Enjoy complimentary customisation on priority with our Enterprise License!
The automotive semiconductor market size is estimated to grow by USD 31.29 billion, at a CAGR of 9.45% between 2023 and 2028. Market expansion hinges on several pivotal factors. Firstly, there's a notable wave in the adoption of automotive advanced driver assistance system (ADAS) in vehicles, enhancing safety and convenience for drivers. Secondly, the increasing electrification trend in vehicles, driven by environmental concerns and technological advancements, contributes significantly to market growth. Lastly, governing bodies mandating stringent safety regulations further drive the market forward, ensuring that vehicles meet standardized safety requirements. These factors collectively underscore the transformative trajectory of automotive services, where innovation, sustainability, and regulatory compliance intersect to shape the future of mobility.
To learn more about this market report, View Report Sample
The automotive semiconductor market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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.
Get a glance at the market contribution of various segments. View the PDF Sample
The telematics and infotainment segment was valued at USD 14.69 billion in 2018. 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, 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. These factors will boost segment growth during the forecast period.
For more insights on the market share of various regions, Download PDF Sample now!
APAC is estimated to contribute 64% 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 infotainment technologies is accelerating in APAC across all vehicle segments (entry, mid, and luxury). The major nations that are anticipated to fuel 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 automotive technologies and cutting-edge solutions.
Further, 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 rise 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 regional automotive semiconductor market growth during the forecast period.
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 automotive semiconductor market growth 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 automotive semiconductor market growth and trends 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 automotive semiconductor market growth during the forecast period.
The automotive semiconductor market research report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the automotive semiconductor market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
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 automotive semiconductor market forecasting 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.
In addition, solar powered vehicles and electric vans, along with plug-in hybrid cars, represent the forefront of eco-friendly transportation solutions. Software-driven electronic components and on-board infotainment systems are becoming standard features in modern vehicles, enhancing both safety and entertainment. Luxury components are elevating the driving experience, while efforts to mitigate harmful exhaust emissions are driving the adoption of advanced semiconductor solutions. However, the industry faces challenges such as evasion and poisoning attacks on vehicle networks. Microprocessors, image sensors, cable harnesses, and network systems form the backbone of automotive electronics, supported by analog and logic ICs and power devices. Hatchbacks, SUVs, and MUVs cater to diverse consumer preferences, powered by gasoline engines or electric propulsion systems. Cell phones, GPS receivers, and vehicle diagnostics enable seamless connectivity and maintenance, while automobile production units continue to innovate in line with evolving market demands.
Market Scope |
|
Report Coverage |
Details |
Page number |
193 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.45% |
Market Growth 2024-2028 |
USD 31.29 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.42 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 64% |
Key countries |
China, US, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 International N.V., Texas Instruments Inc., and Toshiba Corp. |
Market dynamics |
Parent market growth 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 market forecast period. |
Customization purview |
If our automotive semiconductor market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this automotive semiconductor market research and growth report to meet your requirements. Get in touch
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.