Fuelled by the rising demand for advanced electronic components in vehicles, the global automotive semiconductor market is set for significant growth. As technology evolves, the market adjusts to meet consumers' increasing expectations for connected, safe, and efficient vehicles. Consequently, the integration of semiconductors in automotive applications will continue to drive innovation, ensuring a dynamic and prosperous future for the automotive industry.
These factors propel the global automotive semiconductor market, which was valued at $ 43.26 billion in 2022, is projected to soar to $ 87.2 billion by 2031. According to SkyQuest, the market will growth at a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031, driven by the ongoing digital revolution in the automotive sector.
Key Drivers
Components and Technology: Automotive semiconductors are integral to a range of electronic components in vehicles, including infotainment systems, engine control units, and advanced driver assistance systems (ADAS). The market is segmented by various components such as processors (including microprocessors, microcontrollers, digital signal processors, and graphic processing units), discrete power devices (like transistors and diodes), sensors (covering image sensors, pressure sensors, inertial sensors, and temperature sensors), memory modules, analog ICs, lighting devices, and connectivity solutions.
Vehicle Types and Fuel Categories: The market is further categorised by vehicle types: passenger vehicles, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). Passenger vehicles dominate due to high demand for connectivity features, infotainment, and ADAS. In terms of fuel types, the market includes gasoline, diesel, and electric vehicles (EVs), encompassing hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs).
Applications
Semiconductors in the automotive sector are crucial across various applications, including chassis systems such as brakes, steering, traction control, suspension, and vehicle dynamic management. In the powertrain category, they are essential for engine control, EV motors, and transmission systems. For safety, semiconductors enable features like airbags, electronic stability control, adaptive cruise control, night vision, tire pressure monitoring systems (TPMS), and parking assistance. They also play a vital role in telematics and infotainment systems, encompassing dashboards, navigation systems, connectivity devices, and audio-video systems. Additionally, in body electronics, semiconductors are used in body control modules, doors, mirrors, window controls, and HVAC systems.
Vehicle Segments
Passenger Vehicles: The passenger vehicle segment leads the market due to increasing consumer demand for advanced infotainment systems and ADAS. These semiconductors enhance vehicle efficiency, safety, and user experience, driving market expansion and technological advancement.
Commercial Vehicles: Light and heavy commercial vehicles also contribute significantly to the market, propelled by fleet management regulations and safety measures integration. Semiconductors in this segment ensure operational efficiency, vehicle safety, and improved logistics, fostering innovation and expanding the market.
Crucial Impact Of Semiconductor Applications
Automotive semiconductors are indispensable in various applications, including engine control units (ECUs) that improve engine performance and efficiency, infotainment systems that provide entertainment and connectivity solutions, enhancing the user experience, and advanced driver assistance systems (ADAS) that ensure safer driving through features like collision avoidance and lane departure warnings. Additionally, they are vital in telematics, enabling communication, navigation, and fleet management, thereby promoting safe and efficient driving.
Body electronics, including systems like keyless entry, lighting, and climate control, significantly enhance vehicle comfort, safety, and convenience. The increasing integration of these systems in modern cars drives the demand for automotive semiconductors.
Telematics and infotainment systems are crucial for modern vehicles, offering services like GPS navigation, movie streaming, and wireless connectivity. These semiconductors promote safe driving and improve the overall quality of experience, meeting the growing consumer demand for connected and intelligent vehicles.
Silicon's Role In Vehicle Innovation, Safety
The strong demand for infotainment systems, ECUs, ADAS, and networking solutions positions the global automotive semiconductor industry at the forefront of automotive innovation. These chips are essential for enhancing vehicle fuel economy, security, and operational comfort. The market's growth will be driven by the emphasis on passenger cars and the increasing obligations for commercial vehicles, including fleet management integration and safety enhancements.
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