Automotive Transceivers Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Protocol, Application, and Vehicle Type

The automotive transceivers market is expected to reach US$ 9,383.65 million by 2028 from US$ 6,340.11 million in 2022; it is estimated to grow at a CAGR of 6.8% from 2022 to 2028.

The growing trend of autonomous vehicles and ADAS systems with the proliferation of the automotive sector are the key factors driving the need for faster transmission of signals, which is creating the demand for advanced transceivers in automotive vehicles. Also, the growing demand for luxurious and premium cars and the increasing sale of electric vehicles are the key factors contributing to the demand for automotive transceivers. As per the Global Electric Vehicle Outlook, electric car sales, including fully electric and plug-in hybrid vehicles, registered a new record of 6.6 million units in 2021. Further, in China, electric car sales increased significantly to 3.3 million in 2021, accounting for about half of the total global sales. EV sales also grew strongly in Europe by 65% to reach 2.3 million units in the same year, while in the US, EV sales reached 630,000 units in 2021. In addition, government initiatives supporting the adoption of electric vehicles are propelling the demand for automotive transceivers. In November 2021, the Indian government launched the “E-Amrit” web portal on electric vehicles. The E-Amrit intends to complement the government’s initiatives to raise awareness of EVs and the benefits of switching to EVs.

The European Commission (EC) is working on framing the regulatory standards for motor vehicles for ensuring the safety of vehicle occupants and vulnerable road users. For instance, the Regulation (EU) 2019/2144 of the European Parliament and the Council of 27 November 2019 added new mandatory safety features; these features include initiating warnings about driver drowsiness and distraction (e.g., smartphone usage while driving), providing intelligent speed assistance, reversing safety with camera or sensors, and recording data in case of an accident (“black box”). The EC had plans to make these safety features mandatory from 2022. Thus, such government regulations and significant investment are likely to boost the adoption of transceivers in automotive vehicles, which would fuel the market growth during the forecast period. The presence of a large number of leading players for providing automotive transceivers is also augmenting the Europe automotive transceivers market growth. The key players are significantly focused on the advancement of transceiver features to deliver more efficiency and reliability in communicating the signals for ease in driving the vehicle. For instance, in March 2020, Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, introduced multiple Cellular Vehicle-to-Everything (C-V2X) products for leading automotive and infrastructure suppliers. The product features Qualcomm® 9150 C-V2X Platform that has achieved the certification in accordance with the European Radio Equipment Directive (“RED”) Certification in Europe. Also, in March 2021, Continental Engineering Services, a pioneering developer of technologies and services for sustainable and connected mobility, announced its plan to expand into three new branches in England, Germany (Sindelfingen), and Italy. The expansion initiative aims to develop and integrate advanced driver assistance systems (ADAS), which would create a demand for automotive transceivers in European countries. In addition, as per the study conducted by the Autopromotec Observatory based on Boston Consulting Group in May 2021, 54% of the car fleet running on Europe's roads is likely to be equipped with ADAS by 2030. Thus, the wide scope in the deployment of ADAS in European vehicles is anticipated to increase the demand for automotive transceivers, which is expected to fuel the market growth over the coming years.

Major OEMs are embracing ADAS solutions to achieve higher safety ratings to attract more consumers. The increasing adoption of ADAS in cars, which are equipped with components such as cameras, sensors, radar, and software generating continuous signals and data, indicates the need for transceivers to send and receive signals between devices. According to the International Organization of Motor Vehicle Manufacturers (OICA) statistics, in the pre-COVID scenario, the production and sales of automotive vehicles continued to increase at a faster pace owing to a rise in disposable income. However, the emergence of the COVID-19 pandemic hampered the GDPs of countries and the spending power of consumers, which eventually impacted the buying trend of automotive vehicles in 2020. Nevertheless, in 2021, with ease in restrictions and the reopening of business activities, production and sales of vehicles increased abruptly. For instance, vehicles with features and software services are equipped with systems-on-a-chip (SoCs), which help run anything from electric powertrains. Car sensors such as camera and radar sensors capture data, translate it, and send it to the powertrain to enable features such as emergency braking. In January 2022, Aptiv PLC announced an agreement to acquire Wind River company from TPG Capital; the acquisition was valued at US$ 4.3 billion. The initiative was intended to integrate the company’s edge-to-cloud technology that develops, runs, and manages mission-critical intelligent systems. Thus, the increasing sales of automotive vehicles, along with the growing integration of electronics systems in automotive vehicles, is likely to drive the automotive transceivers market growth during the forecast period.

Broadcom, Infineon Technologies AG, Renesas Electronics Corporation, Maxim Integrated, Microchip Technology Inc., NXP Semiconductors, Robert Bosch GmbH, STMicroelectronics, Texas Instruments Incorporated, and Toshiba Corporation are a few key players profiled in the automotive transceivers market study. The market report provides detailed insights, which will help the key players strategize growth in the coming years.

The ongoing developments in automotive transceivers are driving the market growth. In 2022, the European Commission mandated the advanced safety systems in vehicles to protect passengers, pedestrians, and cyclists. The initiative was undertaken with the aim of reducing the number of fatalities and injuries on roads, as 90% of such incidents occur due to human error. Furthermore, cars, vans, trucks, and buses must be equipped with advanced safety systems such as warning of driver drowsiness, intelligent speed assistance, reversing safety with a camera or sensors, and data recorders in case of an accident. Thus, such favorable government policies for protection against fatal accidents are increasing the adoption of ADAS and V2X communication, which is creating more demand for in-vehicle communication modules that support the market growth.

The global automotive transceivers market is segmented on the basis of protocol, application, and vehicle type. Based on protocol, the market is segmented into CAN, LIN, FLEXRAY, and others. Based on application, the market is segmented into safety, body control module, chassis, powertrain, steering wheel, engine, and door/seat. Based on vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles.

The automotive transceivers market is segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America. In 2022, Asia Pacific led the market with the largest share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the market from 2022 to 2028.