India Automotive Semiconductor Market Forecast 2024-2032

India Automotive Semiconductor Market Forecast 2024-2032

The India automotive semiconductor market is set to project a CAGR of 9.59% during the forecast period, 2024 to 2032. The base year regarded for the studied market is 2023, and the forecasting years are from 2024 to 2032.

MARKET INSIGHTS

India’s automotive sector boasts the world’s largest production of tractors, two-wheelers, and three-wheelers. The increasing middle-class population and the rising demand for passenger cars are significantly driving the need for automotive semiconductors in the country.

Industries sourcing semiconductors in India are experiencing substantial demand, with semiconductors increasingly used in end-use sectors such as telecommunications equipment, automobiles, information technology, office automation (IT & OA), and mobile devices. Moreover, the growing adoption of the Internet of Things (IoT) is expected to elevate the demand for intelligent computing, further boosting the need for semiconductors.

The country is also taking proactive steps to adopt alternative fuels for automotive use, starting with electric vehicles. Consequently, the rising demand for semiconductor products, especially smart Electronic Control Units (ECUs) for efficient driving, presents significant growth opportunities. As cars incorporate more advanced features, the reliance on semiconductor solutions will continue to grow. Continuous innovations in the automotive industry have also made electronics an essential part of the transition from traditional mechanical systems to sophisticated electronic systems. These factors collectively offer promising growth opportunities for the automotive semiconductor market in India during the forecast period.

SEGMENTATION ANALYSIS

The India automotive semiconductor market segmentation includes application, component, fuel type, and vehicle type. The component segment includes lighting devices, memory type, processors, analog ICs, discrete power devices, and sensors.

An analog integrated circuit (IC) is a fundamental component in most electronic devices, including sensors, power management circuits, and operational amplifiers. It produces an output signal that continuously follows the input signal. In its input stage, the IC receives voltage or signals from a source. The subsequent amplification stage then boosts the received signal, enabling efficient processing. These continuous signals perform functions such as active filtering, demodulation, mixing, and amplification.

In automotive applications, IC design faces challenges such as ensuring robust electromagnetic compatibility, high voltage capability, and protection against overvoltage and short-circuit conditions. To meet the increasing reliability requirements, automotive electronics suppliers now often adopt a system-on-chip approach. Smart power technologies further facilitate integrating multiple power outputs, analog functions, and logic stages onto a single chip. Additionally, special design measures are crucial to ensure analog circuits maintain accuracy and functionality under harsh conditions caused by high power dissipation.

The processor segment in the automotive semiconductor market comprises digital signal processors, microcontroller units (MCUs), and microprocessor units. The use of various microcontrollers to handle operations such as processing applications, electrical systems, and overall vehicle management has significantly increased. Different types of microcontrollers used in automobiles, like PIC, 815, and AVR, require a chip that integrates an automobile’s range, program memory, RAM, and CPU to ensure smooth operation.

COMPETITIVE INSIGHTS

Some of the prominent market players in the India automotive semiconductor market are ASM Technologies Ltd, NXP Semiconductors NV, Tata Elxsi, etc.

NXP Semiconductors NV specializes in providing standard products and mixed-signal solutions for a wide range of applications, including computing, mobile, industrial, lighting, wireless infrastructure, and automotive sectors. The company also offers products tailored for in-vehicle networking and visual and audio head-end unit applications.

With a global presence in over 30 countries, NXP is headquartered in Eindhoven, the Netherlands. Among its key offerings is the S32K Microcontroller series, a 32-bit scalable family designed for automotive applications such as body control, electrification, and zone control, providing enhanced performance and flexibility for modern vehicle systems.