Automotive Semiconductor Market Size, Share & Trends Analysis Report By Component (Processor, Sensor, Memory), By Vehicle Type (Passenger Vehicle, LCV, HCV), By Application- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2021-2027

The global Automotive Semiconductor market gathered revenue around USD 41.70 Billion in 2020 and market is set to grow USD 64.12 Billion by the end of 2027 and is estimated to expand at a modest CAGR of 7.2% during the prediction period 2021 to 2027.

Automotive Semiconductor Market Size 2021 to 2027

Growth Factors:

The growing focus on vehicle safety systems and a significant increase in the adoption of engine control units (ECUs) in modern automobiles are anticipated to drive the demand for automotive semiconductors. Moreover, emerging technologies such as 5G and IoT are expected to play an instrumental role in increasing the demand for automotive semiconductors. Additionally, electric vehicles and all levels of assisted driving technologies are expected to create considerable growth opportunities over the next eight years.

Electrification in the automotive industry is growing rapidly owing to the rising need to reduce carbon emissions. Having realized the importance of electric vehicle business opportunities, several manufacturers are increasingly investing in smart technologies, electronics, and safety systems. Such components of electric vehicles comprise semiconductors equipped with advanced technologies to improve the functionalities of smart electronics. For instance, the application of shock sensors, MEMS accelerometers, MEMS gyroscopes, inertial sensors, tilt sensors, and MEMS microphones for roll over detection, electronic braking, dynamic head lighting, inertial navigation, and airbag safety systems. Hence, as the demand for hybrid and electric vehicles increases, the need for semiconductors is anticipated to increase over the forecast period.

This research report purposes at stressing the most lucrative growth prospects. The aim of the research report is to provide an inclusive valuation of the Automotive Semiconductor market and it encompasses thoughtful visions, actualities, industry-validated market findings, historic data, and prognoses by means of appropriate set of assumptions and practice. Global Automotive Semiconductor market report aids in comprehending market structure and dynamics by recognizing and scrutinizing the market sectors and predicted the global market outlook.

Report Coverage

Report Scope Details
Market Size USD 64.12 Billion by 2027
Growth Rate CAGR of 7.2% From 2021 to 2027
Base Year 2020
Forecast Period 2021 to 2027
Historic Data 2017 to 2020
Report coverage Growth Factors, Revenue Status, Competitive Landscape,  and Future Trends
Segments Covered  Component, vehicle type, application and Region
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Companies Mentioned  Infineon Technologies AG; NXP Semiconductors; Renesas Electronics Corporation; Texas Instrument Incorporated; STMicroelectronics

COVID-19 Impact Assessment on Market Landscape

The report comprises the scrutiny of COVID-19 lock-down impact on the income of market leaders, disrupters and followers. Since lock down was instigated differently in diverse regions and nations, influence of same is also dissimilar across various industry verticals. The research report offers present short-term and long-term influence on the market to assist market participants across value chain makers to formulate the framework for short term and long-lasting tactics for recovery and by region.

Automotive Semiconductor market Report empowers readers with all-inclusive market intelligence and offers a granular outline of the market they are operational in. Further this research study delivers exceptional combination of tangible perceptions and qualitative scrutiny to aid companies accomplishes sustainable growth. This report employs industry-leading research practices and tools to assemble all-inclusive market studies, intermingled with pertinent data. Additionally, this report also emphases on the competitive examination of crucial players by analyzing their product portfolio, pricing, gross margins, financial position, growth approaches, and regional occurrence.

Market Segments analysis:

By Component analysis:

Based on component, the market is segmented into processor, discrete power, sensor, memory, and others. In 2020, the others component segment, which includes analog ICs and logic ICs, accounted for the largest revenue share of around 30% and is expected to expand at a CAGR of over 3.0% over the forecast period. The demand for semiconductors in the automotive industry extends across all component types. These components help enhance vehicle electrification, connectivity, and shared mobility services. The automotive chip, which is integrated into the vehicle, notifies the driver with a warning and helps take the correct actions in the case of an accident or a crash. Logic ICs are highly used in navigation and infotainment systems. Furthermore, ultra-luxurious vehicles have a more advanced in-vehicle infotainment system and as the sale of ultra-luxurious vehicles is increasing, the demand for logic ICs is expected to increase in the forthcoming years.

