Automotive Semiconductor Market By Components (Processors, Sensors, Analog IC, Integrated Circuits, Discrete Power Device, and Others), Application (Telematics & Infotainment, Chassis, Power Electronics, Safety, Body Electronics, and Others), and Vehicles (Passenger & LCV and HCV), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032

Market Perspective

The global Automotive Semiconductor Market size was worth around USD 44.36 billion in 2022 and is predicted to grow around USD 96.49 billion by 2032 with a compound annual growth rate of roughly 8.08% between 2023 and 2032.

The rapid acceptance of electric and hybrid vehicles bodes well for the future of the sector. In addition, as autonomous driving technology advances to improve safety, leading businesses will be encouraged to invest in semiconductors, which will accelerate the market's total growth. For instance, it was discovered that the semiconductor chip manufacturing business involved a complex manufacturing process that reached USD 500 billion.  

The majority of technologically modern cars on the road today use semiconductor devices for a number of vital operations, including power management, display and control, sensing, and safety features. Semiconductors in the form of power devices and solar cells build the vital charging infrastructure required to make electric vehicles commercially viable. Automotive semiconductors are used in a greater number of hybrid and electric vehicles (EVs), which are expanding significantly.

As a result, during the forecast period, major revenue generation opportunities are anticipated for the key players operating in the global automotive semiconductor market. It was discovered that 2 million electric automobiles were sold globally in the first quarter of 2022.

A semiconductor is employed in the automobile sector to manage the operations of the electrical control unit, operate the fail-safe system, and develop fault-tolerant automotive systems. These systems are in charge of managing vehicle errors and communicating this data to the microcontrollers and safety systems. As a result, semiconductors play a crucial role in the automotive industry, and the projection expects the industry's rapid growth to be a major factor in the market's growth over the duration of the forecast.

Key Insights

• Based on components, the analog IC segment held the largest market share
• Based on application, the telematics & infotainment segment dominated the market
• Based on vehicles, the passenger segment generated the highest revenue
• On the basis of region, North America accounted largest market share

Growing Trend Towards Using Electric and Hybrid Vehicles to Cut Down on Automobile Emissions

The key option for alternative methods of powering an engine without petroleum is non-fossil-fueled cars, including hybrid electric vehicles, solar-powered, and electric vehicles, and automobiles. The adoption of electric and hybrid vehicles will rise, which will lower consumer fuel costs, reduce greenhouse gas emissions (GHGS), improve air quality in cities, and lessen reliance on fossil fuels. New automotive ICs, microprocessors, and sensors will become significantly more popular as electrified vehicles become more common.

Electric van adoption also grew, rising from 2.1% of all new registrations in 2020 to 3.1% in 2021. In 2021, the number of plug-in hybrid and battery electric cars was comparable, but battery electric vehicles made up the bulk of registrations for electric vans.

As a result, the scope of electrification has expanded with the incorporation of new features and modern technology in automobiles. Original equipment producers (OEMs) are therefore adding more ICs, microprocessors, and sensors to high-end electric vehicles.

Threats to Safety and Security from Autonomous Cars

Autonomous vehicles have gained popularity recently. There have been numerous deadly accidents involving Level 3 to Level 5 autonomous vehicles with little to no human involvement. Also, a paper from the Joint Research Centre (JRC) and the EU Agency for Cybersecurity (ENISA) found that autonomous vehicles pose significant cybersecurity concerns. According to the paper, autonomous vehicles are vulnerable to adversarial machine learning strategies like poisoning or evasion attempts. This threat model involves tricking facial recognition and pattern recognition software.

Attackers using evasion techniques manipulate the data given to the systems in order to change the results to their advantage. Similar to poisoning assaults, malfunctions brought on by training are advantageous to the attacker. As an illustration, a disguised speed limit sign was used to fool autonomous Tesla vehicles that operate using autonomous driving to accelerate from 35 to 85 mph. Manufacturers anticipate expanding the use of sophisticated sensors in autonomous vehicles, including microprocessors, integrated circuits (ICs), radar, LIDAR, and image sensors. The reliability, security, and accuracy of these sensors must be prioritized by OEMs and integrators. The security-by-design methodologies should also be used by manufacturers to ensure road safety.

Recent Development

In September 2021: Infineon Technologies increased its capacity to provide power semiconductors for data centers, automobiles, and renewable energy generation as it increased its presence in Austria.

