Press Release

Automotive Semiconductors Market is expected to grow at a CAGR of 13.75%

Global Automotive Semiconductors Market is expected to grow owing to increasing focus on vehicle safety and the widespread adoption of Advanced Driver-Assistance Systems (ADAS) throughout the forecast period.

According to TechSci Research report, “Automotive Semiconductors Market - Global Industry Size, Share, Trends, Opportunity, and Forecast 2019-2029”, the Global Automotive Semiconductors Market is expected to register robust growth during the forecast period. The growing adoption of electric vehicles is a major driver for the automotive semiconductors market. Electric vehicles rely heavily on semiconductor components for power management, battery control, and electric motor drives. As governments worldwide implement stringent emission standards and offer incentives for electric vehicle adoption, the demand for advanced semiconductors that enhance the efficiency and performance of electric powertrains continues to rise.

The increasing adoption of electric vehicles represents a significant opportunity for the automotive semiconductors market. Electric vehicles rely heavily on semiconductor components for power management, battery control, and electric motor drives. As governments worldwide set ambitious targets for reducing emissions and promoting sustainable transportation, semiconductor manufacturers have the opportunity to develop specialized solutions for the evolving needs of the electric vehicle ecosystem.

 

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Based on component type, the Micro-components segment is expected to dominate the market during the forecast period. In addition to the traditional role of storing software and firmware, memory devices are essential for managing the vast amounts of data generated by sensors and cameras in autonomous driving systems. The ongoing trend of connected vehicles and the Internet of Things (IoT) in the automotive sector further emphasizes the importance of memory devices for storing and processing data related to vehicle-to-everything (V2X) communication. Sensors are critical micro-components that enable vehicles to perceive and respond to their surroundings. The automotive industry relies on various types of sensors, including radar, lidar, ultrasonic sensors, and image sensors, to support functionalities such as collision avoidance, parking assistance, and autonomous driving. As the demand for safety features and ADAS grows, the sensor segment within micro-components becomes increasingly vital. Moreover, sensors play a key role in enhancing the efficiency and performance of electric vehicles. Battery management systems use sensors to monitor temperature, voltage, and current, ensuring the safe and optimal operation of the vehicle's battery. The development of more advanced and precise sensors is a continuous focus within the micro-components segment to meet the evolving requirements of the automotive industry. The micro-components segment of the global automotive semiconductors market is witnessing dynamic growth driven by the industry's technological advancements. Microcontrollers, microprocessors, memory devices, and sensors are foundational elements shaping the trajectory of automotive electronics. As vehicles become more connected, automated, and electrified, the demand for advanced micro-components is expected to continue, fueling innovation and collaboration within the automotive semiconductor ecosystem. Manufacturers and suppliers focusing on developing reliable, efficient, and high-performance micro-components will be well-positioned to capitalize on the evolving needs of the automotive industry.  

Based on vehicle type, the Passenger Cars segment is projected to dominate the market throughout the forecast period. The trend towards connected cars and the Internet of Things (IoT) has led to a surge in the integration of communication modules and connectivity solutions within passenger vehicles. Semiconductors enable features such as vehicle-to-everything (V2X) communication, allowing cars to communicate with each other and with the surrounding infrastructure. This trend is expected to accelerate with the development of autonomous vehicles, where communication between vehicles and with the external environment is critical. The ongoing shift towards electric vehicles (EVs) and hybrid vehicles is reshaping the powertrain technologies in the passenger cars segment. Semiconductors are essential for managing the complex power electronics systems, battery management, and electric motor drives in electric and hybrid vehicles. The demand for energy-efficient and high-performance semiconductors has intensified with the growing adoption of electric powertrains. Additionally, advancements in semiconductor technology are facilitating innovations in powertrain efficiency, allowing for regenerative braking, energy recovery, and overall optimization of electric vehicle performance. As governments worldwide implement stricter emission standards and incentivize electric mobility, semiconductor manufacturers are actively contributing to the development of powertrain solutions that support the electrification trend in passenger cars. The passenger cars segment is a dynamic and influential driver of the global automotive semiconductors market. The integration of advanced safety features, infotainment systems, connectivity solutions, and powertrain technologies underscores the significance of semiconductor components in shaping the future of passenger vehicles. Semiconductor manufacturers that focus on delivering reliable, energy-efficient, and high-performance solutions tailored to the evolving needs of the passenger cars segment are poised to play a crucial role in the ongoing transformation of the automotive industry.

 

Key market players in the Global Automotive Semiconductors Market are:-

  • Infineon Technologies AG
  • NXP Semiconductors N.V.
  • Renesas Electronics Corporation
  • Texas Instruments Incorporated
  • On Semiconductor Corporation
  • Robert Bosch GmbH
  • STMicroelectronics N.V.
  • Toshiba Corporation
  • ROHM Co., Ltd.
  • Denso Corporation 

 

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“The Global Automotive Semiconductors Market in Asia-Pacific is poised to be the dominant force in the industry. Asia Pacific, particularly countries like China, Japan, South Korea, and India, serves as a major production hub for leading automotive original equipment manufacturers (OEMs). The region accounts for a substantial portion of the global vehicle production, driving the demand for a wide range of automotive semiconductors. China, in particular, has emerged as the largest automotive market globally, and the growth of electric vehicles (EVs) and advanced driver-assistance systems (ADAS) in the country further intensifies the demand for semiconductor components.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“Automotive Semiconductors Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component Type (Micro-components, Analog IC, Discrete Power Device, Sensor, Memory Device and Logic IC), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Application Type (Powertrain, Safety, Body Electronics, Chassis and Telematics & Infotainment), By Region, and By Competition 2019-2029 has evaluated the future growth potential of Global Automotive Semiconductors Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Automotive Semiconductors Market.

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