Pune, Jan. 17, 2024 (GLOBE NEWSWIRE) -- The Automotive Chip Market, as per the SNS Insider report, had a valuation of USD 38.39 billion in 2022. It is anticipated to attain USD 90.42 billion by 2030, exhibiting a compound annual growth rate of 11.3% during the forecast period from 2023 to 2030.
Market Overview
Automotive chips are specialized electronic components designed to control and manage various functions within a vehicle. These functions range from engine management and safety systems to infotainment and advanced driver-assistance systems (ADAS). Essentially, automotive chips serve as the brain of a vehicle, facilitating communication between different systems to ensure optimal functionality.
Market Analysis
With the global shift towards sustainable transportation, the demand for electric vehicles is soaring. Automotive chips play a crucial role in managing the complex systems within EVs, such as battery management, power distribution, and electric motor control. The pursuit of autonomous vehicles relies heavily on sophisticated sensor systems and AI algorithms. Automotive chips are essential for processing vast amounts of data in real-time, enabling features like lane-keeping assistance, adaptive cruise control, and collision avoidance. The modern consumer expects seamless connectivity features in their vehicles, from in-car entertainment systems to smart navigation. Automotive chips enable robust connectivity solutions, supporting features like Bluetooth, Wi-Fi, and 5G connectivity. Governments and consumers alike are prioritizing vehicle safety. Automotive chips are instrumental in the implementation of advanced safety features, including ABS (Anti-lock Braking System), airbag control, and emergency braking systems. All these factors to complement the overall growth of the automotive chip market.
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Automotive Chip Market Report Scope:
| Report Attributes | Details |
| Market Size in 2022 | USD 38.39 billion |
| Market Size by 2030 | USD 90.42 billion |
| CAGR | CAGR of 11.3% by 2023-2030 |
| Market Drivers |
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| Market Opportunity |
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| Major Market Players | Robert Bosch GmbH, NXP Semiconductors, Texas Instruments Incorporated, STMicroelectronics, Toshiba Corporation, ON Semiconductor, Infineon Technologies, Renesas Electronics, ROHM Semiconductor, Denso Corporation and other key players. |
Key Takeaway from Automotive Chip Market Study
- Logic ICs play a crucial role in the functionality of automotive electronic systems. These integrated circuits are responsible for processing and managing data within vehicles, enabling functions such as engine control, safety systems, and in-vehicle infotainment. With the rise of electric vehicles and advanced driver assistance systems, the demand for sophisticated and efficient logic ICs has surged.
- The chassis of a vehicle serves as its structural foundation, supporting various components and ensuring overall stability. In the context of automotive chips, the chassis segment includes electronic systems responsible for managing functions such as anti-lock braking systems (ABS), stability control, and suspension systems. These systems are paramount for enhancing both safety and performance.
Recent Developments
- Hyundai and Kia have recently announced an additional investment of $1.5 million in a promising automotive chip startup. This development underscores the critical role that semiconductor technology plays in the automotive industry, especially as vehicles become increasingly reliant on advanced electronics and connectivity features.
- Qualcomm has announced its intent to acquire Autotalks, an Israeli auto-chip maker renowned for its expertise in developing advanced communication solutions for the automotive industry. Qualcomm's decision to acquire Autotalks aligns with its vision to play a pivotal role in the development of connected and autonomous vehicles.
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Market Dynamics Analysis
The automotive chip market is currently experiencing a dynamic landscape driven by various factors that shape its trajectory. One of the primary drivers propelling the growth of this market is the increasing demand for advanced driver-assistance systems (ADAS) and electric vehicles. As automotive manufacturers strive to enhance vehicle safety and efficiency, there is a growing need for sophisticated semiconductor solutions to power these technologies. The integration of sensors, cameras, and connectivity features in modern vehicles requires high-performance chips to enable real-time data processing and communication. Additionally, the global push towards electric mobility has spurred innovation in power management and energy-efficient chips to optimize the performance of electric vehicles, further boosting the demand for automotive chips. However, this burgeoning market is not without its challenges and restraints. One significant challenge is the shortage of semiconductor components, which has become a bottleneck for the automotive industry. The supply chain disruptions, exacerbated by the COVID-19 pandemic, have led to a scarcity of chips, impacting production schedules and causing delays in vehicle manufacturing.
Key Regional Developments
In North America, the automotive chip market is witnessing robust growth propelled by a surge in electric vehicle (EV) adoption and the integration of advanced driver-assistance systems (ADAS). The United States and Canada are leading the way, with a growing emphasis on autonomous driving technologies and connectivity features. Europe remains a crucial hub for automotive chip manufacturing, driven by the presence of major automobile manufacturers and a strong focus on environmental sustainability. The European market is characterized by a rising demand for electric and hybrid vehicles, spurring innovations in energy-efficient chip designs. The Asia-Pacific region dominates the market, fueled by the rapid growth of the automotive industry in countries like China, Japan, and South Korea. China, in particular, stands out as a major player, not only as a massive consumer of automotive chips but also as a significant contributor to global chip production.
Impact of Recession
The recession has led to a delay in new vehicle purchases, creating pent-up demand. As economic conditions improve, consumers are likely to resume vehicle replacements, driving the demand for automotive chips. Despite the global economic challenges posed by the ongoing recession, the automotive chip market remains resilient. The critical role of automotive chips in key application areas, such as EVs and autonomous driving, positions them as indispensable components. This resilience mitigates the impact of the recession, as these sectors continue to drive demand.
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