Automotive Semiconductor Market in India 2024-2028

Automotive Semiconductor Market in India 2024-2028

Market overview:

The surge in automobile numbers in India is driving the demand for semiconductor technology related to the automotive industry. Apart from the demand, the presence of a strong electronics system design manufacturing (ESDM) industry in India also contributes to market growth.

The demand for high-efficiency power semiconductors and the development of compact single-chip solutions for radar sensors are also predicted to contribute significantly to the overall growth.

As of 2023, India was lagging in the domestic production of semiconductor chips, especially advanced chips that are used in various electronics, including automobiles and smartphones. At present, India heavily imports a considerable portion of its semiconductor requirements from countries such as Taiwan, South Korea, and China. The Indian government acknowledges the importance of semiconductors and is helping Indian companies to compete on a global scale with established players through various measures to promote domestic manufacturing.

Market driver:

The rise in demand for consumer electronics and the widespread adoption of IoT devices such as smart home appliances, wearables, and connected cars in India contribute to the expansion of the semiconductor industry.

Government initiatives such as the Design Linked Incentive (DLI), Chips to Startup (C2S), and Scheme for Promotion of Electronic Components and Semiconductors (SPECS) actively promote the growth of the semiconductor market in India.

The growing semiconductor industry in India is significantly driving product innovation, enhancement, and fulfillment of the demand for chips used in the automotive sector.

Key trend:

India, though not an early adopter, is increasingly exploring connected vehicle technologies. The semiconductor industry's advancements in this domain will greatly contribute to the future of the Indian automotive industry.

India’s semiconductor growth is driving the integration of advanced infotainment systems, connecting vehicles to the digital world, enhancing passenger experiences, and creating opportunities for in-car services. Additionally, the rollout of 5G networks will further integrate vehicles into the digital landscape, which will create demand for advanced chips for data communication and transfer.