A semiconductor is a type of material, such as germanium or silicon, that exhibits electrical conductivity characteristics falling between those of conductors (like metals) and insulators. Its conductivity is close to that of metals at high temperatures and nearly non-existent at low temperatures. This property makes semiconductors crucial in automotive electronic devices and technology. In vehicles, semiconductors are used in multiple important functions such as power management, safety features, vehicle control, displays, and sensing in modern technologically advanced automobiles. More semiconductors are being used in electric and hybrid vehicles (EVs).
The automotive semiconductor market has witnessed significant growth over the years, owing to introduction of advanced features such as telematics, infotainment as well as advanced driver assistance system in new vehicles.
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, memory and others. 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.
Moreover, global semiconductor companies invested in Germany for manufacturing units. For instance, in 2023, Infineon Technologies AG, a global semiconductor company, started construction on a new chip manufacturing plant in Dresden, Germany with investment of $5.40 billion (EUR 5 billion). Manufacturing is set to start in the fall of 2026, generating around 1,000 highly qualified jobs. It will expand manufacturing of automotive components such as small automotive motor control units.
In addition, the UK intends to become a hub for the production of electric vehicles, the development of related technologies. The UK drew investments from automakers. For instance, in July 2023, Tata Group unveiled plans to construct a $5 billion gigafactory in the UK, with production set to commence in 2026. The Tata Group is projected to support UK's ambitions to ensure a domestic supply of electric vehicle (EV) batteries. The development is expected to generate around 4,000 direct jobs, which benefit both the local economy and Jaguar Land Rover, a subsidiary of Tata Motors, by providing a reliable source of batteries. Increased in penetration of EVs in the UK further boost the requirement for advanced semiconductor solutions, which in turn support the growth of automotive semiconductor market.
Moreover, The EV combines batteries and electronic features with the engine for efficient power provided to the vehicles. Thus, development of power devices for electric powertrain is increased significantly in recent years. For instance, in December 2023, ROHM Semiconductor and Shenzhen BASiC Semiconductor collaborated to enhance the performance of silicon carbide (SiC) power devices, particularly for cost-effective solutions in electric vehicle (EV) powertrains. Through this collaboration, the strengths of both companies will be harnessed to develop onboard power modules for EVs, focusing on advancing SiC technology in this domain. The penetration of smart infrastructure has increased the demand for EV infrastructure, which increases the demand for electric vehicles, influencing the market growth.
In addition, the key factors such as increased development in automotive industry along with the increased demand for safety features in automobiles and the introduction of electric & hybrid vehicles across the globe supplements the growth of the market across the globe.
The automotive semiconductor market has been segmented on the basis of component, vehicle type, propulsion type, application, and region. By component, the global market has been segmented into processor, analog IC, discrete power, sensor, memory, and others. By vehicle type, the global automotive semiconductor market has been segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. By propulsion type, the global automotive semiconductor market has been segmented into internal combustion engine and electric. By application, the global automotive semiconductor market has been segmented into powertrain, safety, body electronics, chassis, and telematics & infotainment. By region, the market has been studied across North America, Europe, Asia-Pacific and LAMEA.
Key players profiled in the report include Analog Devices, Inc., Infineon Technologies AG, Micron Technology, NXP Semiconductors, Semiconductor Components Industries, LLC, Renesas Electronics Corporation, Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics and Texas Instruments Incorporated.
The automotive semiconductor market has witnessed significant growth over the years, owing to introduction of advanced features such as telematics, infotainment as well as advanced driver assistance system in new vehicles.
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, memory and others. 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.
Moreover, global semiconductor companies invested in Germany for manufacturing units. For instance, in 2023, Infineon Technologies AG, a global semiconductor company, started construction on a new chip manufacturing plant in Dresden, Germany with investment of $5.40 billion (EUR 5 billion). Manufacturing is set to start in the fall of 2026, generating around 1,000 highly qualified jobs. It will expand manufacturing of automotive components such as small automotive motor control units.
