System Basis Chip Market - Forecast(2024 - 2030)

System Basis Chip Market Overview

The System Basis Chip Market size is estimated to reach $32 billion by 2027, growing at a CAGR of 10.5% during the forecast period 2022-2027. The market growth is attributed to the increasing vehicle production, the rising trend toward electric vehicles & automated guided vehicles, the growing demand for advanced safety & convenience systems in vehicles and so on. System Basis Chip is widely used in the control modules of sport utility vehicles & multi-utility vehicles. Additionally, government mandates to reduce vehicular emissions and rising environmental concerns create numerous opportunities for the integration of system basis chips in vehicles to increase power efficiency and reduce greenhouse gas emissions. Such factors are set to transform the System Basis Chip industry outlook in the coming time.

System Basis Chip Report Coverage

The “System Basis Chip Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the System Basis Chip Market.

Key Takeaways

• Heavy Commercial Vehicle market is analyzed to grow at the fastest rate during the forecast period 2022-2027, due to the rising trend towards commercial activities, government regulations for vehicle safety environmental norms and so on.
• System Basis Chip Market for body electronics is analyzed to grow with the highest CAGR during 2022-2027, owing to the rising demand for vehicle body electronics & lighting systems, growing adoption of adaptive headlights & efficient body motors systems and so on.
• North America dominated the System Basis Chip Market in 2021. It is because of the rising demand for premium cars, increasing adoption of sport utility vehicles, multi-utility vehicles & automated guided vehicles and other factors.
• Growing demand for raising comfort & vehicle safety standards and government mandates to reduce vehicular emissions & rising environmental concerns are analyzed to significantly drive the growth of the System Basis Chip Market during the forecast period 2022-2027.

System Basis Chip Market Value Share, by Region, 2021 (%)

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System Basis Chip Market Segment Analysis - by Vehicle Type

The Heavy Commercial Vehicle market is analyzed to grow at the fastest rate of 11.6% during the forecast period 2022-2027. This is due to the rising trend towards commercial activities like logistics, distribution & public transportation, government regulations for vehicle safety in combination with environmental norms and other factors. Additionally, system basis chips provide high integration, high performance and increased reliability at an optimized system cost resulting in their increased application in HCV. In July 2021, Microchip launched ATA663331, a new generation of system basis chip with LIN transceiver, designed to handle low-speed data communication in heavy vehicles. Such factors are accelerating the growth of the heavy commercial vehicles segment within the System Basis Chip industry over time.

System Basis Chip Market Segment Analysis - by Application

System Basis Chip Market for body electronics is analyzed to grow with the highest CAGR of 12.3% during 2022-2027. Factors attributing to this market growth include the rising demand for vehicle body electronics & lighting systems to ensure comfort & safety, the growing adoption of adaptive headlights & efficient body motors systems in vehicles and so on. Additionally, system basis chips are widely used in body control modules and gateways due to their increasing adoption in vehicles. In August 2022, Renesas launched the ZSSC1750, a system basis chip with a dual-channel analog to digital converter for body electronics & internal resistance monitoring. These factors are expected to boost the growth of body electronics applications within the System Basis Chip industry in the coming time.

System Basis Chip Market Segment Analysis - by Geography

North America dominated the System Basis Chip Market with a share of 36% in 2021, attributed to the rising demand for premium cars with high comfort & safety standards, increasing adoption of sport utility vehicles, multi-utility vehicles & automated guided vehicles and so on. Additionally, increasing research & investment due to the presence of major market players, namely Atmel Corporation and Texas Instruments, Inc., in the region is accelerating the market growth. According to Policyadvice report 2021, there is a rapid adoption of electric vehicles in the US, with Californians expected to see 4 million EVs by 2030. These factors transform the System Basis Chip industry outlook in North American markets.

System Basis Chip Market Drivers

Growing Demand for Raising Comfort & Vehicle Safety Standards:

Increasing demand for vehicles equipped with advanced mechanisms like battery management systems, electric power steering and transmission control is accelerating the market growth. System basis chips are used in automated guided vehicles to ensure predictive response and to customize device behavior. They increase convenience & comfortable by enabling high-speed communication and telematics. These chips are used in telematics & infotainment systems to monitor blind spots and analyze data to ensure passenger safety. According to a 2021 Forbes report, 55% of consumers prefer buying cars with front & rear parking sensors and 60% prefer buying cars with blind-spot monitoring. Suggesting that there is a growing demand for premium vehicles. In June 2022, NXP launched S32Z & S32E processors with FS86 ASIL system basis chips to ensure driver safety. These factors would help in expanding the System Basis Chip Market size.

Government Mandates to Reduce Vehicular Emissions in Addition to Rising Environmental Concerns:

Government initiatives towards reducing vehicle emissions combined with rising environmental issues are boosting market growth for System Basis Chips. In vehicles, system-based chip applications ensure power savings & long battery life by fueling microcontrollers and assisting DC/DC switching regulators in improving energy efficiency. Furthermore, when the vehicles are in sleep mode, the system basis chip serves to perform periodic battery discharge rate measurements. Thus, system basis chips are widely used in wakeup & watchdog timers to ensure power-saving, thereby encouraging the adoption of electric vehicles to ensure zero vehicular emission. In August 2021, Onsemi launched NCV7471, a system basis chip that monitors the power supplies in application microcontrollers and other components to ensure significant energy savings in EVs. Also, the UK government passed a resolution in 2020 to reduce carbon emissions to zero by 2050 by encouraging the adoption of electric vehicles, resulting in the increased adoption of system basis chips. Such factors are elevating the growth of the System Basis Chip Market size.

System Basis Chip Market Challenges

High Costs Related to Complex Circuit Designs and Integration of Varied Components:

High costs associated with complex circuit designs and component integration are impeding the growth of the System Basis Chip Market. The initial cost of designing and developing system basis chips is very high since they contain multiple functions of automotive electronic control units on a single chip. Integrating all systems on a single system basic chip increases complexity as it includes mixed signal components. In addition, these chips incorporate a combination of digital standard functionality like communication bus interfaces & analog which further complicates their development, resulting in their increased cost. According to Tanotis, the cost of a system basis chip ranges somewhere between $300 and $500. Such a high cost of chips is restricting their adoption and the growth of the System Basis Chip industry.

System Basis Chip Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the System Basis Chip Market. The top 10 companies in the System Basis Chip Market are:

1. Atmel Corporation
2. Elmos Semiconductor AG
3. Infineon Technologies AG
4. Melexis NV
5. Microchip Technology, Inc.
6. NXP Semiconductors NV
7. ON Semiconductor Corporation
8. Robert Bosch GmbH
9. STMicroelectronics NV
10. Texas Instruments, Inc.

Recent Developments

• In July 2022, STMicroelectronics collaborated with CARIAD to develop advanced automotive System Basis Chips to ensure connectivity and energy management.
• In December 2021, NXP Semiconductors launched an embedded software driver fitted with an FS8600 System Basis Chip for communication abstraction & watchdog settings in vehicles.
• In July 2021, Infineon launched lite and mid-range System Basis Chips, supporting ISO CAN FD protocol for communication at 5 Mbit/s in automobiles.

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