By Vehicle Type analysis:

The passenger vehicles segment accounted for the largest market share of over 65.2% in 2020 and is expected to continue leading the market throughout the forecast period. This growth can be attributed to the high demand for passenger cars across the globe. Moreover, increasing the installation of automotive infotainment systems in passenger cars for hands-free phone connectivity and providing navigational services, climate control, voice control, parking assistance, two-way communication tools, and access to the internet is further stimulating the segment growth.

By Application analysis:

The body electronics segment accounted for the highest share of around 24.1% in 2020 and is expected to expand at a CAGR of over 4.1% from 2021 to 2027. The fastest-growing applications involving the consumption of semiconductors in a vehicle are telematics and infotainment, powertrain, and safety. The telematics & infotainment segment is projected to register the highest CAGR of more than 9.2% over the forecast period and is anticipated to hold the highest share by the end of the forecast period. 

Regional analysis:

The Asia Pacific region dominated the global market. The region accounted for a market share of over 40.1% in 2020. The region is likely to emerge as the fastest-growing market over the forecast period owing to the growth of the automotive industry, especially in emerging economies such as India, China, and Japan. In Asia Pacific, China led the market in 2020 and is expected to continue to dominate throughout the forecast period. Moreover, the growing e-commerce industry in the region is anticipated to surge the demand for commercial vehicles in the coming years.

Europe is projected to register the second-highest CAGR of over 5.2% over the forecast period. The growing demand for electric vehicles is likely to fuel the market growth in Europe. Automobile manufacturers are continuously focusing on designing, innovating, and developing autonomous vehicles, which have drawn a considerable percentage of customers in major automotive manufacturing countries. Owing to the consumers' attraction and demand for smart and fully autonomous cars, semiconductors are projected to become an essential part of the innovations in the automotive industry in the coming years.

Competitive Rivalry

Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

  • Company Overview
  • Company Market Share/Positioning Analysis
  • Product Offerings
  • Financial Performance
  • Recent Initiatives
  • Key Strategies Adopted by Players
  • Vendor Landscape
  • List of Suppliers
  • List of Buyers

Some of the prominent players in the Automotive Semiconductor Market include:  Infineon Technologies AG; NXP Semiconductors; Renesas Electronics Corporation; Texas Instrument Incorporated; STMicroelectronics

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2027 and covers subsequent region in its scope:

  • By Component
    • Processor
    • Discrete Power
    • Sensor
    • Memory
    • Others
  • By Vehicle Type
    • Passenger Vehicle
    • Light Commercial Vehicle (LCV)
    • Heavy Commercial (HCV)
  • By Application
    • Chassis
    • Powertrain
    • Safety
    • Telematics & Infotainment
    • Body Electronics

By Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Highlights of the Report:

  • Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
  • Product Development/Innovation: Detailed insights on the upcoming technologies, R&D activities, and product launches in the market
  • Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
  • Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Automotive Semiconductor market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Automotive Semiconductor market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Automotive Semiconductor markets more accurate and reliable.

Secondary Research

It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.

The secondary research sources referred in the process are as follows:

  • Governmental bodies, and organizations creating economic policies
  • National and international social welfare institutions
  • Company websites, financial reports and SEC filings, broker and investor reports
  • Related patent and regulatory databases
  • Statistical databases and market reports
  • Corporate Presentations, news, press release, and specification sheet of Manufacturers

Primary Research

Primary research includes face-to face interviews, online surveys, and telephonic interviews.

  • Means of primary research: Email interactions, telephonic discussions and Questionnaire based research etc.
  • In order to validate our research findings and analysis we conduct primary interviews of key industry participants. Insights from primary respondents help in validating the secondary research findings. It also develops Research Team’s expertise and market understanding.

Industry participants involved in this research study include:

  • CEOs, VPs, market intelligence managers
  • Procuring and national sales managers technical personnel, distributors and resellers
  • Research analysts and key opinion leaders from various domains

Key Points Covered in Automotive Semiconductor Market Study:

  • Growth of Automotive Semiconductor in 2021
  • Market Estimates and Forecasts (2017-2027)
  •  Brand Share and Market Share Analysis
  •  Key Drivers and Restraints Shaping Market Growth
  •  Segment-wise, Country-wise, and Region-wise Analysis
  •  Competition Mapping and Benchmarking
  •  Recommendation on Key Winning Strategies
  •  COVID-19 Impact on Demand for Automotive Semiconductor and How to Navigate
  •  Key Product Innovations and Regulatory Climate
  •  Automotive Semiconductor Consumption Analysis
  •  Automotive Semiconductor Production Analysis
  •  Automotive Semiconductor and Management