expansion of the system-basis chip market.
What Are The Main Segments Of The Global System Basis Chip Market?
The system basis chip market covered in this report is segmented –
1) By Vehicle Type: Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Automated Guided Vehicles (AGVs), Autonomous Vehicles
2) By Functionality: Voltage Regulation, Diagnostic And Supervision, Drivers And Switches, Watch Dog Functions, Wake Up Logic, Power Switches, Other Functionalities
3) By Transmission Rate: 2 Megabits Per Second (MBitps), 5 Megabits Per Second (MBitps), Other Transmission Rates
4) By Current: 150 Milliampere (mA), 250 Milliampere (mA), 500 Milliampere (mA)
5) By Application: Powertrain, Safety, Body Electronics, Chassis, Telematics And Infotainment, Other Applications
Subsegments:
1) By Passenger Cars: Electric Passenger Cars, Internal Combustion Engine (ICE) Passenger Cars, Hybrid Passenger Cars
2) By Light Commercial Vehicles (LCVs): Pickup Trucks, Vans, Minivans
3) By Heavy Commercial Vehicles (HCVs): Trucks, Buses, Trailers
4) By Automated Guided Vehicles (AGVs): Automated Forklifts, Automated Tow Trucks, Automated Material Handling Vehicles
5) By Autonomous Vehicles: Fully Autonomous Passenger Vehicles, Autonomous Delivery Vehicles, Autonomous Shuttles Or Transport Vehicles
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How Are Emerging Trends Reshaping The Dynamics Of The System Basis Chip Market?
Leading corporations in the system-basis chip market are concentrating on producing automotive safety mini-controller area network flexible data-rate system basis chip (CAN FD SBC) devices to boost the dependability of vehicle communication and provide solid safety and diagnostic features in contemporary automotive systems. Mini CAN FD SBC devices are distinct integrated circuits crafted for vehicle communication safety functions. They manage and allocate power to the different elements of the car's electrical systems. For example, NXP Semiconductors, a semiconductor manufacturing firm based in the Netherlands, unveiled the FS24 SBC in June 2024. This device has been created to provide high reliability in applications that demand safety. It includes a battery-connected switched-mode regulator capable of delivering up to 400 mA, and a linear regulator that can supply up to 150 mA. As such, it can efficiently support a broad array of microcontrollers and communication devices. Additionally, the CAN-FD interface allows for rapid data transfer, making it integral to car communication systems. The FS24 SBC chip is designed for minimal power use, with advanced configurations consuming less than 40 µA, making it perfect for devices that run on battery. The FS24 SBC can support applications like digital key functionality, proximity detection for children, and kick-sensing for accessing the trunk, thereby enhancing user convenience and safety.
Who Are the Key Players In The System Basis Chip Market?
Major companies operating in the system basis chip market are:
• Robert Bosch GmbH
• Qualcomm Technologies Inc.
• Broadcom Inc.
• Micron Technology Inc.
• Toshiba Corporation
• NVIDIA Corporation
• Avnet Inc.
• Texas Instruments Incorporated
• STMicroelectronics
• Infineon Technologies AG
• NXP Semiconductors
• Analog Devices Inc.
• Renesas Electronics Corporation
• Onsemi
• Microchip Technology Inc.
• Marvell
• Ams AG
• ROHM CO. LTD.
• Xilinx Inc.
• Diodes Incorporated
• Elmos Semiconductor SE
What Is The Most Dominant Region In The System Basis Chip Market?
North America was the largest region in the system basis chip market in 2023. The regions covered in the system basis chip market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
