Automotive Semiconductor Market Size, Growth, Forecasts 2028

Automotive Semiconductor Market to 2027 - Global Analysis and Forecasts by Component (Optical, Sensors & Actuators, Memory, Microcontrollers, Analog ICs, Logic and Discrete Power Devices); Application (Advanced Driver Assistance Systems, Body Electronics, Infotainment, Powertrain, Safety Systems); Vehicle Type (Passenger, LCV, and HCV)

Publication Month : Jan 2019

  • Report Code : TIPEL00002655
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 182
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The automotive semiconductor market was valued at US$ 34.89 billion in 2017 and is expected to reach US$ 76.93 billion by 2027; it is estimated to register a CAGR of 8.3% from 2018 to 2027. 

With the introduction of numerous technologies, such as 3D mapping applications, the emergence of electric vehicles, automobile automation, and many others, the automobile industry has changed significantly in recent years. This has boosted the demand for advanced semiconductors such as sensors, memory devices, and integrated circuits.

Automobile electrification and automation are significant industry drivers that have resulted in increased demand for semiconductor wafers. Varied automotive products, such as navigation control, entertainment systems, and collision detection systems, utilize semiconductor ICs with various functionalities. The presence of these features has an effect on vehicle sales.

Advanced technology, such as matrix LED lighting, upgraded LiDAR sensors, and ADAS systems, have been increasingly implemented into mass production of cars in recent years. Improvements have also been made in 3D mapping applications, electric vehicle batteries, and augmented-reality technology such as head-up displays. In addition, 5G networks have enabled the sector's next generation of mobility solutions. Advanced driver assistance systems (ADAS) sales are expected to grow in the future due to rising demand for safety features that are designed to prevent collisions and accidents by providing technologies that alert drivers about potential problems (or to avoid collisions by implementing safeguards and taking control of the vehicle). Cost and fuel efficiency are no longer the most significant variables to consider while purchasing a vehicle; instead, the vehicle's comfort and luxury are given preference. This could be attributable to the fact that global automobile manufacturers are seeing strong demand for luxury and semi-luxury automobiles, forcing them to install more electronic components. As a result, Asia Pacific represents a potentially lucrative automotive semiconductor market

The increased demand for electric vehicles is predicted to fuel the rapid expansion of the automotive semiconductor sector in Asia Pacific. Self-driving cars have garnered a large number of buyers in crucial automotive manufacturing countries; therefore, automakers must continue to innovate, produce, and improve them. Factors including technological improvements, consumer readiness to embrace fully automated vehicles, pricing, and suppliers' and OEMs' capacity to address major concerns about vehicle safety are projected to have a significant impact on the growth trajectory of fully autonomous vehicles.

China is one of the major contributors to the automotive semiconductor market in Asia Pacific. This scenario is due to an increase in the use of safety features in vehicles and an increase in infotainment applications such as navigation. ADAS systems have also grown in popularity, with features such as parking assist, adaptive cruise control, lane-departure warning, forward collision warning, and blind-spot recognition contributing significantly to the automotive semiconductor market's growth. Currently, domestic OEMs dominate the Chinese EV industry, with a sales share of roughly 94% (Source: IEA). China has put a quota on automakers for 100% electric or hybrid vehicles, which may account for at least 10% of total new vehicle sales. Furthermore, some large cities and provinces are enacting stricter regulations. Aside from that, manufacturers in the country are working to minimize their present GHG emissions by optimizing their powertrain system design and focusing on lightweight and smaller powertrain systems that deliver higher performance.

Automotive Semiconductor Market Insights
Continuous Partnership of Automotive OEMs with Semiconductor Manufacturers

The automotive industry is compelled to integrate their vehicles with advanced electronics and semiconductor components to enhance the vehicular performance. The rising drift of electrification of vehicles is a major factor boosting the semiconductor market in the automotive industry. Attributing to this, the automobile manufacturers are increasingly partnering with semiconductor manufacturers to meet the demands of their customers. For instance, in January 2018, Audi AG partnered with ON Semiconductor to foster ON Semiconductor’s innovations and integrate their semiconductors on their newer models, thereby meeting the changing expectations of consumers in terms of safety, reliability, and performance.

Lucrative Regions for Automotive Semiconductor Market

Lucrative Regions for Automotive Semiconductor Market
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Component-Based Market Insights

Based on component, the microcontrollers segment dominated the global automotive semiconductor market in 2017. Micro-controllers in an automobile play a critical role in smooth operation, and the application of micro-controllers ranges widely from seat movements, power windows, taillights, braking, headlights, and steering.

Application-Based Market Insights

Based on application, the ADAS dominated the global automotive semiconductor market in 2017. The automotive industry in the past few years have witnessed significant rise in vehicular accidents due to which automotive manufacturers, along with their technology partners, have innovated several technologies that largely benefit the industry.

Automotive Semiconductor Market, by Vehicle Type (% Share)

Automotive Semiconductor Market, by Vehicle Type (% Share)
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Automotive Semiconductor Market: Strategic Insights

Market Size Value inUS$ 34.89 billion in 2017
Market Size Value byUS$ 76.93 billion by 2027
Growth rateCAGR of 8.3% from 2018 to 2027
Forecast Period2018-2027
Base Year2018
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NVIDIA Corporation, Intel Corporation, NXP Semiconductors N.V., Infineon Technologies AG, Rohm Semiconductor, Texas Instruments Inc., Renesas Electronics Corporation, Robert Bosch GmbH, ON Semiconductor Corporation, and STMicroelectronics N.V. are among the major players operating in the automotive semiconductor market. The players adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

  • ROHM announced the development of new SerDes ICs and PMICs primarily for car satellite cameras to support Advanced Driver Assistance Systems in September 2021. (ADAS). These devices will aid in ADAS system module compactness, low power consumption, and low electromagnetic noise.
  • STMicroelectronics announced an anchor partnership with startup Autobahn in July 2021; Autobahn's anchor partnership includes major car brands and vendors, with STMicroelectronics providing semiconductor support. The main focus will be on smart mobility for electric and smart-connected driving vehicles.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component ; Application ; Vehicle Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies

1. NVidia Corporation
2. Intel Corporation
3. NXP Semiconductors N.V.
4. Infineon Technologies AG
5. Rohm Semiconductor
6. Texas Instruments Inc.
7. Renesas Electronics Corporation
8. Robert Bosch Gmbh
9. ON Semiconductor Corporation
10. STMicroelectronics N.V.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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