The global market for motor driver integrated circuits (ICs) is projected to experience significant growth, expanding from approximately US$ 3,882.57 million in 2021 to around US$ 5,589.33 million by 2028. This growth trajectory indicates a compound annual growth rate (CAGR) of 5.3% over the forecast period from 2021 to 2028.
The rise in electric vehicle (EV) adoption is a key driver of this market expansion, with sales of electric and hybrid vehicles expected to surge considerably in the coming years. This increase is largely due to stringent emission regulations and advancements in battery technology, which enhance battery density. Moreover, advanced driver-assistance systems (ADAS), which were once exclusive to high-end luxury vehicles, are now being integrated into more affordable models. Notably, since 2020, all new vehicles manufactured in the United States are mandated to include features such as automatic braking systems, lane departure warnings, and parking assistance systems.
As the automotive sector continues to evolve, the future prospects for motor driver ICs appear promising. Numerous industrial manufacturers are entering this market, offering specialized motor drivers tailored for automotive applications. For example, STMicroelectronics provides a diverse array of motor control ICs designed to withstand the demanding conditions of automotive environments, catering to the requirements of brushed DC motors, stepper motors, and brushless DC motors across various voltage and current specifications. Consequently, the motor driver IC market is poised to benefit from the increasing demand for electric and autonomous vehicles.
In addition, semiconductor companies are advocating for electric vehicle manufacturers to transition from conventional silicon chips to alternative materials that can enhance vehicle efficiency and address consumer concerns. Selecting the right technology is crucial at this juncture, as the automotive industry undergoes its most significant transformation in nearly a century. Manufacturers globally are striving to phase out internal combustion engines, with even iconic gasoline-powered models like Ford's Mustang and GMC's Hummer being reimagined as electric vehicles. This shift positions the automotive sector as a primary market for motor driver IC producers.
The COVID-19 pandemic has also impacted the motor driver IC industry, resulting in factory closures, supply chain disruptions, and challenges in international trade. In early 2020, many automakers reduced their production capacities due to escalating semiconductor shortages and a decline in market demand for motor driver ICs. However, the market began to recover in the third quarter of 2020 as lockdown restrictions were lifted globally, leading to positive developments by the end of that year.
Key players in the motor driver IC market include Toshiba Corporation, Mitsubishi Electric Corporation, Texas Instruments, Allegro Microsystems, Dialog Semiconductor Plc, STMicroelectronics, ON Semiconductor, Rohm Co., Ltd., Infineon Technologies AG, and Analog Devices. The report also includes secondary research on other companies that hold a significant share of the market.
The overall size of the motor driver IC market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aims to provide a comprehensive overview and forecast for the motor driver IC market across all segments and regions. Additionally, numerous primary interviews have been conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants in this process include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the motor driver IC sector.