February 2021- A well-known manufacturer of semiconductors, ON Semiconductor, recently introduced a new line of Silicon Carbide MOSFET devices. This new range is better suited for applications involving electric vehicles where dependability and efficiency are crucial considerations.

Segmentation Analysis

Based on components, the market is categorized into processors, sensors, analog IC, integrated circuits, discrete power devices, and others. The analog IC dominated the market. The main distinctions between rival automakers are automobiles and electronics. Automotive electronics often consist of miles of cable harnesses, numerous network systems, dozens of electronic control units (ECUs), and hundreds of sensors per car. All of these processors, power supplies, sensors, and other electronic parts of the car need the help of analog integrated circuits (ICs) to function and send control signals and instructions from one system to another.

In addition to creating a considerable need for power devices, the growing electrification of the powertrain industry also presents an opportunity for analog ICs to enable significant future growth. We also analyzed the market for logic ICs and connecting devices in the report's part on analog ICs. Interfaces, amplifiers, converters, comparators, logic ICs, ASSP, ASIC, regulators, drivers, telematics, connection, and infotainment devices are the main analog ICs used in a car.

On the basis of the application, the market is categorized into telematics & infotainment, chassis, power electronics, safety, body electronics, and Others. Based on applications, the automotive semiconductor industry was dominated by telematics and infotainment. The development of telematics and infotainment applications is due to the development of smartphones, the internet, and GPS receivers. Demand for systems like location tracking, work dispatch, and vehicle diagnostics, among others, has surged due to high accuracy requirements.

Modern automobiles include telematics and infotainment systems with a variety of functions. They are connected to one another as well as to several other systems, including GPS and entertainment systems. The same internal networks also accommodate user peripherals, including USB devices, cell phones, and short-range wireless gadgets. Moreover, the telecommunications interfaces can be used for remote vehicle monitoring, software reprogramming, system diagnostics, and control of some vehicle systems via links with other devices.

By vehicles, the market is categorized into Passenger & LCV, and HCV. The passenger segment is expected to witness substantial growth during the forecast period. The largest segment in terms of both worldwide production and demand is passenger cars. Sedans, station wagons, hatchbacks, vans, MUVS, and SUVs are all classified as passenger cars. As the largest sector of the automotive industry, passenger cars continue to be predominately powered by gasoline engines worldwide, making this the most prospective market for automotive semiconductors. Compared to the rest of the globe, China has a greater demand for passenger cars with electric motors.

Electric and hybrid cars have more semiconductors than regular passenger cars. The powertrain is where semiconductors are used most frequently in modern automobiles. The main opportunity for automotive semiconductor makers is the rising demand for electric and hybrid vehicles as a result of increased environmental concerns.

North America is Dominating the Market Share Due to the High Presence of Key Auto-Producers

The automotive semiconductor industry is anticipated to grow rapidly in North America, which will also account for the largest portion of the global market during the forecast period. The US, Canada, and Mexico are three of the largest auto-producing nations in the region. Major automakers, including Toyota Motor Corporation, General Motors, Chevrolet Motor, and Ford Motor Company, are all based in the US.

Asia Pacific is the Fastest Growing Market Due to Increasing Demand for Automobiles in Developing Economy

The automobile industry is projected to grow at the fastest CAGR due to rapid economic developments in developing countries like China and India. China dominated the regional market in 2021 and is expected to continue keeping its dominance during the forecasted period. Furthermore, it is anticipated that in the coming years, the region's growing e-commerce industry to drive demand for commercial vehicles in logisitics applications. 

Competitive Landscape

• Arrow Electronics, Inc.
• INFINEON TECHNOLOGIES AG
• Micron Technology, Inc.
• Texas Instruments Incorporated
• STMicroelectronics
• Semiconductor Components Industries, LLC
• Rochester Electronics
• Renesas Electronics Corporation
• TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION
• ANALOG DEVICES, INC.

The global automotive semiconductor market is segmented as follows:

By Components

• Processors
• Sensors
• Analog IC
• Integrated Circuits
• Discrete Power Device
• Others

By Application

• Telematics & Infotainment
• Chassis
• Power Electronics
• Safety
• Body Electronics
• Others

By Vehicles

• Passenger
• LCV and HCV

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America