Automotive Semiconductor Market Analysis

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.