Automotive semiconductor market is expanding at an impressive pace. Despite disruptions faced during the ongoing pandemic, the global automotive semiconductor market is forecasted to rise at 7.0% CAGR between 2020 and 2030 by an ESOMAR-certified market research and consulting firm.
The leading market players are set to leverage the rising requirements of electric vehicles and the digital safety features like Advance Driver Assistance System (ADAS).
Based on historic research and current data, the market is forecast to showcase steady growth as a result of the rising demand for electric vehicles, automotive safety standards and modern automotive technologies across various countries.
While the market growth is accelerating quite steadily, the COVID-19 pandemic has impacted the manufacturing sectors. However, despite disruptions witnessed in production, market players are expected to focus on research initiatives, which will enable growth in the market in the coming years.
For instance, Broadcom has come up with their wide varieties of automotive solutions like vehicle connectivity and networking, optical isolation and sensing, wireless communications, LED lighting in the current year.
According to the report, the increasing production of vehicles and surging demand for safety feature have been resulting in the incorporation of the electrical systems in the automotive industry. The overall growth curve of the market tends to remain upward during the forecast period.
Some of the key takeaways from the report are highlighted below:
- The global automotive semiconductor market will grow steadily at a CAGR of 7.0% during the forecast period of next ten years (2020 to 2030)
- Passenger vehicles to continue leading the market among vehicle type-wise segments
- The market value of the automobile semiconductors for the applications such as body, safety, power train and others to experience an overall growth by 7.0% CAGR during the forecast period
- The automobile semiconductors for the micro-components (processors) to remain the dominant component of the global automobile semiconductor market. As per the research, the segment is about to gain an accelerated growth of 7.0 % CAGR during the forecast period (2020-2030)
- Region-wise Europe and South East Asia to exhibit the highest growth. North America and Latin America to hold the leading market position
“Digitally equipped automakers are adapting their mobile platforms for developing in-car entertainment and car platforms. Technology-based players have made collaborations with media-streaming devices and services manufacturers owing to aggressive capital investment and their core capabilities. Therefore, owing to digital connectivity such as vehicle-to-vehicle communication the automotive semiconductor market is expected to fuel up over the forecast period,” said an analyst.
Covid-19 Impact Analysis
Due to the COVID-19 pandemic there is global decline in the automotive demands as a result of the manufacturing units’ shutdowns, drop in GDP and other factors. The market growth is to decline further in the upcoming months.
The electrical and digital vehicles being the major source of the automotive semiconductors demands, the global automotive semiconductor market is about to decline by 5% in 2020. Despite of the complete shutting down of the production plants during the lock down, the overall year-to-year growth of the automotive semiconductor market is expected to be 5%-8% by 2021.
Who is Winning?
Study has thoroughly researched the various strategies which are being used by major businesses in the automotive semiconductor market. As the unlimited scope and opportunities subsides, the leading market players like Intel Corporation, NVIDIA Corporation, Samsung Semiconductor etc. is taking strategic actions in order to keep them in the top positions globally.