europe automotive semiconductor Market

The Europe automotive semiconductor market accounted for US$ 9,257.4 Mn in 2017 and is expected to grow at a CAGR of 6.6% over the forecast period 2018–2027, to account for US$ 17,613.0 Mn in 2027. Factors including continuous partnership of automotive OEMs with semiconductor manufacturers driving the Europe automotive semiconductor market. However, the adoption of advanced semiconductors increases the overall cost of vehicle are impeding the market growth. Bolstering Demand for Electric Vehicles is opportunistic for the growth of the Europe automotive semiconductor market. The automotive industry has experienced the emergence of several new carmakers over the years. The automotive OEMs are integrating their vehicle’s dashboards, seats, heating systems as well as mirrors with advanced semiconductors and embedded computers, which is facilitating the semiconductor industry players to design and develop robust technologies. Semiconductors are also integrated into areas such as braking system, induction motor, and battery system among others. The growth of electric vehicle is foreseen to be exponential due to increasing concerns related to environment and several stringent laws by Worldwide Harmonized Light Vehicles Test Procedure (WLTP). With the rising electric vehicle production, the requirement for a large number of semiconductors and other electronics is also boosting in the market. The market players are focusing on various initiatives to enhance its reach to rural areas and boost its position in the automotive semiconductor market.

The automotive semiconductor market is fragmented with the presence of several industries and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the automotive semiconductor market further. For instance, automotive industry plays a significant role in the growth of Europe’s prosperity, as it accounts for a significant portion in the region’s GDP as well as provides jobs to a large number of population. Due to these factors, the European Commission has taken several initiatives for the development of automotive industry in the region. For instance, CARS 2020 Action Plan, and GEAR 2030 among others. Also, Horizon 2020 by EU focuses on providing funds for R&D in automotive industry by launching programs such as Also, Horizon 2020 by EU focuses on providing funds for R&D on automotive by launching programs such as European Green Vehicles Initiative and programs on 'Road Transport', 'ICT for Smart Mobility', 'Factories of the Future' and 'Logistics'. These initiatives are implemented to enhance the technologies that positively impact on the Europe automotive semiconductor market. These initiative provide various benefits to the Europe automotive semiconductor based companies located in the region thus, increasing the growth of automotive semiconductor markets. This is further expected to provide the automotive semiconductor market players to cope up with the rapidly transforming automotive industry. This initiative provides multiple benefits to the companies present in this region and thus increasing the growth of automotive semiconductor market in the region.

On the basis of component, the microcontroller segment is leading the Europe automotive semiconductor market. However, the memory segment are anticipated to grow at a highest CAGR. Micro-controllers in an automobile plays a critical role in its smooth operation, and the application of micro-controllers ranges widely from seat movements, power windows, taillights, braking, headlights and steering among others. The integration of advanced micro-controllers with other technologically enhanced electronics have attracted automobile customers. In the current automotive market, every automotive OEMs eyeballs the advantages of using microcontrollers with an objective to improve the vehicle technology, gain customer traction and finally enhance their net sales. Pertaining to the fact that, the growth trajectory of automotive industry is exponential and the same is anticipated to continue over the years, the manufacturers of micro-controllers are constantly innovating newer technologies and increasing their production line. Currently, the market players are looking ahead to support automotive semiconductor industry by innovating advanced technological components.

The overall Europe automotive semiconductor market size has been derived using both primary and secondary source. The research process begins with an exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the Europe automotive semiconductor market. It also provides the overview and forecast for the automotive semiconductor market based on all the segmentation provided with respect to Europe region. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the automotive semiconductor industry. Some of the players present in automotive semiconductor market are 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.