Automotive Transceivers Market Research Report and Outlook by 2028

The automotive transceivers market is projected to grow from US$ 6,340.11 million in 2022 to US$ 9,383.65 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.8% during this period.

The increasing prevalence of autonomous vehicles and advanced driver-assistance systems (ADAS), alongside the expansion of the automotive industry, are pivotal factors driving the demand for rapid signal transmission. This surge in demand is leading to a greater need for sophisticated transceivers in vehicles. Additionally, the rising interest in luxury and premium automobiles, coupled with the growing sales of electric vehicles (EVs), significantly contributes to the automotive transceiver market's growth. According to the Global Electric Vehicle Outlook, sales of electric cars, which include fully electric and plug-in hybrid models, reached a record 6.6 million units in 2021. Notably, China saw a remarkable increase in electric vehicle sales, totaling 3.3 million units in 2021, which represented nearly half of the global sales. Europe also experienced a substantial growth of 65%, with EV sales reaching 2.3 million units, while the United States recorded 630,000 units sold in the same year. Furthermore, government initiatives aimed at promoting electric vehicle adoption are further driving the demand for automotive transceivers. For instance, in November 2021, the Indian government introduced the "E-Amrit" web portal to enhance awareness about electric vehicles and their benefits.

The European Commission (EC) is actively developing regulatory standards for motor vehicles to ensure the safety of both vehicle occupants and vulnerable road users. A notable example is Regulation (EU) 2019/2144, enacted by the European Parliament and Council on November 27, 2019, which introduced new mandatory safety features. These features include alerts for driver drowsiness and distraction (such as smartphone use while driving), intelligent speed assistance, reversing safety through cameras or sensors, and data recording capabilities in the event of an accident (often referred to as a "black box"). The EC plans to enforce these safety features starting in 2022. Consequently, such regulatory measures and substantial investments are expected to enhance the adoption of transceivers in vehicles, thereby propelling market growth throughout the forecast period. The presence of numerous leading manufacturers in the automotive transceiver sector is also contributing to the growth of the European market. Key players are focusing on enhancing transceiver capabilities to improve efficiency and reliability in signal communication, facilitating easier vehicle operation. For example, in March 2020, Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, launched several Cellular Vehicle-to-Everything (C-V2X) products for major automotive and infrastructure suppliers. This product line includes the Qualcomm 9150 C-V2X Platform, which has received certification under the European Radio Equipment Directive (RED). Additionally, in March 2021, Continental Engineering Services, a leader in technologies and services for sustainable and connected mobility, announced plans to expand into three new locations in England, Germany (Sindelfingen), and Italy. This expansion aims to develop and integrate advanced driver assistance systems (ADAS), which will further drive the demand for automotive transceivers in Europe. A study by the Autopromotec Observatory, based on research from the Boston Consulting Group in May 2021, indicated that by 2030, 54% of the car fleet on European roads is expected to be equipped with ADAS. This broad implementation of ADAS in European vehicles is anticipated to significantly boost the demand for automotive transceivers, contributing to market growth in the coming years.

Leading original equipment manufacturers (OEMs) are increasingly adopting ADAS solutions to achieve higher safety ratings and attract more consumers. The growing integration of ADAS in vehicles, which utilize components such as cameras, sensors, radar, and software to generate continuous signals and data, underscores the necessity for transceivers to facilitate communication between devices. According to statistics from the International Organization of Motor Vehicle Manufacturers (OICA), prior to the COVID-19 pandemic, the production and sales of vehicles were on an upward trajectory due to rising disposable incomes. However, the pandemic adversely affected the GDPs of various countries and consumer spending, which in turn impacted automotive purchasing trends in 2020. Nevertheless, in 2021, as restrictions eased and business activities resumed, vehicle production and sales surged. For instance, vehicles equipped with advanced features and software services utilize systems-on-a-chip (SoCs) that manage everything from electric powertrains to safety systems. Car sensors, including cameras and radar, gather data, process it, and relay it to the powertrain to enable functionalities such as emergency braking. In January 2022, Aptiv PLC announced its acquisition of Wind River from TPG Capital for US$ 4.3 billion, aiming to integrate the company's edge-to-cloud technology for developing and managing critical intelligent systems. Thus, the rising sales of vehicles, along with the increasing integration of electronic systems, are expected to drive the growth of the automotive transceivers market during the forecast period.

Key players in the automotive transceivers market include Broadcom, Infineon Technologies AG, Renesas Electronics Corporation, Maxim Integrated, Microchip Technology Inc., NXP Semiconductors, Robert Bosch GmbH, STMicroelectronics, Texas Instruments Incorporated, and Toshiba Corporation. The market report offers comprehensive insights that will assist these key players in strategizing for growth in the upcoming years.

The ongoing advancements in automotive transceivers are propelling market growth. In 2022, the European Commission mandated the implementation of advanced safety systems in vehicles to safeguard passengers, pedestrians, and cyclists. This initiative aims to reduce fatalities and injuries on the roads, as 90% of such incidents are attributed to human error. Consequently, vehicles, including cars, vans, trucks, and buses, must be equipped with advanced safety features such as driver drowsiness alerts, intelligent speed assistance, reversing safety systems with cameras or sensors, and data recorders for accident scenarios. Such favorable government policies aimed at preventing fatal accidents are driving the adoption of ADAS and vehicle-to-everything (V2X) communication, thereby increasing the demand for in-vehicle communication modules that support market growth.

The global automotive transceivers market is categorized based on protocol, application, and vehicle type. The protocol segmentation includes CAN, LIN, FLEXRAY, and others. The application segmentation encompasses safety, body control modules, chassis, powertrain, steering wheel, engine, and door/seat. The vehicle type segmentation divides the market into passenger vehicles and commercial vehicles.

The automotive transceivers market is further segmented into five primary regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America. In 2022, Asia Pacific held the largest market share, followed closely by Europe. Moreover, Asia Pacific is anticipated to exhibit the highest CAGR from 2022 to 2028.