Increasing vehicle production and rise in vehicle electrification fuel the automotive semiconductor market to reach $ 42.14 billion by 2027, Valuates Reports stated.
According to the report on global opportunity analysis and industry forecasts from 2021to 2027, published by Valuates Reports under Electronic Components Category, the market was estimated at around $ 31.43 billion in 2020 and expected to grow at a CAGR of 3.8% during the forecast period 2021-2027.
Rising demand for advanced safety and comfort systems is expected to propel the Automotive Semiconductor market growth further. In addition, cars are increasingly incorporating technology that improves their connectivity. Semiconductors allow cars to stay connected in real-time. Thus the increasing number of connected cars is expected to drive the automotive semiconductor market growth, the research firm said.
Top players in the automotive semiconductor industry include NXP Semiconductors, Renesas Electronics, Infineon Technologies, STMicroelectronics, Robert Bosch, Texas Instruments, ON Semiconductor, ROHM, Toshiba and Analog Devices.
Influencing Trends
The increasing manufacturing of electric vehicles worldwide is one of the primary reasons driving the global automotive semiconductor industry. Furthermore, the increased automotive production is assisting market expansion. For example, the number of automotive users is fast expanding, contributing to an increase in semiconductor demand for vehicle production.
Moreover, the growing demand for safety and security requirements would boost the global automotive semiconductor market's growth over the forecast period. The integration of semiconductor technology enables intelligent features such as backup cameras, blind-spot detection, adaptive cruise control, lane change aid, airbag deployment, and emergency braking systems.
New automobiles on the market include more advanced telematics (long-distance data transmission) and infotainment features that provide drivers with information on things like road closures, collision avoidance, and even available parking spaces at their destination. The onboard processors that process this data must process millions of lines of code each second. In addition, semiconductors allow automobiles to communicate in real-time. As a result, the automotive semiconductor market is likely to benefit from the future of connected and autonomous vehicles.
Market Share Analysis
The sensors segment is expected to be the most lucrative. Sensors are increasingly used in car electrification, transmission systems, Light Detection and Ranging (LiDAR), engines, cameras, and safety systems. Besides, semiconductors make it easier to process data collected by automobile sensors to make real-time driving decisions, which is projected to drive market expansion.
Passenger cars are expected to be the most lucrative during the forecast period. The high demand for passenger automobiles worldwide, particularly in Asia-Oceania, is to blame for this growth. For example, in countries like China, India, Thailand, Indonesia, and Malaysia, expanding middle-class populations and improved disposable income have driven demand for passenger automobiles.
The Asia Pacific region is expected to be the most lucrative during the forecast period. With most of the market share in car production and sales, the region has emerged as a key automotive hub. The key driver of this trend is China's expanding car market. As a result, this market has grown to become the world's largest vehicle manufacturer and, as a result, the greatest consumer of automotive semiconductors, the research firm said.
Courtesy: Valuates Reports. NB: Photo is representational; courtesy: Texas Instruments.