New York, USA, Jan. 31, 2023 (GLOBE NEWSWIRE) -- According to a report published by Research Dive, the global automotive semiconductor market is predicted to garner a revenue of $93,696.2 million and grow at a CAGR of 12.2% throughout the estimated timeframe from 2021 to 2028.
As per our analysts, with the increasing demand for safety features in the automobile industry, the automotive semiconductor market is expected to observe exponential growth during the estimated period. Besides, the increasing demand for vehicle electrification among people is predicted to foster the growth of the market throughout the analysis timeframe. Moreover, the rising demand for electric vehicles worldwide as industrial manufacturers are looking forward to minimizing the usage of combustion fuels is expected to create massive growth opportunities over the analysis timeframe. However, the increasing overall vehicle cost may impede the growth of the market during the forecast period.
Segments of the Market
The report has divided the automotive semiconductor market into segments based on component, vehicle type, propulsion type, application, and region.
Component: Processor Sub-Segment to be Most Productive
The processor sub-segment is predicted to generate a revenue of $21,367.6 million during the analysis timeframe. The growing innovation from the autonomous driving system is expected to bolster the growth of the market sub-segment during the estimated timeframe.
Vehicle-Type: Light Commercial Sub-Segment to be Most Profitable
The light commercial sub-segment is expected to garner a revenue of $33,651.0 million throughout the analysis period. This is mainly due to the stringent regulations imposed by governments all across the globe to decrease carbon emissions caused by diesel fuel ignition. Moreover, the increasing government initiatives and programs to promote the adoption of EV vehicles are predicted to uplift the growth of the market sub-segment over the forecast period.
Propulsion Type: Electric Engine Sub-Segment to be Most Lucrative
The electric engine sub-segment is predicted to generate a revenue of $36,720.1 million over the estimated timeframe. This is mainly because of the increasing demand for a decrease in the emission caused by petrol and diesel vehicles worldwide. Furthermore, the increasing use of a large number of semiconductors in the electric vehicle is expected to fortify the growth of the automotive semiconductor market sub-segment during the analysis timeframe.
Application: Telematics & Infotainment Sub-Segment to be Most Beneficial
The telematics & infotainment sub-segment is projected to generate a revenue of $30,947.6 million over the forecast timeframe. The increasing demand for wirelessly connected vehicles all across the globe in detecting the location of the car in case of emergencies is predicted to upsurge the growth of the market sub-segment throughout the estimated period.
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Region: Asia-Pacific Region to Have Wide Growth Opportunities
The Asia-Pacific region of the automotive semiconductor market is estimated to rise at a CAGR of 12.7% during the analysis timeframe. This is majorly due to the increasing automotive manufacturing hubs in this region. Moreover, the increasing use of semiconductor components in vehicles and the growing demand for luxury and semi-luxury vehicles across the region are the factors expected to drive the regional growth of the market over the estimated timeframe.
Covid-19 Impact on the Automotive Semiconductor Market
The outbreak of the Covid-19 pandemic has had a negative impact on the automotive semiconductor market. This is mainly due to the strict restrictions on the import and export of raw materials which has affected the semiconductor manufacturing organizations during the pandemic period. This has further affected the sales of the vehicles over that period. However, the increased government schemes for providing subsidies and various other facilities for the people adopting electric vehicles have uplifted the growth of the market during the period of crisis.
Key Players of the Market
The major players of the automotive semiconductor market include
- Infineon Technologies AG
- Micron Technology
- NXP Semiconductors N.V.
- Texas Instruments Inc.
- Renesas Electronics Corp.
- Analog Devices Inc.
- On Semiconductor Corp.
- STMicroelectronics N.V.
- ROHM Co. Ltd.
- Robert Bosch GmbH
These players are widely working on the development of new business strategies such as product development, mergers, and acquisitions, partnerships, and collaborations to obtain a leading position in the global industry- Inquire here to grab full report
For instance, in July 2022, STMicroelectronics, a Dutch multinational corporation and technology company announced its collaboration with Volkswagen Group, a leading Germany-based manufacturer of automobiles and commercial vehicles. With this collaboration, the companies aimed to develop a new semiconductor to provide tailored hardware for connectivity, and energy management, and to make vehicles fully software-defined, secured, and future-proof.
Further, the report also presents other crucial aspects including SWOT analysis, the financial performance of the key players, the product portfolio, and the latest strategic development.
More about Automotive Semiconductor Market:
- What are the Reasons for the Exponential Increase in Demand for Automotive Semiconductors?
- Strategic Partnerships, Technological Advancements, and Product Launches by Market Players such as ROHM, STMicroelectronics, and Others to Foster the Growth of the Global Automotive Semiconductor Market
