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The automotive chip market share is expected to increase by USD 6.97 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.53%.
This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by vehicle type (passenger and commercial) and geography (APAC, Europe, North America, South America, and MEA). The market report also offers information on several market vendors, including Infineon Technologies AG, Maxim Integrated Products Inc., Microchip Technology Inc., Micron Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Renesas Electronics Corp., Robert Bosch GmbH, STMicroelectronics NV., and Texas Instruments Inc. among others.
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The increasing adoption of the engine control unit in vehicles is notably driving the market growth, although factors such as expensive and complex technology may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive chip industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Market Driver
The increasing adoption of engine control unit in vehicles is one of the key drivers supporting the market growth. The electronic control unit is basically a set of computer systems that controls and maintains the entire electronics, electrical, and mechanical systems of a vehicle. Increasing demand for alternative vehicle choices and governments? strict policy regulations on pollution control norms are transforming the powertrain technology of vehicles rapidly. The growing adoption of connected vehicle technology and advanced driver assistance systems (ADAS) is also another factor driving the demand for electronics in vehicles. It is expected that hybrid and pure electric vehicles and ADAS alone would contribute to over 45% of electronics in the car by 2030. Thus, the growing adoption of ECUs will fuel the demand for automotive chips during the forecast period.
Key Market Trend
The development of autonomous vehicles is another factor supporting the market growth. These cars are equipped with several wired and wireless communication protocols and many semiconductor devices. For instance, in July 2021, Waymo, the autonomous vehicle company of Alphabet Inc., announced its plan to invest around $2.5 billion in the development of its autonomous driving technology. Similarly, in April 2021, Nvidia Corp. launched Drive Atlan, an AI-enabled system-on-chip platform for autonomous vehicles. The chip combines a central processing unit (CPU), a graphics processing unit (GPU), and a data processing unit (DPU) on it that utilizes deep learning, machine vision accelerators, and Ampere-Next GPU resources to deliver 1,000 trillion operations per second (TOPS). Such instances will drive market growth during the forecast period.
Key Market Challenge
The expensive and complex technology are some of the factors hindering the market growth. Prices of semiconductor chips have been increasing since the last quarter of 2020 amid a global supply crunch. For instance, in September 2021, Taiwan Semiconductor Manufacturing Company (TSMC) announced its intention to increase the prices of most advanced chips by roughly 10%; less advanced chips would cost about 20% more. Thus, consumers would be paying more for chips from 2022 as foundries are increasing the prices of semiconductor chips by 20%. The prices of chips are expected to rise due to shortages in production capacity in comparison to their demand. Thus, the increasing prices of automotive chips will increase the net cost of automobiles. These issues and procedural complexities discourage chipset vendors from manufacturing chipsets, which poses a challenge to the market.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the automotive chip market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the automotive components and accessories market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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53% of the market's growth will originate from APAC during the forecast period. China, Japan, and South Korea (Republic of Korea) are the key markets for automotive chips in APAC. Market growth in this region will be slower than the growth of the market in North America.
The increasing disposable income and the launch of new car models by OEMs will facilitate market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
Manufacturing and industrial activities in APAC were adversely impacted in 2020 by the COVID-19 pandemic. However, industrial sectors such as automobile and manufacturing are expected to recover soon, with the declining number of COVID-19 cases in the region. Therefore, the expected resumption of various manufacturing and industrial activities will positively impact the growth of the regional market during the forecast period.
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The market share growth by the passenger segment will be significant during the forecast period. The high volume sales of passenger cars across the globe are driving the growth of the segment. The segment witnessed high adoption of new technologies that enhance the comfort, convenience, and safety of vehicles. For instance, premium audio systems, which were earlier limited to the luxury cars segment, are now available in many mid-range car models. Owing to the above-mentioned factor, the demand for automotive chips is increasing in the passenger cars segment.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post COVID-19 impact on each segment.
