Automotive Semiconductor Market Set to Witness an Uptick during 2023 to 2030Posted by Mrudula Anil Karmarkar on November 20th, 2023 San Francisco, 20 November 2023: The ReportAutomotive Semiconductor MarketSize, Share & Trends Analysis Report By Component (Processor, Sensor), By Vehicle Type (Passenger Vehicle, LCV, HCV), By Application, By Region, And Segment Forecasts, 2023 - 2030 The global automotive semiconductor market is expected to reach USD 77.76 billion by 2030, growing at a CAGR of 8.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. Growing focus on vehicle safety systems and a significant increase in the adoption of engine control units (ECUs) in modern automobiles are anticipated to drive demand for automotive semiconductors. Moreover, emerging technologies such as 5G and IoT are expected to play an instrumental role in increasing the demand for automotive semiconductors. Additionally, electric vehicles and all levels of assisted driving technologies are expected to create considerable growth opportunities in the automotive semiconductor market over the forecast period. Electrification in the automotive industry is growing rapidly owing to the rising need to reduce carbon emissions. Having realized the importance of electric vehicle business opportunities, several manufacturers are increasingly investing in smart technologies, electronics, and safety systems. Such components of electric vehicles comprise semiconductors equipped with advanced technologies to improve the functionalities of smart electronics. For instance, the application of shock sensors, MEMS accelerometers, MEMS gyroscopes, inertial sensors, tilt sensors, and MEMS microphones for rollover detection, electronic braking, dynamic head lighting, inertial navigation, and airbag safety systems. Hence, as the demand for hybrid and electric vehicles increases, the need for semiconductors is anticipated to increase over the forecast period. Safety guidelines and regulations imposed by governments are expected to play a key role in driving demand in the North American and European automotive semiconductor markets. For instance, a special focus on accident avoidance through ADAS is expected to help drive the automotive semiconductor market growth in countries across these regions. Asia Pacific, led by China, is projected to emerge as the fastest-growing automotive market owing to rapid EV adoption and strong government support. The Russia-Ukraine war had a significant impact on the automotive semiconductor market in Europe, primarily due to disruptions in the supply chain of critical components. Europe is a significant market for automotive semiconductors, with several leading automakers based in the region. The conflict between Russia and Ukraine has disrupted the supply chain of critical components, leading to shortages and price hikes. For instance, according to data released in 2022 by the International Energy Agency (IEA) stated that the price of lithium increased by two and a half times in 2021 along with cobalt, nickel, aluminum, and copper, which also witnessed an uptrend in the price due to the impact of Russia-Ukraine war. Request sample report of Automotive Semiconductor Market@https://www.grandviewresearch.com/industry-analysis/automotive-semiconductors-market/request/rs1 Increasing penetration of electronic components in luxury to mass-produced cars, increasing adoption of electronic control unit (ECU) in modern vehicles, and growing focus on safety systems in vehicles is expected to lead to steady growth of the market over the next few years. The other factors contributing to the growth of the market include the proliferation of connected cars, infotainment systems, automotive safety systems, and fuel efficiency standards. The growing demand for electric and hybrid vehicles presents a significant opportunity for the automotive semiconductor market. These vehicles require semiconductors for devices such as ADAS and ECUs to manage the battery, motor, and other components, which creates a demand for sophisticated and specialized semiconductors in the automotive semiconductor market. These developments in the market are likely to impact the supply chain, aftermarket, and manufacturers of semiconductor electronic components. As a result, conventional diagnostic systems may be replaced by onboard diagnostic systems to enable the continuous monitoring of the condition of a vehicle's mechanical and electrical components. Automotive Semiconductor Market Report Highlights
As per a report published by the autonomous intergovernmental organization, International Energy Agency (IEA), EVs play an integral role in curbing carbon emissions. Moreover, the adoption of electric vehicles grew by 13% globally in 2022 compared to 2020. Three key trends - namely autonomy, electrification, and connected mobility - are expected to emerge as major revenue drivers for the global automotive semiconductor market. These trends play a pivotal role in driving the demand for electronic components in a car, subsequently driving the demand for semiconductors in the automotive space. According to the World Health Organization, approximately there were 1.24 million casualities of individuals as a result of road traffic crashes each year. This has triggered an increased focus on the prevention of accidents through the implementation of active safety measures. As a result, active safety features are increasingly being integrated into vehicles to help avoid collisions and accidents. Amongst the vehicle safety provisions, crash avoidance technology, including automatic emergency braking systems, automatics driver assistance system (ADAS), for passenger vehicles, is set to remain a standard feature for majority of the new vehicles produced from 2022 to 2023. These technologies such as ADAS, emergency braking system among others uses sensors for monitoring changes in vehicle behaviour, and the semiconductor is a part of the senors. Thus, with the rise in the adoption of vehicle safety systems, the market for automotive semiconductors is expected to grow significantly over the forecast period. Automotive Semiconductor Market Report Scope
The Russia-Ukraine war has had some impact on the automotive semiconductor production, but it is not a direct cause-and-effect relationship. The automotive semiconductor industry has been facing a shortage of semiconductors globally due to several factors, including the COVID-19 pandemic and disruptions in the semiconductor supply chain. The Russia-Ukraine conflict has added to these disruptions in the global supply chain, which has affected the automotive semiconductor production. The Minister of State for Electronics and Information Technology in the Government of India stated that Ukraine and Russia are major sources of Neon and Hexafluorobutadiene gases, moreover, the impact of the war is expected affect supply chains of semiconductors. These gases are an essential element for producing semiconductor chips as they are utilized for chip production in lithography process. List Of Key Players in the Automotive Semiconductor Market
Like it? Share it! More by this author |