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The automotive semiconductor market size is estimated to grow by USD 26,676.35 million between 2022 and 2027. The market size is forecast to increase at a CAGR of 8.8%. The growth of the market depends on several factors, including the rising adoption of advanced driver assistance System (ADAS) features in vehicles, increasing electrification in vehicles, and governing bodies mandating safety regulations.
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The rising adoption of advanced driver assistance system (ADAS) features in cabs is notably driving the market growth, although factors such as lack of standard protocols may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of advanced driver assistance system (ADAS) features in automobiles is notably driving the market growth. The ADAS applications in automobiles have improved owing to the rapid adoption of advanced technologies such as processors, sensors, cameras, and software algorithms for mapping obstacles. In response to growing concerns about the security and safety of passengers, the governments of developing nations have also imposed strict safety standards on automotive manufacturers to develop automobiles equipped with ADAS features.
The Government of India, for instance, mandated that all vehicle segments have a co-driver airbag by August 31, 2021. Similarly, the European Commission mandated the installation of a vehicle telematics system in all new cars beginning in April 2018 in 2015. Hence, such factors are anticipated to drive the growth of the global market over the forecast period.
The increasing developments in semi-autonomous and autonomous vehicles is an emerging trend influencing market growth. Autonomous vehicles are automobiles that do not require a driver. It can operate with little to no human involvement and read and sense its surroundings. A significant revolution in automation and connectivity technologies has been brought about by self-driving cars. To assist and automate driving tasks, computers, the internet, smartphones, and cutting-edge technologies are being integrated with automobiles.
Several businesses are expanding their production capacities and raising the level of vehicle automation due to recent advances in sensor-processing technologies, superior planning, adaptive algorithms, and the sending of foundation-to-vehicle and vehicle-to-vehicle communication technologies. Furthermore, the growing use of autonomous vehicles is likely to lower the cost of maintaining automobiles, improve the comfort and convenience of transportation, and promote long commutes. Hence, such factors are expected to drive the growth of the global market during the forecast period.
The lack of standard protocols is a major challenge impeding market growth. One of the biggest problems in the automotive industry is the lack of standardized protocols. Both new and existing products are impacted by the burden of numerous regulations. Numerous governmental regulations that limit the creativity of engineers and designers control the manufacturing of automobiles. These standards' primary goals are to improve on-road passenger and driver safety and lower the risk of theft. They also regulate how cars affect the environment.
Each nation or region has its own set of rules. This suggests that automakers should modify their production practices to distribute their goods in various markets around the world. Due to the need to set up new assembly lines, manufacturers suffer financial losses as a result of the changing protocols in each nation. For instance, most cars are left-hand drive in North America and right-hand drive in Asia. Thus, such factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Microchip Technology Inc. - The company offers PIC, AVR, and SAM arm-based microcontrollers which are used for applications related to touch sensing, car access, and connectivity solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the telematics and infotainment segment will be significant during the forecast period. One of the most essential and fundamental parts of automotive telematics and infotainment systems is automotive semiconductors. Most manufacturers and suppliers have recently been leaning toward enhancing passenger safety in automobiles.
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The telematics and infotainment segment was valued at USD 13,874.10 million in 2017 and continued to grow until 2021. With the aid of onboard diagnostic systems and GPS, vehicle telematics combines telecommunications and information technology to track the locations and motion of automobiles. It offers the occupants of the car services like navigation, safety, and security. To ensure adequate transportation and logistics, to track the location and behavior of automobiles, and for fleet management purposes, vehicle insurance companies and fleet management firms have widely adopted this system. The development of the overall telematics and infotainment segment is being aided by the incorporation of real-time fleet monitoring systems, improved fleet efficiency, reduced fuel consumption, and the use of cloud computing technology in automobiles. Thus, such factors will boost the market segment growth during the forecast period.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The adoption of automotive technologies is accelerating in APAC across all vehicle segments (entry, mid, and luxury). The major nations that are anticipated to propel the expansion of the APAC market during the forecast period are China, Japan, South Korea, and India. The main drivers of the growth of the market in APAC are the expanding presence of automotive manufacturers and the rising adoption of cutting-edge solutions.
Consumers' disposable income has increased as a result of the economic expansion of developing nations like China and India, which has increased demand for passenger cars with cutting-edge automotive components. More specifically in these nations, a surge in demand for high-end cars with infotainment systems is anticipated to support the expansion of the APAC market. The region's demand for luxury vehicles has been primarily fueled by an increase in the number of high-net-worth individuals (HNWI) living in China over the past ten years. For instance, it was predicted that there would be over 1.5 million HNWIs in China by 2020. Such factors will boost the regional market growth during the forecast period.
The Global Automotive Semiconductor Market drives innovation in connected cars, addressing fuel efficiency standards and the rise of electric and hybrid vehicles. ADAS plays a vital role in enhancing safety, with crash avoidance technology and automatic emergency braking systems gaining prominence. Key technologies include Neon and Hexafluorobutadiene gas in the lithography process, powering components like MOSFETs and BLDC motors. Passenger and commercial vehicles benefit from advancements in body electronics, telematics, and infotainment, enhancing safety, comfort, and entertainment options in modern vehicles.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.8% |
Market growth 2023-2027 |
USD 26,676.35 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.89 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 62% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allegro MicroSystems Inc., Analog Devices Inc., BorgWarner Inc., Continental AG, DENSO Corp., Elmos Semiconductor AG, Infineon Technologies AG, Intel Corp., Microchip Technology Inc., Micron Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp., Qualcomm Inc., Renesas Electronics Corp., Robert Bosch GmbH, ROHM Co. Ltd., Samsung Electronics Co. Ltd., STMicroelectronics NV, Texas Instruments Inc., and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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