Automotive Chip Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 4.53%
Market growth 2021-2025
$ 6.97 billion
YoY growth (%)
APAC, Europe, North America, South America, and MEA
Performing market contribution
APAC at 53%
Key consumer countries
China, US, Japan, Germany, and South Korea (Republic of Korea)
Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled
Infineon Technologies AG, Maxim Integrated Products Inc., Microchip Technology Inc., Micron Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Renesas Electronics Corp., Robert Bosch GmbH, STMicroelectronics NV., and Texas Instruments Inc.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
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***1. Executive Summary
***2. Market Landscape
**2.1 Market ecosystem
*Exhibit 01: Parent market
*Exhibit 02: Market characteristics
**2.2 Value chain analysis
*Exhibit 03: Value Chain Analysis: Automotive components and accessories
*2.2.2 Inbound logistics
*2.2.4 Distribution and logistics
*2.2.5 Marketing and sales
*2.2.7 Industry innovations
***3. Market Sizing
**3.1 Market definition
*Exhibit 04: Offerings of vendors included in the market definition
**3.2 Market segment analysis
*Exhibit 05: Market segments
**3.3 Market size 2020
**3.4 Market outlook: Forecast for 2020 - 2025
*Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ million)
*Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)
***4. Five Forces Analysis
**4.1 Five Forces Summary
*Exhibit 08: Five forces analysis 2020 & 2025
**4.2 Bargaining power of buyers
*Exhibit 09: Bargaining power of buyers
**4.3 Bargaining power of suppliers
*Exhibit 10: Bargaining power of suppliers
**4.4 Threat of new entrants
*Exhibit 11: Threat of new entrants
**4.5 Threat of substitutes
*Exhibit 12: Threat of substitutes
**4.6 Threat of rivalry
*Exhibit 13: Threat of rivalry
**4.7 Market condition
*Exhibit 14: Market condition - Five forces 2020
***5. Market Segmentation by Vehicle Type
**5.1 Market segments
*Exhibit 15: Vehicle Type - Market share 2020-2025 (%)
**5.2 Comparison by Vehicle Type
*Exhibit 16: Comparison by Vehicle Type
**5.3 Passenger - Market size and forecast 2020-2025
*Exhibit 17: Passenger - Market size and forecast 2020-2025 ($ million)
*Exhibit 18: Passenger - Year-over-year growth 2020-2025 (%)
**5.4 Commercial - Market size and forecast 2020-2025
*Exhibit 19: Commercial - Market size and forecast 2020-2025 ($ million)
*Exhibit 20: Commercial - Year-over-year growth 2020-2025 (%)
**5.5 Market opportunity by Vehicle Type
*Exhibit 21: Market opportunity by Vehicle Type
***6. Customer landscape
*Technavio’s customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria
*Exhibit 22: Customer landscape
***7. Geographic Landscape
**7.1 Geographic segmentation
*Exhibit 23: Market share by geography 2020-2025 (%)
**7.2 Geographic comparison
*Exhibit 24: Geographic comparison
**7.3 APAC - Market size and forecast 2020-2025
*Exhibit 25: APAC - Market size and forecast 2020-2025 ($ million)
*Exhibit 26: APAC - Year-over-year growth 2020-2025 (%)
**7.4 Europe - Market size and forecast 2020-2025
*Exhibit 27: Europe - Market size and forecast 2020-2025 ($ million)
*Exhibit 28: Europe - Year-over-year growth 2020-2025 (%)
**7.5 North America - Market size and forecast 2020-2025
*Exhibit 29: North America - Market size and forecast 2020-2025 ($ million)
*Exhibit 30: North America - Year-over-year growth 2020-2025 (%)
**7.6 South America - Market size and forecast 2020-2025
*Exhibit 31: South America - Market size and forecast 2020-2025 ($ million)
*Exhibit 32: South America - Year-over-year growth 2020-2025 (%)
**7.7 MEA - Market size and forecast 2020-2025
*Exhibit 33: MEA - Market size and forecast 2020-2025 ($ million)
*Exhibit 34: MEA - Year-over-year growth 2020-2025 (%)
**7.8 Key leading countries
*Exhibit 35: Key leading countries
**7.9 Market opportunity by geography
*Exhibit 36: Market opportunity by geography
***8. Drivers, Challenges, and Trends
**8.1 Market drivers
*8.1.1 Increasing adoption of engine control unit in vehicles
*8.1.2 Growing focus on vehicle safety system
*8.1.3 Rising trend of vehicle electrification
**8.2 Market challenges
*8.2.1 Expensive and complex technology
*8.2.2 Network challenges in developing nations
*8.2.3 Risk of operational failure
*Exhibit 37: Impact of drivers and challenges
**8.3 Market trends
*8.3.1 Development of autonomous vehicles
*8.3.2 Increasing awareness regarding shared connectivity and mobility
*8.3.3 Increasing sales of ultra-luxurious vehicles
***9. Vendor Landscape
**9.1 Vendor landscape
*Exhibit 38: Vendor landscape
**9.2 Landscape disruption
*The potential for the disruption of the market landscape was moderate in 2020, and its threat is expected to remain unchanged by 2025.
