Automotive Semiconductor Market Size, Share & COVID-19 Impact Analysis, By Component (Processor, Analog IC, Discrete Power Device, Sensor, Memory Device and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion (ICE and Electric), By Application (Powertrain, Safety, Body Electronics, Chassis and Telematics & Infotainment), and Regional Forecasts, 2022-2029

The global automotive semiconductor market size was valued at USD 53.06 billion in 2021. The market is projected to grow from USD 59.22 billion in 2022 to USD 103.85 billion by 2029, exhibiting a CAGR of 8.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with automotive semiconductor experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -8.7% in 2020 as compared to 2019.

The Increasing hybrid electric and electric vehicle sales and the development of highly autonomous driving vehicles to increase safety are one of the primary factors driving the automotive semiconductor market growth. Besides, increasing electronic content in automotive and growing digital connectivity in vehicles will also boost automotive semiconductor adoption.

Furthermore, rapid automotive semiconductor technological advancements are likely to propel market growth. For example, Infineon Technologies launched a new AURIX TC4x family of 28 nm microcontrollers (MCUs) for eMobility, ADAS, automotive E/E architectures, and affordableArtificial Intelligence (AI)applications in January 2022. Also, in October 2021, Infineon Technologies AG introduced the SLI37 automotive security controller, an easy to design and reliable trust anchor to secure safety-critical automotive applications like 5G-ready eUICC (eCall), V2X communication, car access, or SOTA updates.

Moreover, the increased manufacturing of automobiles in several countries has consequently aided market growth. While around 80 million automobiles were manufactured globally in the previous year 2021, the graph is expected to trend upward over the projected period, favorably benefiting the global automotive semiconductor industry.

COVID-19 IMPACT

Sales of Vehicles Were Heavily Affected as the COVID-19 Pandemic Impacted the Market Growth

The companies involved in value chain including suppliers, tier 1 & 2 suppliers, manufacturers, aftermarket players, among others have seen decline in their revenues due to the effect of COVID-19. However, the major governments actively looked into the situation to overcome the immense effect to be predicted for the overall auto industry. Moreover, many regional governments & companies adopted robust polices & other safety norms to avoid the spread of COVID-19. Lockdown has disturbed the overall automotive semiconductor market outlook.

Although, the recovery of the automotive industry in 2021 was quicker than expectations. This is due to increasing demand for new vehicles among customers. However, the shortage of automotive semiconductor chips, supply chain disturbance, and delay in production due to shortages have directly contributed to a severe loss of revenue for semiconductor manufacturers during the pandemic.

In addition, the future of the automotive industry i.e., electric mobility is predicted to grow prominently during forecast period. For instance, As per International Energy Agency (IEA), electric vehicle sales are estimated to reach around 145 million on road by 2030 globally. This is due to favorable government polices implementation, and local & international players’ innovation, and marketing reach to grow their business in developing as well as developed countries.

LATEST TRENDS

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Increasing Integration of Artificial Intelligence in Vehicle to Set a Positive Trend for the Market Growth

The automotive industry is increasingly using semiconductors to support vehicle AI to mimic, augment, and support the actions of humans while simultaneously leveraging the advanced reaction times and pinpointing precision in machine-based systems. In the latest self-driving vehicles, AI is used to make the car easier, more convenient, and safer for both passengers & drivers. Moreover, without human interaction and with the use of advanced machine learning techniques,Natural Language Processing (NLP), and equipped in-car assistants allow the vehicle’s systems to respond to voice commands and infer actions to take in the vehicle.

Despite the technological potential of autonomous vehicles and in-car assistants, an abundance of caution relating to safety concerns, and a desire to ensure that users enjoy a smooth and glitch-free experience, these AI systems will likely be deployed gradually through smart automotive semiconductors. Thus, the increasing integration of artificial intelligence in vehicles is one of the leading trends supporting the global market growth of automotive semiconductor.

DRIVING FACTORS

Rising Hybrid Electric and Electric Vehicle Adoption to Foster Market Progress

Electric and hybrid vehicles demand is increasing exponentially alongside vehicles with typical IC engines due to strict emission rules such as favorable government subsidies & policies, Kyoto protocol, benefits on hybrid electric vehicle and battery purchase, rising awareness regarding harmful environmental effects of diesel and petrol powered vehicles, and others. For example, according to the PWC report’s information, the global battery electric vehicle battery sales’ (processors) grew by 121% in 2021 in compared with the previous year, and China led the market with nearly three billion processors, by 172% compared to 2020. Moreover, newelectric vehicleregistration in Germany, U.S., and U.K. witnessed a spike of 83%, 76%, and 62% respectively in 2021. Also, as per the information provided by BloombergNEF, the global commercial and passenger ZEV fleet worldwide may reach 677 billion vehicles by 2040. Likewise, according to new data from BloombergNEF, plug-in hybrids and battery-electric made 7.2% of car sales globally in 2021, compared to 2.6% in 2019 and 4.3% in 2020. Companies are actively involved in EVs mass production. For example, Ford, General Motors, and other automakers announced that all zero-emission car sales shall witness strong growth by 2040.

