Automotive Semiconductor Market Size & Share, by Propulsion Type (Electric, Internal Combustion Engine); Component (Analog IC, Processor, Discrete Power, Sensor, Memory); Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle); Application (Body Electronics, Chassis, Powertrain, Safety, Telematics & Infotainment) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4158
  • Published Date: Apr 21, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Automotive Semiconductor Market size is estimated to reach USD 115 billion by the end of 2035, growing at a CAGR of 10% during the forecast period, i.e., 2023-2035. The growth of the market can primarily be attributed to the rising use of innovative technologies in the automotive sector, along with the growing demand for automotive semiconductors worldwide. It is estimated that the average modern vehicle can have over 1,200 different semiconductor chips.

Today, most technologically advanced automobiles manufactured, use semiconductor devices for several critical functions such as power management, displays and control, sensing, and safety features of the vehicle. The critical charging infrastructure necessary to make electric vehicles viable is created by semiconductors in the form of power devices and solar cells. Automotive semiconductors have more applications in hybrid and electric vehicles (EVs), which are growing significantly, and are expected to create massive revenue generation opportunities for the key players operating in the global automotive semiconductor market during the forecast period. It was found that the global sales of electric cars in the first quarter of 2022, were ~2 million.


Automotive Semiconductor Market
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Automotive Semiconductors Market: Key Insights

Base Year

2022

Forecast Year

2023 - 2035

CAGR

~10%

Base Year Market Size (2022)

~ USD 40 billion

Forecast Year Market Size (2035)

~ USD 115 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Automotive Semiconductors Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Rising Installation Advanced Driver Assistance System (ADAS) - Semiconductors play a crucial role in a variety of functions in modern automobiles, including safety. Owing to several road accidents nowadays the demand for safety features in automobiles is rising. One of the most important safety features is an advanced driver assistance system that can detect paths on both sides of vehicles and can alert the driver about road conditions. The surge in the installation of the Advanced Driver Assistance Systems (ADAS) is expected to boost the automotive semiconductor market in the forecasted period. It was found that ADAS features were installed in ~10% of the 1 billion cars worldwide in 2020.
  • Increasing Research & Development (R&D) Expenditure – Growing research and development activities in the field of automotive semiconductor is anticipated to drive the market in the future times.  For instance, ~USD 136 billion was spent globally on R&D in the automotive sector in 2020.
  • Growing Semiconductor Manufacturing Industry – It was found that the complex manufacturing process of semiconductor chips was around USD 500 billion industry. The public is asking for more luxurious and comfortable vehicles for their transport around the globe. This led to the expansion of the semiconductor manufacturing industries. Semi-luxury and luxury cars solely depend on semiconductor technology owing to the manufacturing of semiconductors is rising.
  • Increasing Connectivity in Vehicles –In the coming years, most automobiles will be connected and 5G networks are going to be next-generation mobility solutions that will offer ample growth opportunities for the market.  It is estimated that between 2020 and 2025, there will be ~80 million new connected cars in the United States and 27% of new vehicles will have 5G by 2025.

Challenges

  • Shortage of Semiconductor Chips – The automobile industry currently problem in the shortage of semiconductor chips. As a result, to covid-19 pandemic, many countries implemented a full pandemic owing to which the supply of semiconductor chips was shortened. Though it’s been three years since the pandemic hit the world, the crisis is still on and there is a shortage of semiconductor chips. Without semiconductor chips, vehicles cannot be manufactured.
  • Need of Huge Capital Expenditure
  • Fluctuation in the Availability & Prices of Raw Material


Automotive Semiconductors Segmentation

Propulsion Type (Electric, Internal Combustion Engine)

The global automotive semiconductor market is segmented and analyzed for demand and supply by propulsion type into the electric and internal combustion engines. Amongst these segments, the electric segment is anticipated to garner the largest revenue by the end of 2035. Backed by the growing number of electric vehicles along with the surge in the demand for electric cars worldwide. Electric vehicles play a major role in cutting carbon commission and creating less pollution on the roads. This forces government authorities to bring EVs as they are beneficial for the environment.  For instance, it is projected that globally, 1 in 2 cars will have an electric powertrain by 2030. Last year more than 1 million electric cars were produced globally.

