Automotive Semiconductor Market

Increasing Production of Vehicles

The increasing production of vehicles across various countries has been indirectly aiding in growth of the market. While 92 million cars have been produced in the last year (2019) globally, the curve tends to remain upward during the forecast period impacting the global automotive semiconductor market positively.

With customers looking for greater performance and best-in-class features in their motor vehicles, the demand for automotive semiconductor is expected to rise. This also is resulting due to the rising incorporation of the electrical systems in the automotive industry.

Surge in the Safety Features Demand

There have been a steady growth in the demand of the safety features in the ultra-modern vehicles. Features such as Advanced Driver Assistance Systems (ADAS) in order to avoid accidents due to collisions, require highly reliable automotive semiconductors. Besides this, the advent of automated cars is to work as one of the significant factors in the increased demands of the automotive semiconductors. With sophisticated electronic systems continuing to leave impact across today’s automotive sector, the demand for semiconductors is expected to surge considerably

Key Challenges

Due to the COVID-19 pandemic there is global decline in the automotive demands which is to decline further in the upcoming months. The electrical and digital vehicles being the major source of the automotive semiconductors demands, the global automotive semiconductor market is about to decline by 5% in 2020. Despite of the complete shutting down of the production plants during the lock down, the overall year-to-year growth of the automotive semiconductor market is expected to be 5%-8% by 2021.

Region-wise Analysis

North America Automotive Semiconductor Market

North America held a dominant share of 33% of the global market in 2019. The US, Canada and Mexico governments have taken several initiatives in order to further improve the automotive manufacturing industry. The electric vehicle segment being one of the top most demanded ones will remain the main target of the market players.

The recent adoption of various IoT (Internet of Things) enabled devices to gain better connectivity in US is remarkably contributing towards the evolution of the market.

With the continuous adoption of the energy efficient devices and multiple contracts with the leading companies, North America is to hold their leading position throughout the forecast period.

Request a sample specific to the North America Market

Europe Automotive Semiconductor Market

As the accelerating growth of the automobile industry sustains, the increase in demand for infotainment system technology is creating huge scope in the Europe market. Ultra-modern technologies like driving control, navigation, camera assistance, safety guidance and others are highly demanded in the current automotive market. For instance, in July 2017, Russia launched the first driverless bus named Matryoshka in July, 2017.

As per our research, the Europe automotive semiconductor market showed a growth of 7.7% in CAGR during 2015-2019. As the growing demands of the electric vehicles continues to subside, the automotive semiconductor market in this region is expected to grow by 8.3% during the forecast period (2020-2030).

Request a sample  specific to the Europe Market

East Asia Automotive Semiconductor Market

The East Asia automotive semiconductor market experienced a growth of 6.7% during the period of 2015-2019The surging demand in the premium and luxury cars segment and demand for vehicle safety systems such as electronic stability control, ABS, TPMS, and others remain the key driving factors of the East Asia automotive semiconductor market growth. During the forecast period of 2020-2030 the East Asia automotive semiconductor market is to grow by a CAGR of 7.6%.

Request a sample specific to the East Asia Market

Category-wise Insights

Micro-components Forecast to Dominate

The automobile semiconductors for the micro-components (processors) is forecast to remain the dominant component of the global automobile semiconductor market. This leading segment of the market exhibited a growth by CAGR of 6.0% during 2015-2019. As per the research, the segment is about to gain an accelerated growth of 7.0 % CAGR during the forecast period (2020-2030). Among other market segments by component memory and logic devices, optical sensors, analog ICs and discrete devices are to play the key roles.

Passenger Vehicles to Remain Lead

Passenger vehicles to continue leading the market in the vehicle type-wise segments. Light and heavy commercial vehicles to remain the other dominant segments. The overall market value of the automobile semiconductors for all types of vehicles to grow by a CAGR of 7.0% throughout the forecast period.

The light commercial vehicle sub segment is set to grow by 2.1 times of the current market value by the end of the forecast period (2030) providing a huge scope to the global automotive semiconductor market.  Micro component being another major sub segment is holding approximately 29.5% of the global automotive semiconductor market share and tending to hold the dominant position during the forecast period.

 Safety to Emerge Dominant

The market value of the automobile semiconductors for the applications such as body, safety, power train and others. Of these, the demand from body and safety segments is forecast to remain higher than the rest. Over the course of the forecast period, however, the demand witnessed from the safety segment is likely to rise at a higher pace.  

End-use Industry

The global market can be mainly segmented into automotive and electronics in terms of end-use industry. The automotive sector being the dominant segment in the market, is expected to continue leading throughout the forecast period.

Competitive Landscape

Due to unlimited scope and opportunities subsides, some of the leading market players like Intel Corporation, NVIDIA Corporation, Samsung Semiconductor, and others are taking strategic actions in order to remain in the top positions globally. Some of them are focusing on acquisitions as a key strategy to gain competitive advantage. Besides this, investment towards innovations is forecast to remain high as well.