In addition, the UK intends to become a hub for the production of electric vehicles, the development of related technologies. The UK drew investments from automakers. For instance, in July 2023, Tata Group unveiled plans to construct a $5 billion gigafactory in the UK, with production set to commence in 2026. The Tata Group is projected to support UK's ambitions to ensure a domestic supply of electric vehicle (EV) batteries. The development is expected to generate around 4,000 direct jobs, which benefit both the local economy and Jaguar Land Rover, a subsidiary of Tata Motors, by providing a reliable source of batteries. Increased in penetration of EVs in the UK further boost the requirement for advanced semiconductor solutions, which in turn support the growth of automotive semiconductor market.
Moreover, The EV combines batteries and electronic features with the engine for efficient power provided to the vehicles. Thus, development of power devices for electric powertrain is increased significantly in recent years. For instance, in December 2023, ROHM Semiconductor and Shenzhen BASiC Semiconductor collaborated to enhance the performance of silicon carbide (SiC) power devices, particularly for cost-effective solutions in electric vehicle (EV) powertrains. Through this collaboration, the strengths of both companies will be harnessed to develop onboard power modules for EVs, focusing on advancing SiC technology in this domain. The penetration of smart infrastructure has increased the demand for EV infrastructure, which increases the demand for electric vehicles, influencing the market growth.
In addition, the key factors such as increased development in automotive industry along with the increased demand for safety features in automobiles and the introduction of electric & hybrid vehicles across the globe supplements the growth of the market across the globe.
The automotive semiconductor market has been segmented on the basis of component, vehicle type, propulsion type, application, and region. By component, the global market has been segmented into processor, analog IC, discrete power, sensor, memory, and others. By vehicle type, the global automotive semiconductor market has been segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. By propulsion type, the global automotive semiconductor market has been segmented into internal combustion engine and electric. By application, the global automotive semiconductor market has been segmented into powertrain, safety, body electronics, chassis, and telematics & infotainment. By region, the market has been studied across North America, Europe, Asia-Pacific and LAMEA.
Key players profiled in the report include Analog Devices, Inc., Infineon Technologies AG, Micron Technology, NXP Semiconductors, Semiconductor Components Industries, LLC, Renesas Electronics Corporation, Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics and Texas Instruments Incorporated.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automotive semiconductor market analysis from 2022 to 2032 to identify the prevailing automotive semiconductor market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the automotive semiconductor market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global automotive semiconductor market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Component
- Processor
- Analog IC
- Discrete Power
- Sensor
- Memory
- Others
By Vehicle Type
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
By Propulsion Type
- Internal combustion engine
- Electric
By Application
- Powertrain
- Safety
- Body Electronics
- Chassis
- Telematics and Infotainment
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Analog Devices, Inc.
- Semiconductor Components Industries, LLC.
- Robert Bosch GmbH
- ROHM Co., Ltd.
- STMicroelectronics
- Micron Technology, Inc.
- NXP Semiconductors
- Renesas Electronics Corporation
- Texas Instruments Incorporated
- Infineon Technologies AG
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: AUTOMOTIVE SEMICONDUCTOR MARKET, BY COMPONENT
CHAPTER 5: AUTOMOTIVE SEMICONDUCTOR MARKET, BY VEHICLE TYPE
CHAPTER 6: AUTOMOTIVE SEMICONDUCTOR MARKET, BY PROPULSION TYPE
CHAPTER 7: AUTOMOTIVE SEMICONDUCTOR MARKET, BY APPLICATION
CHAPTER 8: AUTOMOTIVE SEMICONDUCTOR MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The Automotive Semiconductor Market is expected to experience a significant growth rate of 10.1% from 2023 to 2032 owing to surge demand for advanced vehicle safety and comfort systems.An automotive semiconductor is a type of semiconductor that is used in automobiles for a variety of functions such as power electronics, chassis systems, body electronics, safety features, and comfort and entertainment units. Semiconductors have a conductivity level that falls between that of conductors (such as metals) and insulators. Their incorporation into automobiles has permitted the development of technologies such as heads-up displays, mobile phone connectivity, autonomous driving assistance, and enhanced comfort and performance.
The need for safety features such as parking assistance, collision avoidance systems, lane departure warnings, traction control, electronic stability control, tire pressure monitors, airbags, and telematics is increasing due to an increase in the frequency of road accidents globally. Automotive semiconductors are a key component in many advanced driver assistance systems (ADAS) technologies, allowing ADAS systems to perform more efficiently and detect and classify objects in the path of the vehicle, alerting the driver of the nearby surroundings and road conditions. Furthermore, based on computations done by semiconductors and other components, these systems can autonomously decelerate or stop the vehicle based on traffic conditions.