Application (Body Electronics, Chassis, Powertrain, Safety, Telematics & Infotainment)

The global automotive semiconductor market is segmented and analyzed for demand and supply by application into body electronics, chassis, powertrain, safety, telematics & infotainment. The body electronics segment held the largest market share in 2020 and it is estimated to do so in the forecast year. The leading companies in the automotive business are focusing on safety, convenience, and comfort over style and appearance. Moreover, government rules and strict laws are affecting the market by prioritizing client safety above all. After body electronics, the telematics and infotainment segment is anticipated to hold the highest market share in the forecast period. This can be attributed seeing the technological advancement in the field of cell phones, GPS, and the internet.

Our in-depth analysis of the global market includes the following segments:

     By Propulsion Type

  • Electric
  • Internal Combustion Engine

     By Component

  • Analog IC
  • Processor
  • Discrete Power
  • Sensor
  • Power

     By Vehicle Type

  • Passenger Vehicle
  • Light Commercial Vehicle
  •  Heavy Commercial Vehicle

     By Application

  • Body Electronics
  • Chassis
  • Powertrain
  • Safety
  • Telematics & Infotainment

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Automotive Semiconductors Industry - Regional Synopsis

APAC Market Statistics

Automotive semiconductor market in the Asia Pacific is projected to hold the largest revenue share by the end of 2035. Backed by the presence of the largest automobile manufacturing network in the region, growing demand for automobiles as well as the rising sale of vehicles. For instance, China sold more than 25 million vehicles in 2020, which included ~19,994,000 cars and about 5,231,000 commercial vehicles. Owing to the presence of emerging economies consisting of India, South Korea, China, and Indonesia, the automotive semiconductor market is growing. As the demand is increasing for luxurious and comfortable vehicles around the globe. Therefore, the leading automobile manufacturers are focusing on the production of semi-luxury and luxury vehicles that solely relies on automotive semiconductor technology. Increasing disposable income of people and growing demand for luxurious life are factors driving the growth of the automotive semiconductor market in the region. China from the Asia Pacific region held the largest share of the automotive semiconductor market. Owing to its fast advancement in cruise control, infotainment system, and other safety features.

Europe Market Forecast

On the other hand, the market in Europe is anticipated to share significant growth in the forecast period. This can be attributed to the growing demand for electric vehicles in the region. Currently, automobile manufacturers are aiming at creating, developing, and producing innovative automobile vehicles as they have attracted a set of key potential buyers in the automobile-producing regions. Shortly, automotive semiconductors will play a crucial role in the automobile industry. This can be attributed seeing the demand for technologically advanced and smart vehicles in the market.

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Automotive Semiconductor Market Size
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Companies Dominating the Automotive Semiconductors Landscape

top-features-companies
    • Infineon Technologies AG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • NXP Semiconductors N.V.
    • Robert Bosch GmbH
    • Analog Devices, Inc.
    • Micron Technology, Inc.
    • Semiconductor Components Industries, LLC
    • Renesas Electronics Corporation
    • Rohm Co., Ltd.
    • STMicroelectronics International N.V.
    • Texas Instruments Incorporated

In-the-news

In The News

  • NXP Semiconductors N.V. – announced expanded customer engagements for its entire S32 family automotive processors and microcontrollers to be used across the fleet of future vehicles of a major automotive OEM, beginning mid-decade.  
  • Infineon Technologies AG – announced the availability of the first samples of the country’s new AURIX TC4x family of 28 nm microcontrollers (MCUs) marking an extension in its microcontroller family.

Author Credits:  Harshita Srivastava, Saima Khursheed


  • Report ID: 4158
  • Published Date: Apr 21, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Upsurge in the number of semiconductor chips in modern vehicles, as well as an increasing number of connected vehicles along with the rising sale of EVs, are some of the major factors anticipated to drive the growth of the automotive semiconductors market.

The market is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2023-2035.

Shortages of semiconductors as well as fluctuating prices & availability of raw materials are some of the factors estimated to hamper the market growth.

The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future

The major players in the market are Analog Devices, Inc., Infineon Technologies AG, NXP Semiconductors N.V., Micron Technology, Inc., Robert Bosch GmbH, and others

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by propulsion, type, component, vehicle type, application, and by region.

The electric segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Automotive Semiconductor Market Report Scope
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