因此,对汽车半导体公司的需求reased as EVs require several controls and sensors, ensuring efficient engine operation and substantial improvements can be realized with increased application of semiconductors. At the same time, microcontrollers, ICs, and other semiconductor modules are required due to the increased adoption of hybrid & battery electric vehicles particularly in terms of powertrain electrification. The release of hybrid and electric vehicles requires a greater proportion of semiconductors for their manufacturing counterparts when compared to traditional internal combustion engine vehicles. For example, conventional vehicles require USD 330 value of semiconductor content while hybrid electric vehicles need USD 1,000 worth of semiconductor content value. Therefore, increased adoption of electric and hybrid vehicles is anticipated to surge the demand for automotive semiconductor which, in turn, accelerates the growth of the market.

Increasing Electronic Content in Automotive to Support the Market Growth

The automobile industry has been moving at a steady pace to integrate electronics into cars in innovative ways to augment safety (radar and collision avoidance, automatic braking), infotainment (satellite radio and Bluetooth), navigation (GPS mapping), system monitoring, onboard computers, and many others, including emerging self-driving cars. This has resulted in a significant increase in demand for electronic components.

The use of semiconductor content in electric and hybrid cars is higher compared to that in conventional cars. Hybrid and electric vehicles need various components such as application-specific integrated circuits, high-performance microcontrollers, power MOSFETs, microprocessors, and others. Thus, the increasing electronic content in automotive provides lucrative growth opportunities for the market.

RESTRAINING FACTORS

Security Risk and High Costs are Key Restraints for the Growth of the Market

A failing component can negatively affect the vehicle performance. Component processors, including microprocessors, and SoCs are complex and most of the interlinked controls affect each other. Hence, even if one component fails or is tampered with, it can lead to in-operation of the vehicle. Cars with MCU controlled features largely do not have secondary backups as a way to compensate for human error owing to the excess cost burden. Hence, a faulty MCU can pose a significant safety risk in crucial applications. Running diagnostics is required to ensure that a complexsemiconductorpart such as the SoC or MCU needs to be replaced or repaired. A replacement MCU then needs to be reprogrammed once it is installed, and further testing is required to ensure seamless operation with the vehicle.

These services incur additional labor costs. Furthermore, repairing an MCU is highly precise and technical work. It involves disassembling the module itself, running diagnostics, and performing critical electronics and circuitry work, which requires specially trained technicians. Furthermore, these components are also highly susceptible to hacking and in case of a malicious attack can lead to failure to deliver critical information for systems such as crash avoidance, control braking, among others. Hence, these factors are restraining the growth of the market.

Varying Regulatory or Legal Challenges in Countries Across the World Expected to Hamper the Market Growth

Key players of automotive semiconductor are subject to different environmental, data privacy, labor, and health and safety laws & regulations in each country they are operating. Companies are also required to obtain environmental permits and other authorizations or licenses from governmental authorities for certain operations. Thus, there is need to comply with differing standards and varying practices of regulatory, tax, judicial, and administrative bodies. If companies violate or fail to comply with laws, regulations, permits, and other authorizations or licenses, players could be fined or otherwise sanctioned by regulators. Furthermore, if one or more customers or distributors are approved by regulators for non-compliance with laws and regulations, players could experience a decrease in demand for products.

For instance, import and export regulations, such as the U.S. Export Administration Regulations administered by the U.S. Department of Commerce, are complex, and becoming stringent. Thus, such factors may negatively impact the market if are required to suspend activities with certain customers or suppliers due to future changes in regulations. Furthermore, global privacy legislation, enforcement, and policy activity, such as the EU General Data Privacy Regulation, are rapidly expanding and creating a complex regulatory compliance environment. Therefore, the varying regulations or legal challenges across the world may hamper the growth of the market.

SEGMENTATION

By Component Analysis

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Increasing Electronic Components in Vehicles to Drive Processors Segment Growth

Based on component, the market is segmented into processor, analog IC, discrete power device, sensor, memory device, and others.

The processor segment held the largest market share in 2021 and is expected to continue its dominance during the forecast period. Increased use of electronics components in a vehicle is one of the primary factors driving the growth of the segment. However, discrete power devices segment is expected to registered the highest CAGR of 10.3% during the forecast period.

