Global Automotive Semiconductor Market: Growth Prospects 2024-2032

Global Automotive Semiconductor Market: Growth Prospects 2024-2032

According to Triton Market Research’s report, the Global Automotive Semiconductor Market is expected to advance with a CAGR of 8.74% over the forecast period 2024-2032.

AUTOMOTIVE SEMICONDUCTOR MARKET ANALYSIS

Automotive semiconductors are specialized chips essential for the operation of numerous vehicle systems, such as entertainment, navigation, safety, and engine control units. They enable the integration of advanced technologies like electric powertrains, Advanced Driver Assistance Systems (ADAS), and communication features, enhancing overall vehicle performance, safety, and innovation by meeting the specific demands of the automotive environment. The shift toward electric and hybrid vehicles, which significantly rely on semiconductors for battery management, power conversion, and electric drivetrain systems, is a major factor driving this rise. As per the International Energy Agency (IEA), there were about 14 million new electric vehicles registered worldwide in 2023, a 35% increase from 2022.

AUTOMOTIVE SEMICONDUCTOR MARKET PERFORMANCE – DRIVERS, CHALLENGES, AND OPPORTUNITIES

Growing Preference for Connected Vehicles

The automotive semiconductor market’s growth is fueled by the rising demand for electric vehicles and hybrid electric vehicles, growing preference for connected vehicles, increasing autonomous features in cars, and demand for an electronic control unit (ECU) with more functions. Automobiles equipped with an internet-accessible integrated connectivity system are known as connected cars. These vehicles feature advanced capabilities such as internet access, remote control options, and enhanced security measures. Semiconductors play a crucial role in enabling real-time connectivity in these cars. Modern vehicles can inform drivers about road closures, assist in collision avoidance, and identify available parking spots at their destination through continuously improving infotainment and telematics systems. Additionally, the global semiconductor industry has seen significant advancements with the development of technologies like 5G communication, artificial intelligence, autonomous vehicles, and the Internet of Things (IoT). These advancements are expected to drive increased semiconductor usage.

Stringent Automotive Safety and Quality Standards

Major challenges faced by the studied market include extended design cycles and elevated development expenses, stringent automotive safety and quality standards, and automotive semiconductor shortages and supply chain disruptions. With the rising focus on bringing autonomous vehicles to reality, compliance with automobile safety regulations is slowing down innovation and engagement among many owners. This challenge is particularly acute for chip manufacturers, who must meet stringent standards for IC quality and dependability. These chips must be free from design flaws and adhere to rigorous standards, as any incorrect action in emergencies could endanger nearby vehicles, passengers, and other individuals.

Also, pre-silicon verification alone is insufficient. Consequently, the automotive sector has established stringent quality standards for component testing and manufacturing to ensure parts do not malfunction once integrated into electronic systems. Only components that meet these stringent requirements are deemed acceptable for use in automobiles. To achieve certification, manufacturers must strictly adhere to industry standards during the production and testing phases.

Rising use of Gallium Nitride (GaN) and Silicon Carbide (SiC) Power Semiconductors

Factors such as rising use of gallium nitride (GAN) and silicon carbide (Sic) power semiconductors, growing need for system-on-a-chips (SOC) and automotive-grade microcontrollers (MCUS), increasing emphasis on automotive cybersecurity solutions, and shift towards neural network accelerators and automotive-grade AI processors, are creating opportunities for the studied market. The growing adoption of GaN and SiC power semiconductors is a significant trend in the electronics industry. These materials offer advantages over traditional silicon-based semiconductors, particularly in power electronics. They enable higher power density, improved efficiency, and better thermal performance in electronic devices. GaN and SiC semiconductors are commonly used in power supply units, electric vehicles, renewable energy systems, and other applications where high performance and energy efficiency are essential. This shift toward GaN and SiC semiconductors reflects a move towards more advanced and efficient materials to meet the demands of modern electronic systems.

GLOBAL AUTOMOTIVE SEMICONDUCTOR MARKET SEGMENTATION:

Market by Type of Vehicle:

Passenger Cars

Light Commercial Vehicles (LCVs)

Heavy Commercial Vehicles (HCVs)

Passenger cars are defined as road motor vehicles with a seating capacity of not more than nine persons. This category extends to vans primarily used for passenger transport, ambulances, and motor homes. Widely recognized as the predominant mode of transportation globally, these cars attract substantial investments for continuous enhancements. These improvements span various design aspects, including performance, materials, mechanics, engines (including electric power), pollution reduction, aerodynamics, aesthetics, autonomous control, entertainment, and ergonomics.

Market by Type of Fuel:

Gasoline

Diesel

Electric/Hybrid

Gasoline, also known as petrol, is a widely used fuel for internal combustion engines in passenger vehicles and light-duty trucks. It is derived from crude oil and consists of hydrocarbons that combust to produce energy. Gasoline engines are popular for their performance, ease of refueling, and widespread availability of fueling infrastructure. However, gasoline combustion contributes to greenhouse gas emissions and air pollution.

Market by Application:

Advanced Driver Assistance Systems

Body Electronics

Infotainment

Powertrain

Safety Systems

Market by Component:

Processors

Analog ICs

Discrete Power Devices

Sensors

- LED

- Image Sensor

- Position Sensor

- Temperature Sensor

- Pressure Sensor

- Other Sensors

Memory Devices

- Dram

- Flash

Lighting Devices

KEY AUTOMOTIVE SEMICONDUCTOR COMPANIES’ INSIGHTS

The companies’ insights help dive into data about the key players in the automotive semiconductor market. The strategic initiatives for each of the companies considered have been covered in detail. Some of the key automotive semiconductor companies’ strategic initiatives are:

Collaboration (July 2023): Analog Devices Inc and Foxconn

Analog Devices Inc partnered with Foxconn, a leading electronics manufacturing services provider, to develop a high-performance battery management system (BMS) and next-generation digital automotive cockpit.

Product Launch (October 2023): Toshiba Corporation

Toshiba launched the TLP3475W, a compact photorelay in a WSON4 package to enhance semiconductor testers’ pin electronics.