Middle East And Africa Automotive Semiconductor Market 2024-2032
Based on Triton’s research, the Middle East and Africa automotive semiconductor market is estimated to register a compound annual growth rate of 7.09% during the forecast period 2024-2032.
The automotive semiconductor market in the Middle East and Africa is experiencing notable growth, driven by increasing demand for electric vehicles (EVs) and autonomous driving systems. Government initiatives in the region are also playing a crucial role in fostering this growth. For instance, countries like the UAE and Saudi Arabia are pushing for smart city projects and increasing the adoption of electric vehicles (EVs), which inherently require advanced semiconductors. Furthermore, partnerships between automotive OEMs and semiconductor manufacturers are set to enhance the supply chain and technological capabilities. This positive outlook is reinforced by the broader trend of increasing vehicle electrification and the integration of advanced driver assistance systems (ADAS), which require sophisticated semiconductor technology.
The countries reviewed in this region comprise Saudi Arabia, Turkey, United Arab Emirates, South Africa, and Rest of Middle East & Africa.
Turkey spearheads the regional market, obtaining $279.20 million in 2023
- As per Turkey’s Investment Office (Invest in Türkiye), the automotive industry achieved a record export value of $35 billion in 2023, positioning itself as the 12th largest automotive manufacturer globally.
- Invest in Türkiye also noted that the country hosts around 162 R&D and design centers for automotive manufacturers and suppliers, with major global brands like Ford, Fiat, Daimler, etc., establishing base. Additionally, the localization rate of original equipment manufacturers (OEMs) ranges between 50% and 70%, which is crucial for the development of semiconductor technology for the automotive industry.
- The Turkish government further supports the automotive industry through various initiatives, which further creates opportunities for the studied market. For instance, the country’s Medium-Term Program (2024-2026) emphasizes high-value production, digital transformation, and export growth.
Market Forecast for Saudi Arabia
The automotive semiconductor market in Saudi Arabia is experiencing notable growth, driven by strategic initiatives and significant investments from the government. The Saudi Vision 2030, which aims to diversify and modernize the economy, includes substantial efforts to localize the semiconductor industry. Key to this growth is the partnership between the King Abdulaziz City for Science and Technology (KACST) and Alat, a Public Investment Fund (PIF) company. This partnership focuses on localization of the semiconductor industry through research, innovation, and the creation of a skilled workforce.
Additionally, the establishment of the Saudi National Semiconductor Hub aims to attract over SR1 billion in investment, supporting the design and manufacturing of electronic chips. This initiative is part of a broader strategy to localize semiconductor technology capabilities, which is expected to benefit various sectors, including automotive, AI, and renewable energy.
The market’s segmentation includes type of vehicle, application, type of fuel, and component. The type of vehicle segment consists of passenger cars, light commercial vehicles, and heavy commercial vehicles.
Passenger cars are the most ubiquitous form of transportation across the globe. Significant investments are directed into the ongoing enhancement of various design elements, including performance, materials, mechanical systems, engines and fuels (including electric power supply), pollution reduction, autonomous control, and ergonomics. Semiconductors play a crucial role as they are essential for various functionalities, including the operation of electric powertrains and the enhancement of safety features through ADAS. Semiconductors also enable the control systems that underpin autonomous driving technologies and ensure efficient energy use, contributing to overall vehicle performance.
Contender Analysis in the Automotive Semiconductor Market:
Microchip Technology Incorporated supplies microcontrollers and analog semiconductors for various customer needs. Its product line includes 8-bit, 16-bit, and 32-bit microcontrollers, along with high-performance linear and mixed-signal devices. The company also offers solutions for power and thermal management, radio frequency (RF) applications, timing, safety, security, etc. Microchip serves clients across multiple regions, including the Middle East and Africa.
In April 2024, Microchip Technology revealed an expanded collaboration with TSMC aimed at enhancing semiconductor production capabilities. This effort is part of a broader company strategy to boost supply chain resilience and will concentrate on advanced 40nm manufacturing processes for Microchip.
Other companies thriving in the automotive semiconductor market include Micron Technology Inc, ON Semiconductor Corporation, Robert Bosch GmbH, Rohm Co Ltd, Samsung Electronics Co Ltd, and NXP Semiconductors NV.