Automotive Semiconductor Market - Global Automotive Semiconductor Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030

Driving Growth: Increasing Semiconductor Content per Vehicle

The global automotive semiconductor market, which stood at US$40.2 billion in 2018, is poised for remarkable growth, with a projected valuation of US$141.5 billion by 2030. This substantial growth, at a CAGR of 12.5% during the forecast period of 2023-2030, is driven by several key factors.

A Roadmap to Success: Market Analysis

Automotive semiconductors encompass a range of devices used in vehicles, from memory to power, logic, and microcontrollers (MCUs). These semiconductors play a pivotal role in functions such as safety, infotainment, telematics, advanced driver assistance systems (ADAS), and body electronics and lighting. Notably, innovations like smart car access, automotive Ultra-Wideband (UWB), and Near-Field Communication (NFC) are gaining momentum, connecting vehicles and portable devices to infrastructure, thereby increasing semiconductor content per vehicle.

Navigating the Pandemic: COVID-19 Impact

The COVID-19 pandemic disrupted the global automotive semiconductor market, resulting in a significant drop in revenues for semiconductor manufacturers. For instance, Texas Instruments and NXP Semiconductors experienced revenue declines of -4.2% and -9.2%, respectively, from 2020 to 2021. However, with strong government support and favorable regulatory conditions, the market is poised for a robust rebound between 2023 and 2030.

Driving Forces: Growth Drivers

• Increasing Semiconductor Content Per Vehicle: Government regulations emphasizing safety and emissions, standardization of higher-end options across various vehicle classes, and consumer demand for fuel efficiency, advanced safety, multimedia applications, and connectivity are boosting semiconductor content per vehicle. The shift from passive safety systems to active safety systems with ADAS, including radar and vision systems, is contributing to this trend.
• Government Support and Investments: Governments worldwide are making substantial investments in the semiconductor industry. China, India, Japan, and the United States are actively bolstering their semiconductor sectors through various initiatives, including funding, incentives, and research support. These efforts are strengthening the automotive semiconductor market.

Key Report Findings

• The global automotive semiconductor market is expected to exceed US$141 billion by 2030.
• Discrete, memory, and sensor components will remain in high demand.
• ADAS applications are likely to maintain a dominant position.
• Passenger vehicles will continue to drive demand.

Asia Pacific, led by China, is the leading regional market, with Europe experiencing significant growth.

Overview of Key Segments

• Discrete, Memory, and Sensor Segments Lead Growth: Components such as logic, memory, analog, opto, discrete, MCU, and sensor are pivotal in driving market growth. The discrete segment is expected to grow the fastest, while memory devices are set to witness a 10.7% growth, driven by increased electrification in powertrain applications.
• Passenger Vehicles Dominate: Passenger vehicles account for over 55.3% of the market share in 2022 and are expected to maintain their leading position. The installation of automotive infotainment systems in passenger cars for enhanced connectivity, safety, and comfort is fueling this growth.
• ADAS Leads Revenue Generation: Advanced driver assistance systems (ADAS) are the top revenue-generating applications, driven by government regulations mandating their implementation. The infotainment and telematics segment is projected to grow at a CAGR of 12.6%, with increasing competition among manufacturers to offer better comfort and convenience

Growth Opportunities Across Regions

• Asia Pacific Takes the Fast Lane: Asia Pacific, with its burgeoning automotive industry in countries like India, China, and Japan, is the fastest-growing region, accounting for over 40% of the market share in 2022. China's government initiatives, vehicle electrification, and semiconductor content per vehicle are key drivers. India is also poised for high growth.
• Europe Accelerates: Europe is expected to experience significant growth, driven by the increasing demand for electric vehicles and innovations in autonomous vehicles.

Competitive Landscape Analysis

The global automotive semiconductor market boasts major players such as NXP Semiconductors, Infineon Technologies, Renesas Electronics Corporation, STMicroelectronics, and TSMC. These industry leaders employ various strategies like partnerships, mergers, collaborations, innovations, and acquisitions to enhance their product offerings and secure a sustainable competitive advantage.