Automotive Semiconductor Market 2023 Economic Environmental Analysis and Future Forecast 2030
Automotive Semiconductor Industry
The global automotive semiconductor market is expected to reach USD 77.76 billion by 2030, growing at a CAGR of 8.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. Growing focus on vehicle safety systems and a significant increase in the adoption of engine control units (ECUs) in modern automobiles are anticipated to drive demand for automotive semiconductors. Moreover, emerging technologies such as 5G and IoT are expected to play an instrumental role in increasing the demand for automotive semiconductors. Additionally, electric vehicles and all levels of assisted driving technologies are expected to create considerable growth opportunities in the automotive semiconductor market over the forecast period.
Electrification in the automotive industry is growing rapidly owing to the rising need to reduce carbon emissions. Having realized the importance of electric vehicle business opportunities, several manufacturers are increasingly investing in smart technologies, electronics, and safety systems. Such components of electric vehicles comprise semiconductors equipped with advanced technologies to improve the functionalities of smart electronics. For instance, the application of shock sensors, MEMS accelerometers, MEMS gyroscopes, inertial sensors, tilt sensors, and MEMS microphones for rollover detection, electronic braking, dynamic head lighting, inertial navigation, and airbag safety systems. Hence, as the demand for hybrid and electric vehicles increases, the need for semiconductors is anticipated to increase over the forecast period.
Safety guidelines and regulations imposed by governments are expected to play a key role in driving demand in the North American and European automotive semiconductor markets. For instance, a special focus on accident avoidance through ADAS is expected to help drive the automotive semiconductor market growth in countries across these regions. Asia Pacific, led by China, is projected to emerge as the fastest-growing automotive market owing to rapid EV adoption and strong government support.
The Russia-Ukraine war had a significant impact on the automotive semiconductor market in Europe, primarily due to disruptions in the supply chain of critical components. Europe is a significant market for automotive semiconductors, with several leading automakers based in the region. The conflict between Russia and Ukraine has disrupted the supply chain of critical components, leading to shortages and price hikes. For instance, according to data released in 2022 by the International Energy Agency (IEA) stated that the price of lithium increased by two and a half times in 2021 along with cobalt, nickel, aluminum, and copper, which also witnessed an uptrend in the price due to the impact of Russia-Ukraine war.
Gather more insights about the market drivers, restrains and growth of the Global Automotive Semiconductor market
Automotive Semiconductor Market Segments Highlights:
- In terms of component, the discrete power segment accounted for the highest share in 2022 as it helps in enhancing vehicle electrification, connectivity, and shared mobility services
- In terms of vehicle type, the passenger vehicle segment emerged as the dominant segment in 2022 and is anticipated to retain its dominance over the forecast period. The adoption of advanced telematics and infotainment features is expected to boost the growth of the passenger vehicle segment
- In terms of application, the telematics & infotainment segment is projected to grow at the highest CAGR over the forecast period and is anticipated to hold a dominant share by the end of the forecast period. The demand for enabling connectivity to mobile devices, smart devices, and IoT devices is expected to propel the growth of this segment
- The Asia Pacific automotive semiconductor market emerged as the dominant region in 2022 and is projected to grow at the highest CAGR over the forecast period. The 5G technology is expected to play a crucial role in the development of autonomous driving technology which is expected to boost the adoption of semiconductors in this region.
Automotive Semiconductor Market Report Segmentation
Grand View Research has segmented the global automotive semiconductor market based on component, vehicle type, application, and region:
Automotive Semiconductor Component Outlook (Revenue, USD Million, 2018 - 2030)
- Processor
- Discrete Power
- Sensor
- Memory
- Others
Automotive Semiconductor Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)
- Passenger Vehicle
- Light Commercial Vehicle (LCV)
- Heavy Commercial (HCV)
Automotive Semiconductor Application Outlook (Revenue, USD Million, 2018 - 2030)
- Chassis
- Powertrain
- Safety
- Telematics & Infotainment
- Body Electronics
Automotive Semiconductor Regional Outlook (Revenue, USD Million 2018 - 2030)
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- Latin America
- Brazil
- Mexico
- Middle East & Africa (MEA)
- United Arab Emirates (UAE)
- Saudi Arabia
- South Africa
Key Automotive Semiconductor Company Insights
- Analog Devices, Inc.
- Infineon Technologies AG
- NXP Semiconductors
- Renesas Electronics Corporation
- Robert Bosch GmbH
- ROHM CO., LTD.
- Semiconductor Components Industries, LLC
- STMicroelectronics
- Texas Instruments Incorporated
- TOSHIBA CORPORATION
Order a free sample PDF of the Automotive Semiconductor Market Intelligence Study, published by Grand View Research.
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