North America Automotive Semiconductor Market Forecast 2024-2032
The North America automotive semiconductor market is anticipated to progress at a CAGR of 8.02% during the forecast period, 2024 to 2032.
MARKET INSIGHTS
The growth of the automotive semiconductor market in North America is driven by the rising demand for commercial vehicles, particularly in the United States. This demand is further fueled by the increasing adoption of automated safety technologies and the expanding production of electric vehicles. However, market expansion will likely be constrained due to intense competition among businesses in the region.
REGIONAL ANALYSIS
The North America automotive semiconductor market growth evaluation includes a detailed analysis of Canada and the United States. The United States is among the largest automotive markets in the world. However, despite having domestic manufacturing capabilities, the country’s semiconductor demand heavily relies on foreign suppliers, particularly from Taiwan. The semiconductor sector is a crucial component of the US industry, with the demand for semiconductor chips expected to remain high due to the rise of wireless networks like 5G, autonomous vehicles, quantum computing, and artificial intelligence. Moreover, the United States aims to reduce its dependency on Asian imports and position itself as a lucrative production hub.
Canada’s automotive industry is located within North America’s largest vehicle-producing region, the Great Lakes automotive manufacturing cluster. As one of the world’s top 10 producers of light vehicles, Canada leads in the development of transformative automotive technologies. The country’s expertise in emerging technologies continues to attract significant investments in autonomous and connected vehicle research from global OEMs such as GM and Ford, as well as tech giants like Uber, Google, and NVIDIA. The expansion of Canada’s tech industry is increasingly propelled by clusters of expertise in artificial intelligence (AI), including machine learning, deep learning, neural networks, and computer vision.
Additionally, Canada has outlined plans to boost its semiconductor manufacturing capabilities by announcing a significant investment aimed at transforming the country into a developer, manufacturer, and supplier of semiconductors. This initiative includes a comprehensive four-step plan to expand chip development by 2050. As part of this effort, a $240 million investment will support collaboration between Canadian researchers and businesses, further strengthening the nation’s electronics industry. Collectively, these factors are projected to propel the North America automotive semiconductor market growth during the forecasted period.
SEGMENTATION ANALYSIS
The North America automotive semiconductor market segmentation includes application, fuel type, vehicle type, and component. The fuel type segment includes electric/hybrid, gasoline, and diesel.
Diesel is a combustible liquid derived from the distillation of crude oil and is commonly used in diesel engines. Compared to gasoline, diesel fuel releases more energy upon combustion, resulting in improved fuel economy. However, it also produces significant quantities of air pollutants, including carbon and sulfur particulates.
Electric vehicles, on the other hand, are powered by electric motors rather than internal combustion engines. They rely on a large traction battery pack to drive the motor, eliminating the need for traditional components like fuel tanks, fuel lines, and fuel pumps. As they run solely on electricity, electric vehicles do not emit exhaust gases.
The use of semiconductor components in electric vehicles is rapidly expanding. The increasing adoption of features such as backup cameras and blind-spot detectors has fueled the demand for semiconductors, which are essential for these functions. Furthermore, advancements in semiconductor technology have enabled electric vehicle batteries to operate at higher voltages, allowing for longer driving ranges.
COMPETITIVE INSIGHTS
Some of the leading companies in the North America automotive semiconductor market are ON Semiconductor Corporation, Micron Technology Inc, Qualcomm Technologies Inc, NXP Semiconductors NV, etc.
Micron Technology provides semiconductor systems for consumer, computing, automotive, networking, embedded, mobile, and enterprise storage solutions. In addition, the R&D of the company focuses on developing smaller line-width process technologies and fundamentally different memory structures. The company has operations in Asia, Europe, the Americas, and the Middle East & Africa, with headquarters in Boise, Idaho, the United States. One of its key products, NOR Flash, facilitates the systems that optimize fuel economy, improve active body control, and minimize CO2 emissions.