In 2017, the global automotive semiconductor market was valued at approximately US$34.89 billion and is projected to experience a compound annual growth rate (CAGR) of 8.3% from 2018 to 2027, reaching an estimated US$76.93 billion by the end of the forecast period.
Semiconductors play a crucial role in driving the latest advancements in automotive technology worldwide. The demand for automotive semiconductors is on a consistent upward trajectory, primarily due to the increasing complexity of vehicle designs. This trend presents a substantial long-term growth opportunity for the automotive semiconductor sector. Consequently, numerous global automotive suppliers and original equipment manufacturers (OEMs) are concentrating on the development of innovative sensors, connectivity solutions, mapping technologies, and other cutting-edge advancements, alongside the growth of electric vehicles (EVs). Additionally, the semiconductor content per vehicle is escalating, driven by government regulations aimed at enhancing safety, fuel efficiency, and reducing emissions. The evolution of safety features in the automotive semiconductor landscape has transitioned from passive systems to active systems, including advanced driver-assistance systems (ADAS) that utilize radar and vision technologies. The demand for features such as electronic stability control, tire pressure monitoring, and ADAS is experiencing significant growth, largely due to regulatory requirements.
The automotive semiconductor market has seen a notable surge, largely fueled by an increase in automotive production. Manufacturers across the globe are witnessing heightened demand for a variety of vehicles, including passenger cars, lightweight commercial vehicles, and heavy-duty trucks. Rising disposable incomes in developed nations, coupled with growing purchasing power in emerging markets, are significantly influencing vehicle acquisition trends. The relentless pressure on automotive manufacturers to produce a high volume of vehicles to satisfy consumer demand is propelling production rates in the industry. As vehicle manufacturing ramps up, there is a concurrent rise in the demand for advanced technologies to be integrated into these vehicles, creating a lucrative market for various semiconductor types. Currently, leading manufacturers are equipping their vehicles with advanced sensors to enhance safety features. In addition to sensors, a diverse array of semiconductor types is being incorporated into new vehicles, enabling automotive semiconductor companies to achieve substantial revenue growth.
The global automotive semiconductor market is categorized into three primary segments: component, application, and vehicle type. The component segment is further divided into categories such as optical devices, sensors and actuators, memory, microcontrollers, analog integrated circuits (ICs), and logic and discrete power devices. Within the sensors and actuators category, there are sub-segments including LED, image sensors, position sensors, temperature sensors, pressure sensors, and others. The memory segment is classified into DRAM and flash memory. The application segment encompasses advanced driver assistance systems, body electronics, infotainment systems, powertrain technologies, and safety systems. The vehicle type segment is divided into passenger cars, light commercial vehicles, and heavy commercial vehicles. Geographically, the Asia-Pacific (APAC) region currently holds the largest market share in the automotive semiconductor sector.
Key players in the automotive semiconductor market include NVIDIA Corporation, Intel Corporation, NXP Semiconductors N.V., Infineon Technologies AG, Rohm Semiconductor, Texas Instruments Inc., Renesas Electronics Corporation, Robert Bosch GmbH, ON Semiconductor Corporation, and STMicroelectronics N.V., among others. Numerous other companies are also active in the automotive semiconductor space, continuously introducing new technologies and products that contribute to the market's expansion and revenue growth over the years.