The global automotive semiconductor market size will reach USD 51 billion by 2023, growing at a CAGR of 6% during 2018-2023. The emergence of new technologies, rapid developments in the emerging region, adopting sustainable policies, and changing consumer preferences are propelling the global automotive semiconductor market growth. Semiconductors form the backbone of next-generation automotive technology. The increasing efforts to promote digitalization and rapid changes in business models are driving the need for innovative systems and car components. The growing demand for electrification, diverse mobility, autonomous driving, and rapidly evolving connectivity services will create new avenues for leading OEMs in the global automotive market over the next few years. The top manufacturers are increasing investments in green, sustainable, and connected technologies to sustain the competition in the global automotive semiconductor market. The incorporation of stringent government mandates to restrict emission and improvement of passenger safety will lead to the widespread adoption of automotive safety electronics. Companies such as NXP Semiconductors, Infineon Technologies, Renesas Electronics, Texas Instruments, and STMicroelectronics are introducing innovative products. The advancements in sensor technology used in ADAS, such as LiDAR, radar, ultrasonic, and camera, are expected to reduce the overall cost of ADAS during the forecast period. The rising demand for superior quality electric vehicles (EVs) is fueling the transformation of the automotive industry. The increasing advancement of electronics and software that controls the systems will contribute to the global automotive semiconductor market revenues.
The increasing use of electronics such as powerful microcontrollers, switches, and sensors will revolutionize the engine management and transmission control systems. The growing use of electronics such as collision avoidance systems, automotive infotainment systems, connected systems, and drive-by-wire technologies will positively impact the industry.
- The major driver of the global automotive semiconductor market growth is the surge in demand for processors.
- The high growth in the automotive semiconductor market sales is possible because of the constant product development, increasing adoption of electronics in passenger cars, and launching new features.
- Automotive manufacturers have moved to the next generation of connected car technology, such as telematics, voice recognition, eCall, and vehicle-to-vehicle communication, among others.
- Due to increasing autonomous vehicles, the automotive semiconductor manufacturers will witness a growing demand for electronic systems for cybersecurity in vehicles.
The increasing adoption of autonomous vehicles is fueling the growth of the global automotive semiconductor market. The gradual shift to new car ownership models such as cab services, carpooling, and car rentals due to factors such as traffic bottlenecks in urban cities will encourage the OEMs to focus on technologies that promote driverless, autonomous vehicle concept. Various OEMs and Tier-1 suppliers are investing in projects to commercialize this concept of autonomous vehicles. Top companies such as Audi, Ford, Continental, Bosch, and Delphi are the leaders in the independent space in the global market. Moreover, companies such as Google and Apple are investing in autonomous vehicles by leveraging their expertise in communications. Government regulatory bodies such as NHTSA are also expected to drive collaboration between the automobile and electronics industry by introducing directives. Also, the growing demand for electronic systems for cybersecurity in vehicles will augment the evolution of the global industry over the next few years. These development efforts will attribute to higher sales.
AUTOMOTIVE SEMICONDUCTOR MARKET SEGMENTATION
This research report includes a detailed segmentation by product, application, vehicle type, and geography.
INSIGHTS BY PRODUCT
The global automotive semiconductor market share by products is categorized into the processor, analog IC, sensor, discrete power, and automotive memory. The processor segment dominated more than 1/3rd of the market share in 2017, growing at a CAGR of more than 7% during the forecast period. The increasing use of processors to perform specific tasks where the relationship of input and output is defined is propelling the growth of the global automotive semiconductor market. The different types of processors available in the market include microprocessor units, microcontroller units (MCUs), and digital signal processors (DSP). Digital signal processors take real-world signals such as voice, audio, video, temperature, pressure, or position that is digitized and then manipulate them mathematically. These systems offer analysis that helps understand the performance and other such metrics in a vehicle in the global automotive semiconductor market.
