Automotive Semiconductor Market Expected to Reach $113.94 Billion by 2030-Allied Market Research

According to a recent report published by Allied Market Research, titled, “Automotive Semiconductor Market by Component, Vehicle Type, Propulsion Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global automotive semiconductor was valued at $37.99 billion in 2020, and is projected to reach $113.94 billion by 2030, registering a CAGR of 11.8% from 2021 to 2030.

North America dominates the market in terms of revenue, followed by Europe, Asia-Pacific, and LAMEA. U.S. garnered the highest share in 2020. However, Mexico is expected to grow at a significant rate during the forecast period, due to increase in production of vehicles equipped with advanced features such as ADAS, telematics and in-car infotainment.

Automotive semiconductors are specially designed components that are used in numerous automotive electronic components and are designated for efficient performance of the associated component. Semiconductors used in automobiles are used to transfer electricity through them so that the semiconductor associated component performs its operations without any failure. In addition, continuous developments carried out by the key players operating in the automotive industry have introduced components related to advanced driver assistance system, telematics and others, creates ample opportunities for the growth of automotive semiconductor market during the forecast period.

Moreover, the key players operating in the global automotive semiconductor market has developed numerous components to be used in automobiles which leads to the growth of their market share in the global market. In addition, continuous developments towards the introduction of semi-autonomous & autonomous vehicles and electric propelled vehicles has also supplemented the growth of automotive semiconductors among vehicles.

In addition, numerous developments have been carried out by key manufacturers such as Analog Devices, Infineon Technologies, NXP Semiconductors, Texas Instruments and others creates a wider scope for the growth of the market across the globe. For instance, in June 2021, Analog Devices collaborated with Keysight for development of O-RAN Solution. O-RAN is a family of wireless chips that are used in conjunction with Wi-Fi and cellular networks. They are used in public transports such as buses and train stations. Similarly, in October 2021, Infineon technologies launched high precision coreless XENSIVTM TLE4972 sensor for automotive application. It is first automotive sensor launch by Infineon technologies. XENSIVTM TLE4972 sensor has a compact design that uses Infineon hall technology for stable and precise current measurement. XENSIVTM TLE4972 sensor is used in hybrid and battery driven vehicles like traction inverter. Such developments carried out by the key manufacturer supplements the growth of the market across the globe.

The global automotive semiconductor market has been segmented on the basis of component, vehicle type, propulsion type, application and region. Based on the component, the global market has been segmented into processor, analog IC, discrete power, sensor and memory. Based on vehicle type, the global automotive semiconductor market has been segmented into passenger car, light commercial vehicle and heavy commercial vehicle. Based on propulsion type, the global automotive semiconductor market has been segmented into internal combustion engine and electric. Based on application, the global automotive semiconductor market has been segmented into powertrain, safety, body electronics, chassis, telematics & infotainment and others. By region, the global market has been studied across North America, Europe, Asia-Pacific and LAMEA. 

Factors such as rapid developments in the automotive industry, rise in demand for safety features in automobiles and intervention of innovative technologies for advanced user interface (UI) drives the growth of the market across the globe. In addition, factors such as operational failures in extreme climatic conditions and high initial cost & complex structure acts as a barrier for the growth of the market across the globe. However, factors such as rise in demand for electric & hybrid vehicles and increase in technological advancement & innovation in ADAS creates ample opportunities for the growth of the market during the forecast period.

Key Findings Of The Study

• By component, the sensor segment is expected to register a significant growth during the forecast period.
• Depending on vehicle type, the light commercial vehicle segment is anticipated to exhibit significant growth in the near future.
• On the basis of propulsion type, the electric segment is projected to lead the global automotive semiconductor market owing to higher CAGR.
• On the basis of application, the telematics & infotainment segment is projected to lead the global automotive semiconductor market owing to higher CAGR.
• Asia-Pacific is anticipated to register the highest CAGR.

Covid-19 Impact Analysis

• COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge.
• Lockdown measures have helped contain the spread of coronavirus, but exacted an immense economic toll.
• Rapid spread of the disease has led to a significant impact on the global transportation industry, with a downturn in need for using public transports.
• Moreover, countries, such as China, Norway, the Netherlands, and others, which were the leaders in automobile industry have registered a decrease in vehicle sales during the pandemic.
• Industry experts believe that post the pandemic, the demand for personal mobility will increase owing to the need to avoid public transportation as well as human interaction.
• By the end of 2020, the situation was under control in some countries, due to which the demand & supply gap was fulfilled and there was significant growth in the product development, which have a wider application in developed vehicles.

The key players analyzed in this automotive semiconductor market report are Analog Devices, Inc., Infineon Technologies AG, Micron Technology, NXP Semiconductors N.V., On Semiconductor Corp., Renesas Electronics Corp., Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics N.V. and Texas Instruments, Inc.