Automotive IC Market size is slated to depict appreciable gains from 2021 to 2027, fueled by the rising penetration of electric vehicles and a subtle increase in concerns regarding the safety and security of the vehicle and people. In addition, surge in need for autonomous vehicles across vivid economies around the world is expected to have a significant impact on the overall market growth.
Automotive ICs are assembled in diverse applications on a single chip to augment the performance of the whole vehicle. It finds expansive applications in power train control, safety systems, driver assistance, and communication and infotainment systems in automobiles.
However, increasing vehicle system complexity and deployment of various components into smaller modules are potential challenges hampering the industry growth during the forecast period. Due to the implementation of complex systems designs, ICs face issues in networking and communicating with other components, thus limiting the overall system performance. These issues are likely to be overpowered by novel industrial strategies and developments of application-specific and compatible circuits by various manufacturers that support high-end applications in automated vehicles, and EVs. For instance, Foxconn, Taiwanese electronics conglomerate recently announced taking over a semiconductor plant from a domestic memory chip supplier for $90 million, marking a significant step by the company for its nascent EV business.
Analog integrated circuits are poised to account for considerable returns in the coming years, mainly owing to the rising popularity of EVs and HEVs. Elevating production and sales of EVs across different countries has led to a prolific rise in the sales of semiconductors, thus influencing the business space of automotive IC market.
Based on the application spectrum, automotive ICs are estimated to play a vital role in engine management. Engine management IC forms the core processing unit for engine management. It plays an integral function in accumulating, analyzing, processing, and executing the data it receives from different sub-systems. Engine management IC collects real-time data from various engine sensors and regulates ignition timing, various actuators, variable valve timing, and others.
North America is anticipated to churn out lucrative gains for automotive IC market in the coming years, driven by the growing presence of major players offering advanced solutions. Furthermore, the rising adoption of advanced vehicles and an upsurge in public demand for security and safety features, like ADAS, in automobiles has propelled the growth structure of North America market. In addition, elevating sales of passenger cars in the region is further opening new growth opportunities for the regional expansion.
Robert Bosch GmbH (Robert Bosch Stiftung GmbH), Renesas Electronics Corporation, NXP Semiconductors, Infineon Technologies AG, Texas Instruments, STMicroelectronics, and others are some of the prominent companies operating in the overall market. These leaders are relentlessly working towards developing novel innovations in the space. Meanwhile, they are also looking forward to taking up significant measures like acquisitions, mergers, and more to gain a competitive edge in the global market.
Severe shortage of semiconductor chips and disruption in vehicle production and supply chains during 2020, in wake of the global coronavirus pandemic, has had a negative impact on the overall growth structure of market. Automobile sales fell dramatically as chip and various automobile parts production was halted due to mobility restriction, leaving automotive IC demand to decline considerably.