Asia-pacific Automotive Semiconductor Market: Growth Prospects 2024-2032

Asia-pacific Automotive Semiconductor Market: Growth Prospects 2024-2032

As per Triton Market Research’s estimates, the Asia-Pacific automotive semiconductor market is projected to advance in terms of revenue at a CAGR of 8.41% during the forecast years 2024-2032.

Government support, extensive market potential, and increased R&D spending have propelled China, Japan, South Korea, and Taiwan to become the top four semiconductor players in the region. According to the Asian Development Bank, East Asia and Southeast Asia’s economies collectively contribute around 80% to global semiconductor manufacturing. Further, key countries like India, Singapore, and Japan are also enhancing their road and telecom infrastructure to support the automotive sector, which is expected to boost demand for automotive semiconductors.

The countries analyzed in this region consist of China, Japan, South Korea, Australia & New Zealand, India, ASEAN Countries, and Rest of Asia-Pacific.

China leads with major market share, accounting for $11721.77 million in 2023

- The automotive semiconductor market in China is experiencing significant growth due to the surge in electric vehicle (EV) sales. In 2023, China registered 8.1 million new electric cars, marking a 35% increase from the previous year, as noted by IEA. As EVs become more prevalent, the demand for semiconductors, essential for various EV components, is rising accordingly.

- China’s position as a leading EV battery producer, with around 90% of the global installed capacity for cathode active materials, highlights its critical role in the supply chain. This dominance in battery production directly impacts the automotive semiconductor market, as batteries and related technologies require advanced semiconductor components.

- Initiatives like the Automotive Industry Green and Low-Carbon Development Roadmap 1.0 and the 14th Five-Year Plan emphasize the importance of technological advancements in the automotive sector. These policies are expected to elevate the adoption of semiconductor technology for varied automotive applications.

Market Forecast for Japan

The automotive semiconductor market in Japan has experienced significant growth owing to advancements in electric vehicles, autonomous driving technology, and the increasing demand for advanced driver-assistance systems (ADAS). The government has played a crucial role in fostering this growth through various initiatives. Notably, the Ministry of Economy, Trade, and Industry (METI) has implemented policies to support semiconductor manufacturing and R&D. These include financial incentives for companies investing in semiconductor technologies, subsidies for research collaborations between industry and academia, and efforts to bolster the domestic supply chain to reduce dependency on foreign sources.

The market segmentation includes type of vehicle, application, type of fuel, and component. The type of vehicle segment is branched into heavy commercial vehicles, passenger cars, and light commercial vehicles.

Heavy commercial vehicles are those with a gross vehicle weight (GVW) exceeding 6 tons. GVW represents the total weight of the vehicle plus its maximum allowed payload. This payload determines the vehicle’s earning potential, as freight rates are typically based on the weight and distance transported. Semiconductors are integral to these vehicles’ electronic control units (ECUs), which manage engine performance, transmission systems, braking mechanisms, and other critical functions.

Contender Analysis in the Automotive Semiconductor Market:

Samsung Electronics Co Ltd, a member of the Samsung group, is among the leaders in consumer electronics. Its diverse product lineup encompasses smartphones, tablets, wearables, virtual reality devices, accessories, televisions, home entertainment systems, audio devices, computing solutions like laptops and desktops, printers, monitors, storage devices, and a range of home appliances. The company operates across Asia, Europe, and the Americas, with headquarters located in Seoul, South Korea.

In July 2024, Samsung Electronics announced offering turnkey semiconductor solutions to Preferred Networks, a Japanese AI company, to develop innovative AI accelerators.

Other companies offering solutions in the automotive semiconductor market include Analog Devices Inc, Intel Corporation, Microchip Technology Incorporated, Micron Technology Inc, ON Semiconductor Corporation, and NXP Semiconductors NV.