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.
Electrification in the automotive industry is growing
rapidly owing to the rising need to reduce carbon emissions. Having realized
the importance of electric vehicle business opportunities, several
manufacturers are increasingly investing in smart technologies, electronics,
and safety systems. Such components of electric vehicles comprise
semiconductors equipped with advanced technologies to improve the
functionalities of smart electronics. For instance, the application of shock
sensors, MEMS accelerometers, MEMS gyroscopes, inertial sensors, tilt sensors,
and MEMS microphones for roll over detection, electronic braking, dynamic head
lighting, inertial navigation, and airbag safety systems. Hence, as the demand
for hybrid and electric vehicles increases, the need for semiconductors is
anticipated to increase over the forecast period.
The outbreak of the COVID-19 pandemic hampered the
overall business scenario in 2020, and the economy is expected to continue
experiencing its aftermath over the next few years. The market witnessed a
negative impact as major automotive fabricating units were shut and their
production was completely halted in response to lockdown measures across the
world. Additionally, the pandemic caused an unrealistic disturbance in the
production and supply chain network. This influenced R&D and capital investments.
The market experienced a substantial decline, of nearly -7.0%, in 2020.
However, the impact of the pandemic started reducing with the reduction in
positive cases and the launch of vaccination campaigns across several
countries. As a result, governments across the globe eased the lockdowns and
restrictions, thereby leading to a restart in manufacturing operations in the
automotive semiconductor industry.
Safety guidelines and regulations imposed by
governments are expected to play a key role in driving the demand for
semiconductors in North American and European markets. For instance, a special
focus on accident avoidance through ADAS is expected to help drive market
growth in countries across these regions. The Asia Pacific region, led by
China, is projected to emerge as the fastest-growing market owing to rapid EV
adoption and strong government support.
Related Press Release@ Automotive Semiconductor Market Report
Automotive Semiconductor Market
Report Highlights
- In 2020, the others component segment, which includes analog ICs
and logic ICs, accounted for the highest share as logic ICs are widely
used in navigation and infotainment systems
- In terms of vehicle type, passenger vehicle emerged as the dominant
segment in 2020 and is anticipated to retain its dominance over the
forecast period
- The telematics and infotainment segment is projected to expand at
the highest CAGR of more than 9.0% over the forecast period and is
anticipated to hold a dominant share by the end of the forecast period
- The Asia Pacific market emerged as the dominant region in 2020 and
is projected to register the highest CAGR over the forecast period
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.
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