Memory devices are expected to be the second-fastest emerging segment. This expansion may be due to the continuing electrification of important automotive application, such as powertrain, which is increasing demand for power devices such as MOSFET and IGBT. The demand for improved vehicular safety and innovative features necessitates the addition of additional memory devices per car in order to program multiple control systems into an autonomous vehicle.

By Vehicle Type Analysis

Passenger Automobiles to Dominate Owing to Strong Adoption of Luxury Offerings in Vehicles from Companies

Based on vehicle type, the global market is segmented into passenger cars and commercial vehicles.

目前,2021年乘用车段受nated the market and is expected to lead the industry during the forecast period. The growth is attributable to the rising demand for passenger automobiles across the world. Furthermore, the adoption of automotive entertainment systems in passenger vehicles for hands-free phone connectivity and climate control, navigational services, voice control, two-way communication tools, parking assistance, and internet service is supporting sector expansion.

Thecommercial vehicle段可能在即将到来的见证增长最快years. Factors such as road infrastructure improvements, rapid urbanization, the expansion of e-commerce, and mining operations are likely to support the commercial vehicle sales. Moreover, leading commercial vehicle manufacturers are focusing on the development and introduction of various autonomous features in commercial vehicles to improve safety.

By Propulsion Analysis

Robust Demand for Electric and Hybrid Cars to Drive Segment Growth

Based on propulsion, the global market is segmented into ICE and electric.

The ICE segment led the market in 2021 and is likely to dominate by 2029 in terms of revenue. This is due to the significant production and sales of the Internal Combustion Engine (ICE) across the globe. In addition, various automobile manufacturers are installing various electronic components in ICE vehicles to increase safety and reduce emissions, which is also driving the growth of the segment.

The electric vehicle segment is anticipated to witness the fastest growth rate over the forecast period. Moreover, increasing fuel prices, increasing environmental concerns and low operating cost of electric cars may boost electric cars’ adoption. In addition, stringent emission rules on commercial vehicle adoption in major countries globally, may primarily boost the demand for electric commercial vehicles.

By Application Analysis

Stringent Regulations on Vehicular Safety to Drive Segmental Growth

Based on application, the global market is segmented into powertrain, safety, body electronics, chassis, and telematics & infotainment.

The safety segment held the largest market share in 2021 and is expected to continue its dominance over the forecast period. This is primarily due to the implementation of stringent regulations on vehicular safety, owing to increasing road accidents in various countries. To fulfill vehicle safety regulations, auto manufacturers use various safety-related features such as emergency braking systems andadvanced driver assistance systemsin vehicles. Such factors are driving the market growth.

The telematics & infotainment segment is anticipated to witness the fastest growth rate over the forecast period. Rising in-car connectivity and infotainment demand such as navigation systems, audio & video players, over-the-air updates, and smartphone connectivity are the key factor propelling the segment expansion. In addition, leading countries such as the U.S. and European countries mandate e-call services in vehicles, which is also fueling the segment growth.

REGIONAL INSIGHTS

Asia Pacific Automotive Semiconductor Market Size, 2021 (USD Billion)

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Asia Pacific dominated the global market by exhibiting a market share of USD 21.5 billion in 2021 and may maintain its market position throughout the upcoming years. The region is also expected to witness the highest CAGR during 2022-2029. The fastest growing automotive industry in countries such as China, India, Japan among others, along with the related government support for the expansion of the semiconductor industry across the region is driving the market growth. Moreover, strong demand for electric cars in China has bolstered the industry’s growth. Moreover, rising adoption of commercial electric vehicles in India, Japan, South Korea, and others may boost market growth in the near future. For example, as per the information provided by the China Passenger Car Association, the amount of passenger electric vehicles sales in China grew by 169.1% in 2021 reaching approximately USD 2.99 million in 2021.

North America may witness the highest growth rate after Asia Pacific. Increasing electric commercial and passenger vehicle sales in the U.S. may drive market growth. Moreover, increasing focus towards the commercialization and development of electric autonomous vehicles andRobo-taxiesmay offer lucrative growth opportunities during the upcoming years.

欧洲是快增长市场。我的ncreasing stringency on vehicular emission, rising support for electrification along with growing investment in autonomous vehicle innovations are boosting the market expansion in Europe.

The rest of the world may register considerable CAGR during the forecast period. Strong demand for battery powered-electric cars in Saudi Arabia, South Africa, UAE, Brazil and others is expected to foster industry growth. Further, increasing public charging infrastructure investments in Latin America and the Middle East may drive electric vehicle adoption, fueling market progress.

