Automotive Semiconductor Market Share, Growth, Trends and Forecast 2028

Automotive Semiconductor Industry Overview

The global automotive semiconductor market size is expected to reach USD 63.92 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.2% from 2021 to 2028. The growing focus on vehicle safety systems and a significant increase in the adoption of engine control units (ECUs) in modern automobiles are anticipated to drive the demand for automotive semiconductors. Moreover, emerging technologies such as 5G and IoT are expected to play an instrumental role in increasing the demand for automotive semiconductors. Additionally, electric vehicles and all levels of assisted driving technologies are expected to create considerable growth opportunities over the next eight years.

 

Automotive Semiconductor Market Segmentation

Grand View Research has segmented the global automotive semiconductor market based on component, vehicle type, application, and region:

 

Based on the Component Insights, the market is segmented into Processor, Discrete Power, Sensor, Memory, and Others

• Based on components, the market is segmented into the processor, discrete power, sensor, memory, and others. In 2020, the other component segment, which includes analog ICs and logic ICs, accounted for the largest revenue share of around 30% and is expected to expand at a CAGR of over 3.0% over the forecast period.
• The demand for semiconductors in the automotive industry extends across all component types. These components help enhance vehicle electrification, connectivity and shared mobility services. The automotive chip, which is integrated into the vehicle, notifies the driver with a warning and helps take the correct actions in the case of an accident or a crash. Logic ICs are highly used in navigation and infotainment systems.
• The discrete power, memory, processor, and sensor segments are anticipated to play key roles in driving the market growth. The discrete power segment is expected to witness the fastest growth over the forecast period. The memory devices segment is projected to emerge as the second-fastest growing component segment. This growth can be mainly attributed to the ongoing electrification of the major applications of automobiles such as powertrain, which is creating more demand for power components such as IGBT and MOSFET.

 

Based on the Vehicle Type Insights, the market is segmented into Passenger Vehicle, Light Commercial Vehicle (LCV), and Heavy Commercial (HCV)

• The passenger vehicles segment accounted for the largest market share of over 65% in 2020 and is expected to continue leading the market throughout the forecast period. This growth can be attributed to the high demand for passenger cars across the globe. Moreover, increasing the installation of automotive infotainment systems in passenger cars for hands-free phone connectivity and providing navigational services, climate control, voice control, parking assistance, two-way communication tools, and access to the internet is further stimulating the segment’s growth.
• The light commercial vehicle segment is expected to expand at a CAGR of 4.6% over the forecast period, providing a huge scope to the global growth of the market. Rapid urbanization, improvements in road infrastructure, regulatory policies for buying commercial vehicles, and growth of mining and e-commerce activities are expected to drive the growth of light and heavy commercial vehicles over the next eight years.

 

Based on the Application Insights, the market is segmented into Chassis, Powertrain, Safety, Telematics & Infotainment, and Body Electronics

• The body electronics segment accounted for the highest share of around 24% in 2020 and is expected to expand at a CAGR of over 4.0% from 2021 to 2028. The fastest-growing applications involving the consumption of semiconductors in a vehicle are telematics and infotainment, powertrain, and safety. The telematics & infotainment segment is projected to register the highest CAGR of more than 9.0% over the forecast period and is anticipated to hold the highest share by the end of the forecast period.
• The increasing competition to provide better comfort and convenience to their customers is encouraging automobile manufacturers to use more semiconductor components for telematics and infotainment and safety applications. Moreover, stringent regulations and standards are generating more demand for semiconductor components in safety and powertrain applications, thereby driving the growth of the market.

 

Automotive Semiconductor Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

 

Key Companies Profile & Market Share Insights

The players in the market are focusing on product launches to expand product offerings and meet consumer demands.

Some of the prominent players operating in the global automotive semiconductor market are:

• Analog Devices, Inc.
• Infineon Technologies AG
• NXP Semiconductors
• Renesas Electronics Corporation
• Robert Bosch GmbH
• ROHM CO., LTD.
• Semiconductor Components Industries, LLC
• STMicroelectronics
• Texas Instruments Incorporated
• TOSHIBA CORPORATION

 

Order a free sample PDF of the Automotive Semiconductor Market Intelligence Study, published by Grand View Research.