The global automotive semiconductor market was valued at USD 40.82 billion in 2018 and is expected to reach a value of USD 109.56 billion by 2024 at a CAGR of 17.9 %, over the forecast period 2019-2024
Semiconductor ICs with different functionalities are used in various automotive products, like navigation control, infotainment systems, and collision detection systems. The inclusion of these features has an impact on automobile sales.
Electrification, connected and automated driving are making significant progress. Connected vehicles are the key drivers for consumers accustomed to rich user experiences. The 2018 Consumer Electronics Show attracted the leading high-tech companies across sectors and featured exhibits on mobility solutions for cars.
The Electric Vehicles include electrification of the drivetrains, which may lead to an expansion of semiconductors usage in an automobile, as hybrid vehicle drivetrains use more electronic devices in comparison to regular Internal Combustion (IC) drivetrains.
Key Market Trends
Safety Application is expected to Register Highest Growth Rate
Owing to rising demand for safety features designed to avoid collisions and accidents by offering technologies that alert the driver to potential problems or to avoid collisions by implementing safeguards and taking over control of the vehicle, ADAS (Advanced Driver Assistance Systems) sales are expected to flourish in the future. Semiconductors find their application in ADAS to enhance its functionality.
Continued strong growth in demand for driver assistance systems is ensuring that more semiconductors with more and more functions are finding their way into cars. Chips with built-in 'intelligence,' known as ASICs, are tailored to a particular application. For instance, signaling the airbags in a vehicle when they should deploy. These chips control handling to ensure a consistently safe journey. Bosch launched SMA7xy MEMS sensor which focusses on faster airbag deployment.
With the introduction of the concept of driverless cars, semiconductors can be used for the function of Blind Spot Detection. The blind spot monitor is a vehicle-based sensor device that detects other vehicles located to the driver's side and rear. With the introduction of LIDAR mapping technology into the automobile sector, the use of semiconductors in vehicles can be widened.
Asia-Pacific to Witness Highest Growth Rate
The vehicle production has increased in recent years, and more and more vehicles are increasingly incorporating vehicle electrical systems that require power diodes and voltage regulators of exceptional reliability. The electrification and automation of automobiles have led to increased demand in semiconductor wafers.
The growth of the electric vehicle market in the region is associated majorly with the production of the electric motors for automotive applications in countries, like India and China.
On 7 March 2019, the Indian government officially announced a 15% import subsidy on lithium. This indicates the ease of electric vehicle production in the country. Policy negotiations between the Prime Minister's Office and the Department of Heavy Industry (DHI), the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles scheme, was passed to make India ride on the path to electric mobility.
China has 330,000 public charging points, compared with 67,500 in the U.S., according to an MIT study. Shenzhen City has a 100 percent electric fleet of 16,000 buses and is switching its 22,000 taxis to EVs. The resort island of Hainan plans for 100 percent adoption of EVs by 2030.
The market witnesses high competition due to presence of number of players like STMicroelectronics, NXP Semiconductor NV among others. The competitive environment requires technological upgrades and significant capital requirement and investment in research and development for scalability.
On March 2019, Infineon Technologies made an announcement to expand its research and development center for radar sensors to be used in driver assistance systems.
ON Semiconductor decided that it would raise its ownership stake to 100 percent in the first half of 2020 to help meet mounting demand for power and analog semiconductors.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Market Overview 4.2 Market Drivers 4.2.1 Increasing Vehicle Production 4.2.2 Rising Demand for Advanced Safety and Comfort Systems 4.3 Market Restraints 4.3.1 Higher Costs of Advanced Featured Vehicles 4.4 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION 5.1 Vehicle Type 5.1.1 Passenger Vehicle 5.1.2 Light Commercial Vehicle 5.1.3 Heavy Commercial Vehicle 5.1.4 Other Vehicle Types 5.2 Component 5.2.1 Sensors 5.2.2 Discrete 5.2.3 Analog 5.2.4 Logic 5.2.5 Microcomponents 5.2.6 Memory Devices 5.3 Fuel 5.3.1 Gasoline 5.3.2 Diesel 5.3.3 Electric and Hybrid 5.4 Application 5.4.1 Chassis 5.4.2 Power Electronics 5.4.3 Body Electronics 5.4.4 Safety 5.4.5 Comfort/Entertainment Unit 5.4.6 Other Applications 5.5 Geography
6 COMPETITIVE LANDSCAPE 6.1 Vendor Market Share 6.2 Company Profiles 6.2.1 Renesas Electronics Corporation 6.2.2 Infineon Technologies AG 6.2.3 STMicroelectronics 6.2.4 NXP Semiconductor NV 6.2.5 Texas Instrument Inc. 6.2.6 ON Semiconductor Corporation 6.2.7 Toshiba Corporation 6.2.8 Analog Devices Inc. 6.2.9 Robert Bosch GmbH 6.2.10 ROHM Co. Ltd