The growing demands of advanced systems and low-budget applications are fueling the growth of the analog integrated circuit (IC) segment in the global market. The increasing adoption of sensors such as lane departure system, night vision, front object CCD camera, front airbag sensor, ASCD, night-time pedestrian warning, and drowsiness sensors will drive demand in the global automotive semiconductor industry.
INSIGHTS BY APPLICATION
The application segment is divided into body electronics, telematics, powertrain, safety, and chassis. Body electronics occupied the largest share in 2017, growing at a CAGR of around 4% during the forecast period. The increasing demand for computing & networking performance in vehicles fuel the electronics complexity and safety concerns globally. Advancements in body electronics have helped in making new generation vehicles safer and more comfortable for drivers. The introduction of solutions that use efficient power management systems to minimize load on vehicle batteries will boost demand in this segment. Some of the primary components body electronics in the global automotive semiconductor market are the remote keyless entry, the electronic battery sensor, electronic immobilizer, central in-vehicle communication node, dc/dc converters for start/stop systems, and body computer module.
Telematics helps transmit, store, and receive information from telecommunications devices to remote objects over a network. The increasing adoption of gasoline direct-inject systems instead of multi-port fuel injection systems propels the demand for the powertrain. Chassis systems support steering and suspension knuckles, engine cradles and mounts, axle housings and covers, driveline components, and transmission mounts, augmenting the growth of the automotive semiconductor market.
INSIGHTS BY VEHICLE TYPE
The passenger car segment dominated more than 2/3rdof the share in 2017, growing at a CAGR of around 6% during the forecast period. The rapid electrification of vehicle systems, increasing use of electronics, and the implementation of stringent safety norms are factors attributing the growth of this segment. The growing adoption of safety technologies will drive the demand for passenger cars. The development of next-generation electronics sensors in sync with ADAS automotive semiconductor technology will revolutionize the industry. Technology like electronic stability control (ESC), tire pressure monitoring systems (TPMS), driver seat belt indicators, and gear shift indicators are made mandatory for new passenger cars, light trucks, and heavy commercial vehicles in Europe by the European General Safety Regulation (EC).
The inclusion of powertrain and chassis system, body electronics, safety and security systems, telematics, and infotainment in light trucks and heavy commercial vehicles will boost the demand in the global automotive semiconductor market. Also, the emergence of connected and autonomous cars will increase the demand for electronic components worldwide.
INSIGHTS BY GEOGRAPHY
APAC occupied the largest share in 2017, growing a CAGR of approximately 7% during the forecast period. The increasing demand and sales of SUVs are propelling the automotive semiconductor market share in the APAC region. China, Japan, India, and South Korea are the largest revenue generators in the APAC region. A surge in vehicle production in APAC owing to low operational costs and the growing global passenger vehicle demand will boost the revenues in the global automotive semiconductor industry. Companies such as Toyota, Honda, Suzuki, and Nissan contribute to domestic sales and an increase in exports in the APAC region. The favorable economic environment, availability of financing options, and established presence of global OEMs will contribute to the development of the APAC region over the next few years.
Germany, Spain, and the UK in Europe and the US, Mexico, and Canada in North America contribute to the maximum revenue share. The pro-market reforms and the government’s efforts to attract foreign investments across Latin America will create lucrative opportunities for global players in the automotive semiconductor market.
KEY VENDOR ANALYSIS
The global industry is witnessing an ever-changing competitive dynamics and intensity of competition. The presence of highly productive domestic manufacturers and growing exports will create new investment opportunities for players in the emerging regions. The global and domestic players such as NXP Semiconductors and Texas Instruments are controlling most of the competition in the North American region. The increasing focus on technological innovations and diversifying product portfolio will encourage companies to invest in different areas across the globe. The increasing number of imports, exports, domestic consumption, and growing disposable income will boost the demand in the global automotive semiconductor market.
The global automotive semiconductor market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by Product
- Analog IC
- Discrete Power
- Body Electronics
By Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- South Korea
- North America
- Latin America
- Middle East & Africa