Semiconductors in automotive Market Overview:
The Semiconductors in automotive Market size is poised for substantial growth, with the latest report from Market Research Future (MRFR) projecting an impressive Compound Annual Growth Rate (CAGR) of 8.6% during the forecast period spanning from 2022 to 2030.
The Semiconductors in automotive Market is undergoing rapid evolution, driven by the increasing complexity and sophistication of vehicles. These semiconductors play a pivotal role in enabling advanced features such as autonomous driving, electrification, connectivity, and enhanced safety systems. With the rise of electric vehicles (EVs) and the integration of advanced driver assistance systems (ADAS), the demand for automotive semiconductors continues to surge. This market segment is characterized by intense competition and innovation as semiconductor manufacturers strive to develop more efficient, reliable, and cost-effective solutions tailored to the specific requirements of modern automobiles.
Furthermore, the Semiconductors in automotive Market is witnessing significant technological advancements, including the integration of artificial intelligence (AI) and machine learning algorithms into automotive systems. These technologies enhance the performance of vehicles, enabling them to make real-time decisions, optimize energy usage, and improve overall safety. As automotive manufacturers focus on electrification and connectivity, semiconductor companies are poised to play a crucial role in shaping the future of mobility. With the proliferation of electric and autonomous vehicles, the Semiconductors in automotive Market is expected to continue its robust growth trajectory, presenting lucrative opportunities for players across the industry ecosystem.
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Automotive Semiconductor Drivers
One of the primary drivers propelling this growth is the increasing adoption of environmentally friendly alternative fuel vehicles, particularly hybrid electric vehicles. This trend is expected to significantly contribute to market expansion throughout the forecast period. Notably, the International Council on Clean Transportation (ICCT) reported that global electric vehicle production surpassed 2 million units per year in 2018, with more than 80,000 electric vehicles sold annually.
Additionally, several other factors are enhancing the value of the Semiconductors in automotive Market. These include the expanding production of automobiles, the growing utilization of automotive semiconductors in active safety systems and autonomous driving technologies, in-vehicle networking and connectivity solutions, LED lighting applications, efforts to improve fuel efficiency and reduce emissions, advancements in vehicle electrification, as well as innovations in powertrain, interiors, and vehicle body systems. Furthermore, the development of connected cars equipped with advanced electronics is also contributing to the market's growth.
Automotive Semiconductor Key Players:
· NXP Semiconductor NV
· Infineon Technologies AG
· Renesas Electronics Corporation
· STMicroelectronics N.V.
· Toshiba Corporation
· Texas Instrument Inc.
· Robert Bosch GmbH
Automotive Semiconductor Shortage Update
The automotive semiconductor shortage has been a major disruption to the global auto industry for the past two years. However, there are signs that the shortage is finally easing.
Production is recovering
In 2021, automakers lost an estimated 9.5 million units of production due to the chip shortage. However, production is now recovering, and S&P Global Mobility expects that automakers will be able to build an additional 2.7 million units in 2023 compared to 2022.
Inventory levels are improving
Inventory levels of semiconductor chips are also improving. According to the Semiconductor Industry Association, inventory levels for automotive semiconductors are now at 60 days of supply, up from 40 days of supply in early 2022.
Prices are starting to come down
Prices for semiconductor chips are also starting to come down. The average selling price for a semiconductor chip is now down 10% from its peak in early 2022.
The long-term outlook
Despite these positive signs, there are still some challenges ahead. The semiconductor industry is still working to catch up with demand, and there is a risk that the shortage could return if there are any disruptions to the supply chain.
However, the overall outlook for the automotive semiconductor shortage is positive. Production is recovering, inventory levels are improving, and prices are starting to come down. This suggests that the worst of the shortage is over, and that automakers will be able to increase production in the coming months and years.
Here are some of the factors that are contributing to the easing of the shortage:
· Increased investment in semiconductor manufacturing: Governments and chipmakers are investing billions of dollars in new semiconductor manufacturing capacity. This will help to increase the supply of chips in the long term.
· Improved supply chain management: Automakers and chipmakers are working together to improve supply chain management. This will help to prevent future shortages.
· Changes in consumer demand: Consumer demand for electronic devices is starting to slow down. This is reducing demand for chips, which is helping to ease the shortage.
Automotive Semiconductor Opportunities
Policies Imposing Perilous Safety Arrangements in Cars to offer Lucrative Opportunities
Various policies imposing greater perilous safety arrangements in cars like agile automotive proposals, airbags, and lane departure warning for more efficacy, communication systems, and directives for efficient route-finding will offer lucrative opportunities for the market over the forecast period.
Automotive Semiconductor Restraints
Rising Cost of Overall Vehicle to act as Market Restraint
The rising cost of overall vehicle and maintenance between quality and cost of product may act as market restraint over the forecast period.
Challenges
Constant Optimization to act as Market Challenge
The continuous optimization of component size, high regulations, and shortage of semiconductor chips may act as market challenges over the forecast period.
Automotive Semiconductor COVID-19 Analysis
During the COVID-19 outbreak, the Semiconductors in automotive Market experienced a negative impact as the key automotive fabricating plants have totally stopped their production due to the government imposed lockdown by numerous countries across the globe. Besides, the crisis caused unrealistic disturbance in the supply chain network and production. This essentially influenced on research and development investments and capital. Further, restrictions imposed by the government on transportation endured a boycott which impacted the Just in Time strategies that ended the production plans prompting standing by and also plan closure.
Semiconductors in automotive Market Segmentation
· The global Semiconductors in automotive Market is segmented based on vehicle type, application, and component.
· By component, the integrated circuits segment will lead the market over the forecast period at a high CAGR.
· By application, the power electronics segment will dominate the market over the forecast period and at a significant CAGR.
Regional Analysis
APAC to Steer Semiconductors in automotive Market
The APAC region will steer the market over the forecast period. The region being a major automotive hub with the market share in terms of vehicle production and sales, growing Chinese automotive market, the market has evolved into the largest producer of vehicles, the region being the largest consumer of automotive semiconductor across the globe, increasing growth of automotive industry in China, Japan, and India, and the presence of leading semiconductor manufacturers in the region are adding to the global Semiconductors in automotive Market share in the region.
North America is set to experience significant development within the Semiconductors in automotive Market during the forecast period. Several key factors are driving this growth in the region, including rapid economic advancement, a rising demand for electric vehicles (EVs), increasing adoption of intelligent transportation systems, the integration of automated safety technologies, a surge in EV production, and the presence of numerous prominent industry players.
In the United States, for instance, the National Highway Traffic Safety Administration highlights the continuous evolution of automotive technology, with a focus on delivering enhanced safety benefits and Advanced Driver Assistance Systems (ADS). Notably, American semiconductor pioneer Texas Instruments is currently at the forefront of the industry, offering top-notch solutions for applications such as ultrasound, Lidar, camera, radar, and sensor combinations. These advancements further contribute to the robust growth of the Semiconductors in automotive Market in North America.
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