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Automotive Semiconductor Market - Global Outlook and Forecast 2018-2023

SKU : ARZ181004
  • Published on : October 2018

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This market research report on the global automotive semiconductor market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by product (processor, analog IC, sensor, discrete power, and memory), by application (body electronics, telematics, powertrain, safety, and chassis), by vehicle type (passenger cars, light commercial vehicles, and heavy commercial vehicles), and by geography (APAC, Europe, North America, Latin America, and MEA).

Global Automotive Semiconductor Market 2023

Key highlights of automotive semiconductor market:

  • The major growth driver of the global automotive semiconductor market is the surge in demand for processors.
  • Increasing demand for body electronics, safety concerns and reduction in emissions are propelling the growth of global Automotive semiconductor market during the forecast period.
  • The high sales growth in the automotive semiconductor market is possible because of the constant product development in the automotive market, increasing adoption of electronics in passenger cars, and launching of 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.

Automotive Semiconductor Market - Overview

The emergence of new technologies in the automotive industry, rapid developments in emerging region, adoption of sustainable policies, and changing consumer preferences are propelling the growth of the global automotive semiconductor market. 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 in the global automotive semiconductor market. 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 automotive electronics and software that controls the systems will contribute to the revenues in the global automotive semiconductor market.

The increasing use of automotive 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 system, connected systems, and drive-by-wire technologies will positively impact the market. The global automotive semiconductor market is estimated to generate revenues of around $52 billion by 2023, growing at a CAGR of approximately 7% during 2017-2023.

Global Automotive Semiconductor Market 2023

 

Automotive Semiconductor Market - Dynamics

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 automotive companies such as Audi, Ford, Continental, Bosch, and Delphi are the leaders in the autonomous space in the global market. Moreover, non-automotive companies such as Google and Apple are investing in autonomous vehicles by leveraging their expertise in communications. The government regulatory bodies such as NHTSA are also expected to drive collaboration between automobile and electronics industry by introducing directives in the automotive industry. 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 the sales in the global automotive semiconductor market.

Automotive Semiconductor Market - Segmentation

This market research report includes a detailed segmentation of the  automotive semiconductor market by product, application, vehicle type, and geography.

Global Automotive Semiconductor Market Segmentation Image

 

Automotive Semiconductor Market – By Product

Adoption of electric vehicles to drive the demand for processors in the global automotive semiconductor market

The global automotive semiconductor market by products is categorized into the processor, analog IC, sensor, discrete power, and automotive memory. 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 in understanding 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 market.

Automotive Semiconductor Market – By Application

Body electronics help improve safety and comfort in next-generation vehicles in the global automotive semiconductor market

The application segment in the global automotive semiconductor market is divided into body electronics, telematics, powertrain, safety, and chassis. Body electronics occupied the largest market share in 2017, growing at a CAGR of around 4% during the forecast period. The increasing demand for computing & networking performance in vehicles is fueling the electronics complexity and safety concerns in the global market. 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 battery 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 is propelling 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.

Automotive Semiconductor Market – By Vehicle Type

Adoption of safety technologies in passenger cars will transform the global automotive semiconductor market

The global automotive semiconductor market by vehicle type is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment dominated more than 2/3rdof the market share in 2017, growing at a CAGR of around 6% during the forecast period. The rapid electrification of vehicle systems in  the automotive industry, increasing use of electronics, and the implementation of stringent safety norms are some of the 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 technologies will revolutionize the global automotive semiconductor market. The automotive 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 system, 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 in the global market.

Automotive Semiconductor Market – By Geography

A surge in automotive production in APAC will contribute to the sales in the global automotive semiconductor market

The geographical segment in the global automotive semiconductor market is classified into APAC, Europe, North America, Latin America, and MEA. APAC occupied the largest market share in 2017, growing a CAGR of approximately 7% during the forecast period. The increasing demand and sales of SUVs are propelling the growth of the automotive semiconductor market in the APAC region. China, Japan, India, and South Korea are the largest revenue generators in the APAC market. A surge in automotive production in APAC owing to low operational costs and the growing global passenger vehicle demand will boost the revenues in the global automotive semiconductor market. Companies such as Toyota, Honda, Suzuki, and Nissan are also contributing to domestic sales and an increase in exports in the APAC market. The favorable economic environment, availability of financing options, and established presence of global OEMs will attribute 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 are contributing to the maximum revenues in these regions in the global market. 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 Countries Profiled are:

  • China
  • Japan
  • India
  • South Korea
  • Germany
  • Spain
  • UK
  • US
  • Mexico
  • Canada
  • Brazil

Key Vendor Analysis

The global automotive semiconductor market 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 automotive industry 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 market. The increasing focus on technological innovations and diversifying product portfolio will encourage companies to invest in different regions 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 major vendors in the global automotive semiconductor market are:

  • NXP Semiconductors
  • Infineon Technologies
  • Renesas Electronics
  • Texas Instruments

Other prominent vendors in the global automotive semiconductor market include STMicroelectronics, Bosch, Melexis, Allegro MicroSystems, Microchip Technology, ON Semiconductor, ROHM Semiconductor, Analog Devices, Delphi Technologies, Panasonic Corporation, and Toshiba Corporation.

Key market insights include

  1. The analysis of the global automotive semiconductor market provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the global automotive semiconductor market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of the global automotive semiconductor market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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