New York, USA, March 30, 2022 (GLOBE NEWSWIRE) -- According to the latest report published by Research Dive, the global automotive semiconductor market is predicted to rise at a tremendous CAGR of 12.2%, thereby garnering a revenue of $93,696.2 million in the 2021-2028 timeframe. This integrated report presents a brief outlook of the current framework of the automotive semiconductor market including its cardinal features like growth drivers, growth opportunities, restraints, and hindrances during the forecast timeframe of 2021-2028. All the necessary market figures are also provided in this report to help new entrants analyze the market easily.
Dynamics of the Market
Drivers: Growing popularity of electric cars and the consequent use of automotive semiconductors is estimated to drive the growth of the global automotive semiconductor market by 2028. Moreover, increasing safety concerns over vehicular transport is compelling vehicle manufacturers and buyers to prefer cars with automotive semiconductors. This has further augmented the growth of this market by 2028.
Opportunities: Mergers, acquisitions and business expansions by key players in the automotive semiconductor market are expected to offer huge growth opportunities to the market. Additionally, since there is an increasing demand for electric vehicles, many new automobile manufacturers are entering this arena of electric vehicle manufacturing. This will also increase the growth opportunities that are available to the automotive semiconductor industry by 2028.
Restraints: Exorbitant prices of vehicles across the world is the major factor expected to impede the market growth.
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Impact of Covid-19 on the Market
The novel coronavirus has wreaked havoc in the world. Millions of lives are affected, either directly due to the disease, or indirectly due to government-imposed lockdowns to curb the spread of the virus. This affected numerous manufacturing and service industries by hampering both the supply-side and demand-side supply chains. Similarly, the automobile manufacturing industry and consequently, the automotive semiconductor market faced dual problems of irregular supply of raw materials and reduced demand for manufactured products that resulted in the fall of the market growth.
However, given the rate at which developing economies have turned around the sorry state of their economic conditions as soon as lockdowns were lifted, presents a hopeful picture for many industries. Moreover, various governments have started giving subsidies on electric vehicles to counter the fall in demand for automobiles. All these factors together have made market analysts predict that the automotive semiconductor market is bound to grow in the forecast period.
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Segments of the Market
The report has divided the global automotive semiconductor market into certain segments based on component, vehicle type, propulsion type, application, and region.
Component: Processor Sub-segment to be the Most Lucrative
Among all types of automotive semiconductors, processors are the most widely used components. They help in controlling various parts of the vehicle and at the same time act as the coordinator between various actions taken by the user. Moreover, many different types of automotive semiconductors like sensors, or different components of vehicles like control lights, navigation systems, run with the help of processors. Thus, the crucial role played by processors in the working of any vehicle has helped in making the processor sub-segment of the global automotive semiconductor market the fastest growing among others. This sub-segment is predicted to garner a revenue of $21,367.6 million by 2028.
Vehicle Type: Light Commercial Sub-segment to be the Most Dominant
By vehicle type, light commercial sub-segment is expected to be the fastest growing of the automotive semiconductor market and is predicted to reach $33,651.0 million by 2028. The main reason behind this anticipated growth is the growing popularity for adoption of electric vehicles among people. Moreover, various governments have formulated policies to cut down the carbon emissions that are created due to vehicles running on conventional fossil fuels. Both these factors have helped in the growing of this sub-segment.
Propulsion Type: Electric Engine Sub-segment to be the Fastest Growing
By propulsion type, electric engine sub-segment is expected to be the fastest growing of the automotive semiconductor industry. It is expected to gather a huge revenue of $36,720.1 million by 2018. The growing awareness about climate change and global warming have convinced many governments to legislate and formulate laws that curb the vehicular emissions that arise due to combustion of conventional fossil fuels. Moreover, the ever-increasing prices of crude oil and petrol across the globe have made people consider electric vehicles as a serious option to traditional vehicles. As a result, there is a growing demand for electric vehicles (EVs)- both for public transport purposes and individual use. This growing demand for EVs is, in turn, expected to boost the automotive semiconductor market.
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Application: Telematics and Infotainment Sub-segment to Flourish Immensely
By application, telematics and infotainment sub-segment is expected to grow the highest by garnering a substantial revenue of $30,947.6 million by 2028. Wireless technology which helps the user to locate his/her own car during emergencies has helped this sub-segment to flourish. Also, easy exchange of information across wirelessly connected cars has made telematics and infotainment sub-segment the highest gaining of the automotive semiconductor market.
Region: Market in the Asia-Pacific Region to be the Fastest Growing
By regional analysis, the market in Asia-Pacific region is predicted to be the fastest growing one. It is expected to amass a revenue of $21,615.7 million by 2028. Direct partnerships between automotive semiconductor manufacturers and the vehicle OEMs have been the prime reason behind this high growth rate of market in Asia-Pacific region. Moreover, this region has been witnessing a rise in demand for luxury and semi-luxury vehicles that has further helped in boosting the automotive semiconductor market.
Prominent Market Players:
Some of the prominent players of the global industry are
- NXP Semiconductors
- Texas Instruments Inc.
- STMicroelectronics N.V.
- Micron Technology
- Analog Devices Inc.
- Infineon Technologies AG
- Renesas Electronics Corp.
- Robert Bosch GmbH
- On Semiconductor Corp.
- ROHM Co. Ltd.
These players are adopting various business strategies like mergers, acquisitions, and collaborations to gain a prominent position in the market.
For instance, in January 2022, Infineon Technologies AG, a German semiconductor manufacturing giant, and Deeyook, an Israeli firm, announced that they will be collaborating to provide precise location solutions. The main area of focus of this collaboration would be to provide new Internet-of-Things (IoT) solutions that will help in several location tracking technologies and thus can be integrated with vehicular GPS or RFID technologies.
Finally, the report also summarizes many crucial aspects of the automotive semiconductor market including SWOT analysis, latest strategic developments, financial performance of the key players, and product portfolio.
Full Report Overview & TOC: https://www.researchdive.com/8547/automotive-semiconductor-market
Related links:
Analyst Review: https://www.researchdive.com/blog/what-are-the-reasons-for-the-exponential-increase-in-demand-for-automotive-semiconductors
