Global Automotive Semiconductor Market Insights Forecasts to 2032

• The Global Automotive Semiconductor Market Size was valued at USD 40.58 Billion in 2022.
• The Market Size is Growing at a CAGR of 8.3% from 2022 to 2032
• The Worldwide automotive semiconductor Market is expected to reach USD 90.07 Billion by 2032
• Europe is expected to Grow at a significant during the forecast period

The Global Automotive Semiconductor Market Size is expected to reach USD 90.07 Billion by 2032, at a CAGR of 8.3% during the forecast period 2022 to 2032.

Market Overview

Automotive semiconductors play a crucial role in the modern automotive industry, driving advancements in vehicle safety, efficiency, and connectivity. These specialized electronic components are designed to meet the demanding requirements of automotive applications. They enable various functionalities, including engine control, advanced driver-assistance systems (ADAS), infotainment systems, and electric vehicle powertrain management. Automotive semiconductors provide high-performance computing capabilities, robust communication interfaces, and efficient power management. They are built to withstand harsh automotive environments, such as extreme temperatures, vibrations, and electromagnetic interference. As vehicles become increasingly complex and connected, automotive semiconductors continue to evolve, enabling advancements in autonomous driving, vehicle-to-vehicle communication, and enhanced user experiences. The development and deployment of automotive semiconductors are crucial for the ongoing transformation of the automotive industry.

Report Coverage

This research report categorizes the market for automotive semiconductor market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the automotive semiconductor market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the automotive semiconductor market.

Driving Factors

The automotive semiconductor market is driven by several key factors due to increasing demand for advanced driver-assistance systems (ADAS) and autonomous driving technologies is propelling the need for sophisticated semiconductors that enable these functionalities. The rise of electric vehicles (EVs) is driving the demand for power semiconductors for efficient energy management and electric powertrain control. The growing consumer demand for in-vehicle connectivity and infotainment systems necessitates the use of semiconductors with robust communication capabilities. Additionally, stringent government regulations regarding vehicle safety and emission standards drive the adoption of automotive semiconductors. Moreover, the proliferation of connected car technologies and the Internet of Things (IoT) in the automotive industry create opportunities for semiconductor integration in areas such as vehicle-to-vehicle (V2V) communication and cybersecurity. Overall, the ongoing trend of vehicle electrification and the development of autonomous driving technologies are expected to further fuel the demand for automotive semiconductors in the coming years.

Restraining Factors

The automotive semiconductor market also faces certain restraints due to the high cost of automotive semiconductors and their integration into vehicles can pose a challenge for mass adoption, especially in price-sensitive markets. The complexity of automotive semiconductor design and manufacturing requires specialized expertise, which can limit the availability of skilled resources. The automotive industry's long product development cycles and stringent testing and certification processes can slow down the adoption of new semiconductor technologies. Additionally, supply chain disruptions, such as the global semiconductor shortage, can hinder the availability of automotive semiconductors, impacting production volumes. Overall, concerns regarding data privacy, cybersecurity, and regulatory compliance in connected vehicles pose challenges for semiconductor integration in automotive applications.

Market Segmentation

• In 2022, the others segment accounted for around 28.9% market share

On the basis of the component type, the global automotive semiconductor market is segmented into processor, discrete power, sensor, memory, and others. The other component segment, comprising analog integrated circuits (ICs) and logic ICs, has emerged as the largest revenue contributor in the automotive semiconductor market. This segment's dominance can be attributed to several factors due to analog ICs play a vital role in converting and processing various types of signals in automotive systems, such as temperature, pressure, and voltage. They are widely used in applications like power management, motor control, and audio systems. The logic ICs are essential for controlling and coordinating the operation of different electronic components within the vehicle, including microcontrollers, sensors, and actuators. They enable critical functionalities like engine control, safety systems, and communication interfaces. Moreover, the increasing complexity of automotive electronics, driven by the adoption of advanced features and connectivity, has boosted the demand for analog and logic ICs. With the growing emphasis on electrification, connectivity, and autonomous driving, the other component segment is expected to maintain its dominant position in the automotive semiconductor market.

• In 2022, the passenger vehicle segment dominated with more than 57.2% market share

Based on the vehicle type, the global automotive semiconductor market is segmented into passenger vehicle, light commercial vehicle, and heavy commercial. The passenger vehicles segment has captured the largest market share in the automotive semiconductor market. This can be attributed to several factors because passenger vehicles have a higher volume of production and sales compared to other vehicle types, such as commercial vehicles or off-highway vehicles. This high volume creates a significant demand for automotive semiconductors. The increasing consumer demand for advanced features, safety systems, and infotainment in passenger vehicles drives the need for semiconductors that enable these functionalities. Additionally, passenger vehicles are at the forefront of technological advancements, including electric and autonomous vehicles, which rely heavily on automotive semiconductors. As a result, the passenger vehicles segment continues to be a major driver of growth in the automotive semiconductor market, emphasizing the importance of semiconductors in enhancing the driving experience and safety for passengers.

Regional Segment Analysis of the Automotive Semiconductor Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia-Pacific dominated the market with more than 38.7% revenue share in 2022.

Based on region, the Asia Pacific region has emerged as the dominant player in the automotive semiconductor market. Several factors contribute to its market dominance due to this region is home for some of the world's largest automotive manufacturers, leading to high demand for automotive semiconductors. Countries like China, Japan, and South Korea have a strong automotive industry and are key players in semiconductor production. The rising middle-class population in the region has led to increased vehicle ownership and demand for advanced automotive features, driving the need for semiconductors. The Asia Pacific region has witnessed significant investments in research and development, leading to technological advancements in automotive semiconductors. Additionally, favorable government policies, incentives for electric vehicles, and infrastructure development have further boosted the growth of the automotive semiconductor market in the region. The Asia Pacific's dominance in the market is expected to continue due to its favorable market conditions and robust automotive industry.

Recent Developments

In May 2022, Continental, a German company, expanded its extensive sensor portfolio by introducing two novel sensors designed specifically for electrified vehicles. The recently launched Current Sensor Module (CSM) and Battery Impact Detection (BID) system aim to safeguard the battery and preserve critical battery parameters. These innovative solutions further enhance Continental's offerings in the realm of electric vehicle protection and ensure optimal battery performance and longevity.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global automotive semiconductor market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Companies:

• 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

Key Target Audience

• Market Players
• Investors
• End-Users
• Government Authorities 
• Consulting and Research Firm
• Venture Capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global automotive semiconductor market based on the below-mentioned segments:

Automotive Semiconductor Market, By Component

• Processor
• Discrete Power
• Sensor
• Memory
• Others

Automotive Semiconductor Market, By Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicle
• Heavy Commercial

Automotive Semiconductor Market, By Application

• Chassis
• Powertrain
• Safety
• Telematics & Infotainment
• Body Electronics

Automotive Semiconductor Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa