The global automotive semiconductor market is poised to witness significant growth, with a projected compound annual growth rate (CAGR) of 11.97% from 2022 to 2028. A new report from Research and Markets points out that this rapid growth is primarily due to the increased development of self-driving cars. Demand for automotive semiconductors, including sensors, processors, and communication technologies, is increasing.
The semiconductor market is characterized by significant fragmentation, with both domestic and foreign players. Major global vendors include Robert Bosch, Continental, Infineon Technologies, NXP Semiconductors, DENSO Corporation, and Renesas Electronic Corporation. Competition between these industry giants is fierce, increasing the need for continuous innovation to maintain a strong market presence.
The driving force behind growth
1. Growing electric vehicle (EV) industry
The fast-growing EV sector has emerged as a pivotal force driving the automotive semiconductor market. EVs require advanced power electronics and rely on critical semiconductors such as insulated gate bipolar transistors (IGBTs) and silicon carbide (SiC) devices for efficient power conversion and energy management. Semiconductors play a critical role in battery management systems (BMS), ensuring optimal performance and safety through voltage and current sensing, temperature monitoring, and cell balancing.
2. Semiconductor shortage
However, the industry faces a significant challenge: a semiconductor shortage. This shortage will ripple through the global automotive industry, leading to production delays, reduced vehicle availability, and supply chain disruptions. A comprehensive and collaborative approach between stakeholders is essential to address this multifaceted challenge.
market segmentation
By component, microcontrollers dominate the market, contributing around 37% of the global automotive semiconductor market. The various components of this market are driven by factors such as innovation, technological advances, consumer demand, and regulatory standards, which collectively impact vehicle performance, safety, connectivity, and user experience.
In terms of applications, the powertrain application segment will take the lead in 2022. Modern powertrain systems are becoming increasingly complex, requiring powerful and sophisticated semiconductors for efficient control. Additionally, safety systems such as adaptive cruise control, lane departure warning, and automatic emergency braking rely heavily on semiconductor components.
By vehicle type, passenger cars are leading the market due to new features and the growth of the electric vehicle industry. Semiconductors in passenger cars are used for a variety of purposes, from infotainment systems and ADAS functions to powertrain control. Commercial vehicles, driven by powertrain controls, telematics, fleet management systems, safety features, and in-vehicle technology, are also seeing a growing need for advanced semiconductor solutions.
geographical analysis
According to the report, Asia Pacific (APAC) has emerged as the dominant force in the global automotive semiconductor market, exhibiting a CAGR of approximately 12%. This advantage is driven by economic growth, business expansion and increased automotive activity, especially in China. The region's semiconductor manufacturers, such as Taiwan's TSMC and South Korea's Samsung, play a key role in providing advanced manufacturing capabilities for automotive chips.
Opportunities, trends and growth drivers
This report identifies several opportunities and trends shaping the market, including increasing adoption of silicon carbide, advancements in modern vehicle features, rise of self-driving cars, and high demand for infotainment and telematics services. . Factors enabling market growth include the expanding electric vehicle industry, widespread adoption of system-on-chips, and demand for advanced automotive semiconductors to power AI, ML, and IoT.
Challenges and constraints
On the other hand, market constraints include a shortage of skilled labor, particularly semiconductors. These challenges highlight the need for strategic intervention and collaborative efforts within the industry.
In conclusion, the global automotive semiconductor market presents a landscape of opportunities and challenges while navigating technological advancements, market dynamics, and the transformative transition to electrification of the automotive industry. To harness market potential and effectively address evolving challenges, stakeholders must remain agile, innovative and collaborative, the report says.
Provided by: Research and Markets. The photos are representative. Provided by: Renesas.
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