Automotive Semiconductor Market Size - By Component (Processor, Analog IC, Discrete Power, Sensor, Memory), Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle), Propulsion Type, Application & Forecast 2023 – 2032

Automotive Semiconductor Market Size

Automotive Semiconductor Market size surpassed USD 60 billion in 2022 and is anticipated to grow at 10.5% CAGR from 2023 to 2032 owing to the rising consumer demand for enhanced safety features into vehicles.
 

Automotive semiconductors are electronic components that are specifically designed and optimized for use in automotive applications. They provide essential functionalities for various automotive systems including powertrain, safety, infotainment, connectivity, and ADAS, thereby enabling advanced features and enhanced performance in modern vehicles. The automotive electronics market is poised to cross USD 650 billion valuation by 2032.
 

Technological complexities and compatibility issues can hinder automotive semiconductor market growth during the forecast period. Automotive semiconductor technologies are becoming increasingly complex owing to the rising demand for advanced functionalities. Integrating different semiconductor components and ensuring compatibility with existing automotive software platform & architecture can be challenging. This challenge can be attributed to the fact that vehicles are becoming more sophisticated and incorporating multiple connectivity standards as well as communication protocols. Due to these factors, ensuring seamless integration and the interoperability of semiconductor solutions can be considered as restraints.
 

COVID-19 Impact

The COVID-19 pandemic impacted several markets including the automotive semiconductor industry in 2020. It led to disruptions in global supply chains including that of the semiconductor industry. Factory shutdowns, reduced manufacturing capacities, and logistics challenges disrupted the production & distribution of automotive semiconductors. This led to shortages and delays in the availability of critical semiconductor components, impacting vehicle production & sales. Moreover, lockdown measures, economic uncertainties, and changing consumer behavior resulted in a decreased demand for automobiles. Many people postponed purchasing decisions or faced financial constraints, thereby triggering a decline in vehicle sales. The reduced demand for vehicles directly impacted the demand for automotive semiconductors.
 

Automotive Semiconductor Industry Trends

The transition toward electric vehicles is a major trend driving the automotive semiconductor market expansion. The rising adoption of EVs necessitates the need for advanced semiconductor solutions for use in battery management systems, power electronics, electric motor control, and charging infrastructure. Semiconductor companies are investing in technologies that optimize energy efficiency, increase power density, and improve thermal management to meet the electric vehicle industry demand.
 

The automotive sector is experiencing a rapid increase in connectivity and in-vehicle networking capabilities. This trend is impelled by consumer demand for features including in-car infotainment, connected services, and advanced communication systems. Automotive semiconductors play a crucial role in enabling secure & reliable communication within the vehicle and with external networks. Growth in 5G technology is expected to further enhance connectivity and drive the demand for automotive semiconductor solutions.
 

Automotive Semiconductor Market Analysis

The sensor segment is expected to witness 12% growth rate during 2023 to 2032 and reach revenue of over USD 45 billion by 2032. The rising espousal of autonomous driving solutions is boosting the demand for sensors in the automotive semiconductor market. The development of autonomous vehicles requires a wide range of sensors including LiDAR sensor, radar sensor, camera sensor, and ultrasonic sensor to enable the accurate perception and mapping of vehicle surroundings.
 

The passenger car segment held a dominant share of over 50% in 2022 and is expected to grow at a lucrative pace through 2032 as passenger cars are increasingly being equipped with advanced features & technologies to enhance comfort, convenience, safety, and connectivity.  The integration of advanced infotainment systems, navigation systems, and connectivity features in passenger cars also requires semiconductor components such as microcontrollers, memory chips, and communication modules. This factor is fueling the need for automotive semiconductors, which is also contributing to market development.
 

Asia Pacific automotive semiconductor market captured significant global share of 30% in 2022. The region is witnessing a significant shift toward electric vehicles due to government policies and environmental concerns. China is one of the largest markets for electric vehicles globally. According to an IEA Report, in 2022, China accounted for 60% of the global EV sales with an 82% increase compared to the previous year. As governments in the region promote the acceptance of EVs through incentives & regulations, the use of automotive semiconductors in electric vehicle applications, such as battery management systems and power electronics, is expected to grow suggestively.
 

Automotive Semiconductor Market Share

Major companies operating in the automotive semiconductor industry are :

• Analog Devices, Inc.
• Infineon Technologies AG
• NXP Semiconductors N.V
• Onsemi
• Robert Bosch GmbH
• STMicroelectronics N.V.

The competitive landscape is characterized by continuous innovations as companies strive to improve their offerings with new features, integrations, and partnerships.
 

Automotive Semiconductor Industry News:

• In May 2023, Infineon Technologies AG collaborated with Hon Hai Technology Group to develop advanced electromobility with effective & advanced features. The collaboration covers a wide range of Infineon automotive products such as sensors, power semiconductors, microcontrollers, high-performance memories, security solutions, and human-machine interfaces.
   

This automotive semiconductor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & Units from 2018 to 2032, for the following segments:

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Market, By Component

• Processor
• Analog IC
• Power Discrete
• Sensor
• Memory
• Others

Market, By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Market, By Propulsion Type

• Gasoline
• Diesel
• EV/HEV

Market, By Application

• Powertrain             
• Safety
• Body Electronics
• Chassis
• Telematics & Infotainment

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • Saudi Arabia
  • UAE