KEY INDUSTRY PLAYERS

Increasing Focus on Electric and Autonomous Vehicles’ Early Development to Fuel Competition

Major companies operating in the market deploy acquisitions, collaborations, and partnerships to expand their business and grab untapped opportunities in emerging markets. For example, NXP Semiconductors partnered with Hailo, a leading edge Artificial Intelligence chipmaker, in December 2021 to launch several joint AI solutions for automotive Electronic Control Units (ECUs). The joint solutions will combine NXP's safe and efficient automotive processors (S32G and Layerscape) along with the high-performance Hailo-8 AI processor. In November 2020, Infineon entered into an agreement with GT Advanced Technologies to expand its supply base forsilicon carbide (SiC)boules. SiC is the basis for power semiconductors that are particularly efficient, robust, and cost-effective at the system level. With this supply contract, the German semiconductor manufacturer adds a different element to secure its growing base material demand in this area.

Infineon Technologies AG is one of the Leading Players in the Market Owing to Productive Partnerships and Industry-Leading Products

Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal, and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, and RF power transistors, voltage regulators, and electronic safety components. Its headquartered in Neubiberg, Germany. Infineon's customers include major truck, automobile, and bus producers, such as Daimler AG, Koegel, Freightliner Trucks, Volvo, Schmitz, BharatBenz, Honda, PSA, Porsche, Toyota Renault, BMW Ford, General Motors, and Volkswagen. In addition, in April 2020, Infineon Technologies AG completed the acquisition of Cypress Semiconductor Corporation. Cypress adds a differentiated portfolio of microcontrollers, connectivity components, software ecosystems, and high-performance memories. The addition of Cypress’ strong R&D capabilities and its foothold in the U.S. and Japan strengthen Infineon’s connections with customers around the world.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH(Germany)


• Infineon Technologies AG (Germany)


• STMicroelectronics(Switzerland)


• NXP Semiconductors (Netherlands)


• Toshiba Corporation(Japan)


• On Semiconductor Corporation(U.S.)


• ROHM Co., Ltd. (Japan)


• Texas Instruments Incorporated (U.S.)


• Renesas Electronics Corporation (Japan)


• Denso Corporation (Japan)

关键行业的发展:

• January 2022:Infineon Technologies Announced a Novel AURIX TC4x family of 28 nm microcontrollers (MCUs)in January 2022, Infineon Technologies launched a new AURIX TC4x family of 28 nm microcontrollers (MCUs) for eMobility, ADAS, automotive E/E architectures and affordable AI applications.


• February 2022: STMicroelectronics has unveiled new automotive microcontrollers (MCUs) optimized for electric vehiclesFebruary 2022, STMicroelectronics unveiled new automotive microcontrollers (MCUs) designed for electric vehicles and centralized (zonal and domain) electronic architectures. STMicroelectronics’ new Stellar E MCUs, designed for next generation software-defined EVs, incorporate high-speed control-loop processing on-chip. With the new Stellar E devices, this platform enables a new value chain for EVs.


• June 2021:NXP Semiconductors N.V. company has launched two new S32Z and S32E processor families that extend innovation and accelerates integration of automotive applications for next generation vehicles with its diverse real-time applications for domain and zonal control, safety processing.


• June 2022,ROHM introduced a new regulator (LDO) ICs for primary (direct connection to 12V) power supplies in a wide range of applications, including powertrain, body, ADAS, and car infotainment which has stable operation at nanoscale output capacitance.


• February 2022,罗伯特•博世计划投资于半导体公关oduction facility in Reutlingen by considering the current chip shortage and rising demand used in mobility and IoT applications. New manufacturing facilities will be built between 2022 and 2025.

REPORT COVERAGE

An Infographic Representation of Automotive Semiconductor Market

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3月的报告提供了一个详细的分析ket and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the automotive semiconductor market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
By Component	Processor Analog IC Discrete Power Device Sensor Memory Device Others
By Vehicle Type	Passenger Cars Commercial Vehicles
By Propulsion	ICE Electric
By Application	动力系统 Safety Body Electronics Chassis Telematics & Infotainment
By Geography	North America (By Component, By Vehicle Type, By Propulsion Type, and By Application) U.S. (By Vehicle Type) Canada (By Vehicle Type) Mexico (By Vehicle Type) Europe (By Component, By Vehicle Type, By Propulsion Type, and By Application) U.K. (By Vehicle Type) Germany (By Vehicle Type) France (By Vehicle Type) Rest of Europe (By Vehicle Type) Asia Pacific (By Component, By Vehicle Type, By Propulsion Type, and By Application) China (By Vehicle Type) India (By Vehicle Type) Japan (By Vehicle Type) South Korea (By Vehicle Type) Rest of Asia Pacific (By Vehicle Type) Rest of the World (By Component, By Vehicle Type, By Propulsion Type, and By Application)