Semiconductors are used in automobiles to ensure that the connected component functions optimally under all conditions. Silicon and germanium are essential to the proper operation of vehicle electronics and are the primary components of semiconductors used in automobiles. Semiconductors in vehicles contribute to the performance of a variety of tasks, including the operation of the vehicle's air conditioning system and the maintenance of the vehicle's safety. To accomplish the majority of what has been done in the field of automotive development, semiconductors are required. This is due to the fact that modern automobiles have features like the integration of mobile phones, comfort, autonomous driving assistance, and performance.
Integrated circuits (ICs) made of semiconductors are utilized in a variety of automotive devices, including navigation control, information and entertainment systems, and collision detection systems, amongst others. As a result of the growing demand among customers for high-tech and totally hands-off automobiles, semiconductors are anticipated to play an increasingly important role in the development of the automotive industry in the next years.
The Automotive Semiconductor Market is expected to reach USD 66.59 billion by 2028, growing at a CAGR of 6% over the forecast period 2022 and 2028.
By Component, the global market has been segmented into processors, sensors, integrated circuits, discrete Power, memory, and others based on the various component segments that make up the market. By the year 2022, the worldwide automotive semiconductor market is expected to be dominated by the integrated circuits sector. In the event of an accident or collision, the driver is given a warning by the automotive chip, which is incorporated into the car.
By Application, the global market has been segmented into Chassis, Safety, Powertrain, Telematics & Infotainment, and Body Electronics based on the application segments that make up the market. By the year 2022, the worldwide automotive semiconductor market is expected to be dominated by the body electronics sector. Powertrain and safety are the fastest-growing areas for semiconductor utilization in automobiles.
By Vehicle Type, the global market has been segmented into passenger vehicles, LCV, and HCV based on the vehicle type segments that make up the market. By the year 2022, the worldwide automotive semiconductor market is expected to be dominated by the passenger vehicles sector. This expansion might be attributed to the robust demand for passenger autos that is seen all throughout the world.
The Asia-Pacific region was the dominant player in the global market. By the year 2020, the region will hold a market share that is greater than 42 percent. As a result of the expansion of the automotive industry, particularly in rapidly developing nations such as India, China, and Japan, it is anticipated that this area will be the market with the highest rate of growth throughout the course of the projected period. China dominated the market in the Asia Pacific region in 2020, and it is anticipated that it would maintain this position throughout the forecast period. Additionally, it is anticipated that the region's rapidly developing e-commerce business would contribute to an increase in demand for commercial cars in the years to come.
It is anticipated that Europe would have the second-highest CAGR, which will be greater than 5.5 percent. The demand for electric vehicles is anticipated to rise in Europe, which will boost the expansion of the industry. Automakers are continually focusing on designing, improving, and developing autonomous vehicles, which have attracted a considerable number of purchasers in important automotive manufacturing countries. These countries include the United States, China, Europe, and Japan.
Analog Devices, Inc., Micron Technology, Renesas Electronics Corp., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corp., On Semiconductor Corp, Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics N.V., Toshiba Corp., and Texas Instruments, Inc. are some of the well-known players in the Automotive Semiconductor Market.