Automotive Semiconductor Market Worth $91 Billion By 2030: IndustryARC

Automotive Semiconductor market size is expected to reach $91 billion by 2030 after growing at a CAGR of 7.8% during the forecast period 2024-2030 according to the latest market research report published by IndustryARC. The growing demand for advanced automobile technologies  like ADAS, infotainment systems, and EV technologies, along with stringent emissions standards compliance, enhancing vehicle performance and safety are poised to propel the demand, finds IndustryARC in its recent report, titled “Automotive Semiconductor Market - By Vehicle Type (Passenger Vehicles (Mid-size car, Sedan, Minivan, Convertible, Crossover, Hybrid, Supercar), Light Commercial Vehicle (LCV) (Compact, Utility vehicle, Supermini, Light truck), Heavy Commercial Vehicle (HCV) (Mobile truck, Limo, Recreational vehicle, Towing trucks, Fire trucks)), By Fuel Type (Petrol, Diesel, EV, Hybrids), By Components (Power Semiconductors, Sensors, Memory Devices, Microcontrollers (MCUs), Connectivity Solutions, Analog ICs, ASICs and FPGAs) By Application (Powertrain Control, Body Electronics, Chassis Control, Safety Systems, Infotainment System, Advanced Driver Assistance Systems (ADAS)), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Growing Demand for Advanced Driver Assistance Systems (ADAS) Fuels Automotive Semiconductor Market:

The increased demand for automotive semiconductor is driven by growing consumer interest in advanced automobile technologies. Additionally, there is a growing trend towards Advanced Driver Assistance Systems (ADAS), consumers are demanding vehicles equipped with advanced safety features capable of automatically identifying traffic hazards, taking control to steer and brake, and ultimately preventing accidents. According to a 2024 European Transport Research Review report, studies indicate that Forward Collision Prevention technology can lower crash rates by 29%, Lane Keeping Assistance by 19%, and Blind Zone Detection by 9%. Moreover, automakers such as Volvo employ Bosch's driver drowsiness detection system as part of their advanced driver assistance systems (ADAS). This technology continuously monitors a driver's steering behavior from the start of a journey.. Heeding these warnings can help prevent accidents caused by driver fatigue. Thus, the demand for advanced automobile technology is expected to have a significant impact on the Automotive Semiconductor industry.

•  Passenger Vehicles 

•  Light Commercial Vehicle (LCV) 

•  Heavy Commercial Vehicle (HCV) 

•  Petrol

•  Diesel

•  EV

•  Hybrids

•  Power Semiconductors

•  Sensors

•  Memory Devices

•  Microcontrollers (MCUs)

•  Connectivity Solutions

•  Analog ICs

•  ASICs

•  FPGAs

•  Powertrain Control

•  Body Electronics

•  Chassis Control

•  Safety Systems

•  Infotainment System

•  Advanced Driver Assistance Systems (ADAS)

•  North America 

•  Europe 

•  Asia Pacific 

•  South America 

•  RoW (Middle East and Africa)

o  Car owners are increasingly customizing their vehicles, either by upgrading older models or purchasing base models and adding features. This trend is driving demand for aftermarket electronic parts such as infotainment systems, parking sensors, and tire pressure monitors. Additionally, some owners are enhancing their car's performance by installing standalone ECUs and tuning boxes. According to an article by Fortune, advanced connectivity and interactivity technologies like vehicle-to-everything (V2X) and in-car multimedia systems are becoming more popular, allowing drivers to personalize their driving experience further. A report by DC Advisory highlights that the specialty equipment market was valued at $50.9 billion in 2022, with significant growth in vehicle customization and performance upgrades. This growing popularity of electronic automotive components is a major factor contributing to the semiconductor market's expansion. 

o  The passenger vehicle segment dominates the automotive semiconductor market. According to Marklines Data Center, passenger car sales in the US were up 8.1% to 3,227,425 units for 2023. The increasing sales of passenger vehicles boosts the adoption of advanced telematics and infotainment features in passenger vehicles, which require a substantial number of semiconductors. Additionally, the growing focus on vehicle safety systems and the rise of electric vehicles contribute significantly to the demand for automotive semiconductors. Government regulations focusing on vehicle safety, also play a crucial role in this trend.

o  The Asia-Pacific region, particularly China, is currently leading the automotive semiconductor market. According to the Semiconductor Industry Association (SIA), China remains the largest market for semiconductors globally, driven by high demand and significant investments in automotive technology. Furthermore, China is the largest market for EVs. According to the Global EV outlook 2024 by the International Energy Agency (IEA), in China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022.

The U.S. government’s initiatives under the CHIPS and Science Act represent a significant opportunity for the automotive semiconductor market by strengthening domestic supply chains. The Biden-Harris Administration’s commitment to onshoring semiconductor production addresses the vulnerabilities exposed during the COVID-19 pandemic, which saw severe disruptions in semiconductor supplies. Key investments include Microchip Technology Inc.'s $162 million investment to increase U.S. production of microcontroller units and other specialty semiconductors, creating over 700 jobs and tripling output at facilities in Colorado and Oregon, and GlobalFoundries' proposed $1.5 billion investment to expand domestic production, including a new 300 mm fabrication facility in New York, expected to significantly enhance capacity for automotive semiconductors, according to the U.S. Department of Commerce.

The automotive semiconductor market faces significant challenges due to shortages of critical raw materials used in semiconductor manufacturing. Key materials like silicon, rare earth elements, and other specialized metals are in short supply, impacting production capabilities. This shortage is exacerbated by increased global demand for semiconductors across various industries, including consumer electronics and renewable energy. The U.S. Geological Survey has reported that the demand for these raw materials is outpacing supply, leading to higher costs and supply chain disruptions. This presents an opportunity for market players to invest in alternative materials, recycling technologies, and more efficient supply chain management to mitigate the impact of these shortages.

•  Automotive Semiconductor Market size and Forecast 

•  Automotive Semiconductor Market trends

•  Automotive Semiconductor Market analysis by grade

•  CAGR of the market during the forecast period 2024-2030

•  Value Chain analysis of key stake holders

•  Detailed analysis of market drivers and opportunities during the forecast period

•  Automotive Semiconductor market size estimation and forecast

•  Analysis and predictions on end user behavior and upcoming trends 

•  Competitive landscape and Vendor market analysis including offerings, developments, and financials

•  Comprehensive analysis of challenges and constraints in the Automotive Semiconductor Market

•  NXP Semiconductors N.V.

•  Infineon Technologies AG 

•  Texas Instruments Inc.

•  Renesas Electronics Corporation 

•  STMicroelectronics N.V

•  Qualcomm Incorporated

•  Broadcom Inc.

•  Bosch

•  Valeo

•  On Semiconductor Corporation

•  Analog Devices, Inc.

•  Micron Technology, Inc.

•  Rohm Semiconductor

•  Toshiba Corporation

•  Maxim Integrated Products, Inc.

Advanced Driver Assistance Systems market- Advanced Driver Assistance Systems market is projected to reach $91.8 billion by 2025 at a CAGR of 20.9% during the forecast period 2024-2030, owing to its usage in automotive applications, such as adaptive cruise control, blind spot monitor, collision avoidance system, lane departure warning systems, and driver monitoring system.

Electric Vehicle Market- Electric Vehicle Market is projected to reach $726.14 billion by 2026 at a CAGR of 27.19% during the forecast period 2024-2030. The increasing adoption of electric vehicles in the transportation sector is driving market growth.

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets.  

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format which assists an intelligent and informed decision-making process.