Body electronics also includes electronics for controlling sunroof of vehicle developed by a semiconductor solution provider. For instance, in August 2023, Webasto developed an innovative solution by integrating sensors into a panoramic sunroof for autonomous vehicles. Its roof sensor module prototype combines 14 camera and lidar sensors within the panoramic roof, enabling comprehensive 360-degree monitoring of the surroundings of the vehicle.
This technology offers flexibility to automakers, allowing them to tailor and incorporate the desired sensor technology into their roof systems. Factors such as rise in adoption of electric and hybrid vehicles, surge in demand for advanced vehicle safety and comfort systems, and intervention of innovative technologies for advanced user interface (UI) drive the growth of the market across the globe.
In addition, factors such as operational failures in extreme climatic conditions and challenges posed by the worldwide chip shortage hamper the growth of the market across the globe. However, factors such as increase in demand for advanced power semiconductors for enhanced performance and operational efficiency and rise of autonomous vehicles, create ample opportunities for growth of the market during the forecast period.
In addition, in order to provide the same digital human experience to the users, leading automotive companies are improving the user interface (UI) inside the next vehicle generation by adding digital screens and human-interfaces to the interior of a car. Such interfaces require software for technology integration, which in turn, boost the automotive semiconductor market growth. For instance, in January 2020, Rightware, the leading provider of automotive user interface software, introduced new Kanzi reference HMI (Human-Machine Interface) platform, which combines the company’s suite of automotive user interface design software into an integrated solution to help automakers and suppliers deliver the best possible user experience in multi-display digital cockpits.
Moreover, factors such as increase in demand for fuel-efficient, high-performance, and low-emission vehicles along with stringent government rules & regulations toward vehicle emission, are increasing the demand for electric vehicle across the globe.
The automotive semiconductor market has been segmented on the basis of component, vehicle type, propulsion type, application, and region. By component, the global market has been segmented into processor, analog IC, discrete power, sensor, memory, and others. By vehicle type, the global automotive semiconductor market has been segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. By propulsion type, the global automotive semiconductor market has been segmented into internal combustion engine and electric. By application, the global automotive semiconductor market has been segmented into powertrain, safety, body electronics, chassis, and telematics & infotainment. By region, the market has been studied across North America, Europe, Asia-Pacific and LAMEA.
Europe is second largest region of automotive semiconductor market. Europe includes countries such as Germany, France, UK, Russia and rest of European countries across which the automotive semiconductor market report has been studied. The region consists of many key players in the automotive industry such as Mercedes, Audi, BMW, Fiat, Alfa Romeo, Ferrari, and others.
The key players profiled in the report include Analog Devices, Inc., Infineon Technologies AG, Micron Technology, NXP Semiconductors, Semiconductor Components Industries, LLC, Renesas Electronics Corporation, Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics and Texas Instruments Incorporated.
Key Market Insights
By component, the analog IC segment was the highest revenue contributor to the market, with $15.74 billion in 2022, and is estimated to reach $39.35 billion by 2032, with a CAGR of 11.5%.By vehicle type, the passenger car segment was the highest revenue contributor to the market, with $46.83 billion in 2022, and is estimated to reach $117.49 billion by 2032, with a CAGR of 9.8%.
By propulsion type, the internal combustion engine segment was the highest revenue contributor to the market, with $45.39 billion in 2022, and is estimated to reach $117.19 billion by 2032, with a CAGR of 9.2%.
By application, the telematics and infotainment segment was the highest revenue contributor to the market, with $17.65 billion in 2022, and is estimated to reach $46.71 billion by 2032, with a CAGR of 10.4%.
Based on region, Asia-Pacific was the highest revenue contributor, accounting for $22.73 billion in 2022, and is estimated to reach $62.35 billion by 2032, with a CAGR of 10.8%.
Companies Mentioned
- Analog Devices, Inc.
- Semiconductor Components Industries, LLC.
- Robert Bosch GmbH
- ROHM Co., Ltd.
- STMicroelectronics
- Micron Technology, Inc.
- NXP Semiconductors
- Renesas Electronics Corporation
- Texas Instruments Incorporated
- Infineon Technologies AG
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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