Rapid developments in the automotive industry, surge in demand for safety features in automobiles, and intervention of innovative technologies for advanced user interface (UI) drive the growth of the global automotive semiconductor market to reach $ 113.94 billion by 2030.
As per the recent report by Allied Market Research- the Automotive Semiconductor Market by component, vehicle type, propulsion and application - Global Opportunity Analysis and Industry Forecast, 2021–2030, the automotive semiconductor generated $ 37.99 billion in 2020 and is expected to grow at a CAGR of 11.8% from 2021 to 2030.
Despite several key driving factors, operational failures in extreme climatic conditions, high initial cost and complex structure hinder the market growth. On the other hand, the increase in demand for electric and hybrid vehicles and technological advancements and innovation in advanced driver assistance system (ADAS) technology present new opportunities in the coming years, the report said.
Some of the leading market players in this space includeAnalog Devices, Infineon Technologies, Micron Technology, NXP Semiconductors, On Semiconductor, Renesas Electronics, Robert Bosch, ROHM, STMicroelectronics and Texas Instruments.
Manufacturing facilities in the electronics and semiconductors industry have been shut down due to lockdown measures, lack of sufficient workforce, and disruptions in the global supply chain. This led to reduced production volumes of semiconductors used in the automotive sector.
The demand for various components such as processors, sensors, and others in the production of passenger cars, light commercial vehicles, and heavy commercial vehicles decreased significantly due to the stoppage of production activities during the lockdown. However, the demand is expected to recover post-lockdown.
Market players have been revising their business strategies to ensure business continuity and adopting quick response strategies to maintain the supply chain.
Allied Market Research said that the passenger car segment will continue its lead position throughout the forecast period. The passenger car segment contributed to the highest share in 2020, accounting for nearly four-fifths of the global automotive semiconductor market, and is estimated to continue its lead position till 2030. This is attributed to the increased sales volume of passenger cars across the globe. However, the light commercial vehicle segment is estimated to manifest the highest CAGR of 13.9% from 2021 to 2030 due to the increased application of advanced technologies in LCVs worldwide.
The research firm noted that the telematics and infotainment segment will maintain its dominance during the forecast period.
The telematics and infotainment segment accounted for the highest share in 2020, contributed to nearly one-third of the global automotive semiconductor market, and is expected to maintain its dominance during the forecast period. Moreover, this segment is estimated to portray the fastest CAGR of 14% from 2021 to 2030 due to increased vehicle utilisation and user preferences changes. The research also analyses the segments, including powertrain, safety, chassis, and body electronics.
North America
Allied Market Research said that based on region, North America accounted for the highest market share in 2020, contributing to around two-fifths of the global automotive semiconductor market. This is due to increased production and sales of automotive vehicles equipped with advanced components and features, including telematics, ADAS, and in-vehicle connected services. However, Europe is projected to contribute to the highest share in terms of revenue by 2030. On the other hand, Asia-Pacific is expected to witness the fastest CAGR of 15.9% during the forecast period. This is attributed to the development of advanced vehicle-based technologies across Asian countries, the research firm noted.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: NXP Semiconductors.