*Exhibit 39: ?Landscape disruption?
*Exhibit 40: Industry risks
***10. Vendor Analysis
**10.1 Vendors covered
*Exhibit 41: Vendors covered
**10.2 Market positioning of vendors
*Exhibit 42: Market positioning of vendors
**10.3 Infineon Technologies AG
*Exhibit 43: Infineon Technologies AG - Overview
*Exhibit 44: Infineon Technologies AG - Business segments
*Exhibit 45: Infineon Technologies AG - Key offerings
*Exhibit 46: Infineon Technologies AG - Segment focus
**10.4 Maxim Integrated Products Inc.
*Exhibit 47: Maxim Integrated Products Inc. - Overview
*Exhibit 48: Maxim Integrated Products Inc. - Business segments
*Exhibit 49: Maxim Integrated Products Inc. - Key offerings
**10.5 Microchip Technology Inc.
*Exhibit 50: Microchip Technology Inc. - Overview
*Exhibit 51: Microchip Technology Inc. - Business segments
*Exhibit 52: Microchip Technology Inc. – Key news
*Exhibit 53: Microchip Technology Inc. - Key offerings
*Exhibit 54: Microchip Technology Inc. - Segment focus
**10.6 Micron Technology Inc.
*Exhibit 55: Micron Technology Inc. - Overview
*Exhibit 56: Micron Technology Inc. - Business segments
*Exhibit 57: Micron Technology Inc. - Key offerings
*Exhibit 58: Micron Technology Inc. - Segment focus
**10.7 NVIDIA Corp.
*Exhibit 59: NVIDIA Corp. - Overview
*Exhibit 60: NVIDIA Corp. - Business segments
*Exhibit 61: NVIDIA Corp. - Key offerings
*Exhibit 62: NVIDIA Corp. - Segment focus
**10.8 NXP Semiconductors NV
*Exhibit 63: NXP Semiconductors NV - Overview
*Exhibit 64: NXP Semiconductors NV - Business segments
*Exhibit 65: NXP Semiconductors NV – Key news
*Exhibit 66: NXP Semiconductors NV - Key offerings
**10.9 Renesas Electronics Corp.
*Exhibit 67: Renesas Electronics Corp. - Overview
*Exhibit 68: Renesas Electronics Corp. - Business segments
*Exhibit 69: Renesas Electronics Corp. - Key news
*Exhibit 70: Renesas Electronics Corp. - Key offerings
*Exhibit 71: Renesas Electronics Corp. - Segment focus
**10.10 Robert Bosch GmbH
*Exhibit 72: Robert Bosch GmbH - Overview
*Exhibit 73: Robert Bosch GmbH - Business segments
*Exhibit 74: Robert Bosch GmbH– Key news
*Exhibit 75: Robert Bosch GmbH - Key offerings
*Exhibit 76: Robert Bosch GmbH - Segment focus
**10.11 STMicroelectronics NV.
*Exhibit 77: STMicroelectronics NV. - Overview
*Exhibit 78: STMicroelectronics NV. - Business segments
*Exhibit 79: STMicroelectronics NV – Key news
*Exhibit 80: STMicroelectronics NV. - Key offerings
*Exhibit 81: STMicroelectronics NV. - Segment focus
**10.12 Texas Instruments Inc.
*Exhibit 82: Texas Instruments Inc. - Overview
*Exhibit 83: Texas Instruments Inc. - Business segments
*Exhibit 84: Texas Instruments Inc. - Key offerings
*Exhibit 85: Texas Instruments Inc. - Segment focus
**11.1 Scope of the report
*11.1.1 ????Market definition
*11.1.3 ????Notes and caveats
**11.2 Currency conversion rates for US$
*Exhibit 86: ?Currency conversion rates for US$?
**11.3 Research Methodology
*Exhibit 87: ?Research Methodology
*Exhibit 88: ??Validation techniques employed for market sizing?
*Exhibit 89: ??Information sources
**11.4 List of abbreviations
*Exhibit 90: List of abbreviations
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
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