For instance, Intel Corporation has brought their Fab Semiconductor equipment containing the equipment from the diverse areas like- CMP/Planner, Diffusion, Etch, Implant, Lithography, Metrology, Thin Films, and others.

Another leading marketplayer Broadcom Inc. has come up with their wide varieties of automotive solutions like vehicle connectivity and networking, optical isolation and sensing, wireless communications, LED lighting. Apart from that their products have been widely diversified like- power train, body electronics, infotainment system, and other sectors.

One of the behemoths Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) has recently invented their TSMC 3DFabric which consists of both 2D and 3D front end and back end interconnect technologies. They have also introduced multiple dedicated backend fabs in order to embrace the disruptive future.

Qualcomm Inc. (QCOM) has taken the approach of innovation and comprehensive system integration for the automotive applications.  They are actively leveraging the automotive trends in telematics, infotainment, ADAS, cloud connectivity and cloud management mobile solutions.

Some of the leading competitors in the global automotive semiconductor market-

• Intel Corporation
• Samsung Semiconductors
• NXP Semiconductors
• NVIDIA Corporation
• Broadcom Inc. (AVGO)
• Texas Instruments Inc. (TXN)
• Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
• Qualcomm Inc. (QCOM)
• Micron Technology Inc. (MU)
• ASE Technology Holding Co. Ltd. (ASX)

** The list is for representation purpose only and not exhaustive. The in-depth details is available in the full report.

Automotive Semiconductor Market-Report Scope

Attribute	Details
Forecast Period	2020-2030
Historical Data Available for	2015-2019
Market Analysis	USD Million for value and Units for Volume
Key Regions Covered	North America, Latin America, Europe, East Asia, South Asia and Pacific, Oceania Middle East & Africa
Key Countries Covered	US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa
Key Segments Covered	By components- Micro component (processor), Memory device, Logic, Optical and Sensors, Analog IC, discrete devices (power); By Vehicle Type- Passenger, Light Commercial Vehicles, Heavy Commercial Vehicles; By Application- Body, Safety, Telematics and Infotainment, Power Train, Chassis; By Region- North America, Latin America, Europe, East Asia, South Asia and Pacific, MEA
Key Companies Profiled	Intel Corporation Samsung Semiconductors NXP Semiconductors NVIDIA Corporation Broadcom Inc. (AVGO) Texas Instruments Inc. (TXN) Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) Qualcomm Inc. (QCOM) Micron Technology Inc. (MU) ASE Technology Holding Co. Ltd. (ASX)
Report Coverage	Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Key Questions Answered by the Report

• What is the likely CAGR forecast for the global automotive semiconductor market?

  The global automotive semiconductor market is set to exhibit a steady growth of 7.0% throughout the forecast period (2020-2030)

• What is the potential impact of COVID-19 pandemic on the global automotive semiconductor market?

  Due to Covid-19 pandemic, the global automotive semiconductor market might witness decline it its growth. Though the overall global market growth will sustain throughout the forecast period

• What are the key factors driving automotive semiconductor market?

  The market is driven by factors such as increasing demand for passenger, heavy and light vehicles, and the surging demand for various safety features such as Advanced Driver Assistance Systems (ADAS) in order to avoid accidents due to collisions.

• Who is the leading end user for automotive semiconductor?

  The surging demand for greater safety features and advanced driving is expected to fuel the demand for semiconductors in the automotive sector. The industry will continue accounting for the leading market share through the course of the forecast period

• Which region is most likely to emerge dominant in the global automotive semiconductor market?

  North America is forecast to remain dominant. However, growth witnessed in Europe is likely to accelerate at a higher pace in the coming years

• Which companies are expected to give a tough competition in the global automotive semiconductor market?

  As the unlimited scope and opportunities subsides, the leading market players like Intel Corporation, NVIDIA Corporation, Samsung Semiconductor etc. is taking strategic actions in order to keep them in the top positions globally

• Which segment based on type in the global automotive semiconductor is expected to show the highest growth?

  The automobile semiconductors for the micro-components (processors) to remain the dominant component of the global automobile semiconductor market. The Passenger vehicles to continue leading the market in the vehicle type-wise segments.

Enquiry before Buying

• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

• Is a sample of this report available for evaluation?

  Yes, you can request a sample and it will be sent to you through an email.

• How can I buy this report?

  FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.

Key Segments

Component

• Micro component (processor)
• Memory device
• Logic
• Optical and Sensors
• Analog IC
• Discrete devices (power)

Vehicle Type

• Passenger

• Light Commercial Vehicles
• Heavy Commercial Vehicles

Application

• Body
• Safety
• Telematics and Infotainment
• Power Train
• Chassis

End-use Industry

• Automotive
• Electronics

Regional Outlook

• North America (U.S., Canada)
• Latin America (Mexico, Brazil, Rest of LATAM)
• Europe (Germany, U.K., France, Italy, Spain, Poland, Russia, Rest of Europe)
• East Asia (China, Japan, South Korea)
• South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
• Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)