Automotive IC Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, South Korea, Australia, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa), Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2019 – 2025
Report ID: GMI3400
Automotive IC Market size is set to grow exponentially to 2025 driven by increasing implementation of electronic components and systems due to technological innovations in modern vehicles. The global automotive industry is experiencing high adoption of electronic systems in various applications such as body, powertrain, advanced safety & chassis systems, etc. As a result, these systems require efficient & compatible components including ECUs, transceivers, and circuits, further accelerating the automotive IC market growth. Moreover, the increasing semiconductor content in the recently developed autonomous & electric vehicles is another factor generating the demand for such products. These vehicles incorporate several electronic and IoT-based solutions, which require many semiconductors and ICs to support vehicle tracking, traffic management, etc., thereby creating several opportunities for the market expansion.
The increasing vehicle system complexity and integration of several components into small modules are challenges hampering the automotive IC market. Due to the incorporation of complex systems designs, ICs face issues in communicating and networking with other components that will impact the overall system performance. These issues can be overcome by the manufacturers by developing application-specific and compatible circuits that can support high-end applications in EVs, automated vehicles, etc.
The rapid adoption of electrification technologies in vehicle systems, such as drivetrain, engine management systems, etc., is creating a high demand for efficient ICs, further developing the automotive IC market. Additionally, the growing need for utilizing automobile electronic systems that support low-carbon emissions and consume less energy is an essential factor that contributes to the demand for advanced electronic components. These factors along with government initiatives and concerns related to controlling vehicular pollution and reducing road fatalities across the globe are further adding up to the market expansion prospects. These regulations in several countries including the U.S. and China enforce OEMs to integrate advanced safety systems such as driving assistance solutions, airbags, braking systems, etc. For instance, in September 2018, the Minister of Road Transport and Highways, India announced the government’s plan to mandate ADAS features in all upcoming cars by 2020.
In the automotive IC market, analog circuit types are gaining high traction owing to the increasing implementation in EVs and HEVs. The rising production & sales of EVs across several countries, mainly China and the U.S. led to an increased sale of semiconductors. The market manufacturers have developed several application-specific circuits that support the vehicle system requirements such as entertainment, connectivity, and power management applications.
ADAS applications are experiencing high growth opportunities in the automotive IC market owing to increasing safety features in the newly developed vehicles. These systems consist of various solutions, such as braking systems, parking assistance, and airbags, which include several sensors, semiconductors, and circuits. The increasing implementation of such systems in passenger & commercial vehicles is contributing to the demand for electronic components and further providing growth opportunities to the automotive IC market growth. Additionally, powertrain applications are also gaining popularity due to the development of alternate powertrain solutions to be deployed in energy-efficient cars. These systems are gaining popularity in China owing to the high production & sales activities of EVs in the country, further driving the market growth.
The Asia Pacific automotive IC market is growing rapidly in recent years owing to the high production of passenger and commercial vehicles in countries including China and Japan. The presence of several automobile OEMs & system manufacturers in the region also contributes to industry development. The easy & cheap availability of electronic components and raw materials in the Asian countries is adding up to the increasing manufacturing activities in the market. Additionally, Europe is also gaining traction due to the presence of several leading OEMs and luxury car manufacturers in the region. The increasing export activities of automobile companies to other regions are gaining momentum due to the requirement of electronic solutions, further increasing the automotive IC market demand.
The key players operating in the automotive IC market are Renesas Electronics Corporation, Robert Bosch GmbH, Infineon Technologies AG, NXP Semiconductors, STMicroelectronics, Microchip Technology, Inc., Texas Instruments, ON Semiconductor, Toshiba Electronic Devices & Storage Corporation, and Qualcomm Technologies, Inc. The prominent companies in the market focus on developing highly efficient semiconductors and circuits that support complex automobile systems. The companies have also developed application-specific ICs that are deployed in systems such as airbags, driver assistance, engine management, transmission control, and battery management. The industry players face high competition from the leading companies as they have long-term partnerships and strong relations with auto OEMs across the globe. To survive in a highly competitive industry, companies are focusing on product innovations and low-pricing strategies. They also adopt several merger & acquisition strategies to strengthen the company’s position in the industry. For instance, in February 2017, Renesas Electronics Corporation announced the acquisition of Intersil Corporation, which provides innovative analog & power management solutions.
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