Automotive Chip Market Size, Share, Trends, Growth, and Industry Analysis, By Component (Logic ICs, Analog ICs, Microcontrollers & Microprocessors, Memory), by Application (Chassis, Powertrain, Safety, Telematics & Infotainment, Body Electronics), by Vehicle Type (Passenger cars, Commercial vehicles), Regional Analysis and Forecast 2032.
Automotive Chip Market Trend
Global Automotive Chip Market size was USD 31.74 billion in 2023 and the market is projected to touch USD 78.04 billion by 2032, at a CAGR of 11.90% during the forecast period.
Automotive chips have been considered an important part of the modern car as they enable many electronic functions, including engine control, infotainment, safety features, and connectivity. With the sophistication of vehicles, demand for automotive chips has increased owing to trends like EVs, ADAS, and connectivity inside cars.
The market has grown rapidly over the past few years due to increased adoption of technology in the automotive sector. Production and delivery times have been affected by various challenges, including the recent global semiconductor shortage, hence affecting the manufacturing of automobiles. However, electric and autonomous vehicles are significant areas that offer opportunities for growth in the automotive chip market. It is expected that the demand for highly advanced chips would be higher with manufacturers investing highly in research and development regarding enhancing vehicle technology.
Automotive Chip Report Scope and Segmentation.
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Report Attribute |
Details |
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Estimated Market Value (2023) |
USD 31.74 Billion |
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Projected Market Value (2032) |
USD 78.04 Billion |
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Base Year |
2023 |
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Historical Year |
2018-2022 |
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Forecast Years |
2024 – 2032 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Component, By Application, By Vehicle Type, & Region. |
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Segments Covered |
By Component, By Application, By Vehicle Type, & By Region. |
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Forecast Units |
Value (USD Million or Billion), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2024 to 2032. |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others. |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Dynamic Insights
The increased incorporation of advanced technologies in vehicles, such as electric powertrains, autonomous driving capabilities, and enhanced infotainment systems, are among the significant drivers. High-performance chips are continuously in demand by automakers for improving vehicle performance, safety, and user experience. Investments in EVs, which need special chips for battery management and power control, are also being driven by increasing focus on electrification and sustainability.
The other challenges facing the market include semiconductor shortage. It has been so dire that production came to a complete halt and delayed the deliveries of the vehicles. The shortage showed the industry just how reliant it is on a few chip manufacturers, and so automobile companies are now seeking long-term agreements and diversifying their supply chain. Other regulatory changes and pushes toward more stringent safety and environmental standards affect market dynamics as manufacturers work to adapt designs for new regulations. However, with these challenges, the market is poised for growth as companies continue to invest in new, innovative technologies and manufacturing capabilities to keep pace with the resulting demand for automotive chips.
Drivers Insights
Rapid technological advancements in the automobile sector are driving the automotive chip market strongly. Modern vehicles, with increasing reliance on electronic systems, are offering functionality such as advanced driver-assistance systems, infotainment, and connectivity. For instance, adaptive cruise control, lane-keeping assist, and collision avoidance systems require semiconductor chips for processing large amounts of data in real time. This market is going to expand hugely as the automotive industry will continue its way toward more automated and connected vehicles.
The transition from traditional internal combustion engine vehicles to electric vehicles (EVs) is another critical driver for the automotive chip market. EVs require a variety of semiconductor components for battery management, powertrain control, and thermal management systems. These specialized chips are crucial for optimizing energy efficiency and ensuring the performance and safety of electric vehicles. As more consumers and manufacturers prioritize sustainability, the global push towards EV adoption is creating a robust demand for automotive chips, which is expected to drive innovation and production in this segment of the market.
Restraints Insights
The global semiconductor shortage has been in place for a while and is the most important restraint affecting the automotive chip market currently. This shortage has been caused by many factors, such as the pandemic due to COVID-19, supply chain disruption, and increased demand for electronic devices during lockdowns. Due to the unavailability of critical semiconductor components, the production delays and the reduced output experienced by many automakers have affected them negatively. This situation impacted the production schedules of vehicles while increasing costs and causing orders to backlog, thus introducing uncertainty into the market. Unless these supply chain problems are sorted out, then the demand in the market for automotive chips may be difficult to meet.
The production of automotive chips is highly complex and capital intensive and, therefore, can pose as a significant restraint for the market. The costs involved in research and development, advanced fabrication technologies, and stringent quality assurance processes are considerable. As demand for more complex chips increases, manufacturers may require even greater investment to improve their production capabilities. This financial burden can actually deter other smaller companies from entering the market or even increasing their operations, thereby affecting competition and innovation in the industry.
Opportunities Insights
The rapid growth of autonomous driving technologies will likely provide a great opportunity to the market for automotive chips. Since automakers and technology companies have started investing heavily in the development of self-driving vehicles, demand for advanced chips which support real-time data processing and machine learning would increase. The chips would be required for vehicle-to-everything communication, sensor fusion, and decision-making algorithms. With this tendency, manufacturers of semiconductors can develop unique solutions specifically satisfying the requirements of autonomous vehicles, being one step ahead in the rapidly emerging market.
Segment Analysis
The major constituents of the automotive chip market are logic integrated circuits, analog ICs, microcontrollers and microprocessors, and memory chips. Logic ICs form the heart of processing binary data as well as carrying out logical operations; thus, they are very crucial to various control systems in a vehicle. Analog ICs are indispensable for processing continuous signals as well as for power function management, which is key to applications like sensor management and audio systems. Microcontrollers and microprocessors are the brain of electronic systems that enable the execution of complex tasks and control of vehicle operations, while memory chips store all the essential data for these operations. This combination of components ensures that vehicles operate smoothly and efficiently, meeting the increasing demands for advanced features and functionalities.
The application segment of the automotive chip market includes chassis, powertrain, safety, telematics and infotainment, and body electronics. Chips used in the chassis are crucial for enhancing vehicle stability, handling, and performance, while powertrain applications focus on improving engine efficiency and power management. Safety applications utilize advanced chips to enable features like airbag deployment and collision avoidance systems, significantly enhancing passenger protection. Telematics and infotainment applications integrate connectivity and entertainment features, providing drivers and passengers with information and entertainment options. Finally, body electronics encompass various functionalities related to vehicle comfort and convenience, such as lighting control, climate management, and user interface systems, all of which are increasingly reliant on sophisticated semiconductor technology.
Automotive chips are also segmented into the types of vehicles. Passenger cars are the largest in this category, as consumers are demanding top-class safety features, infotainment systems, and efficient fuelling technologies. Chips inside these vehicles add a superior driving experience to the customers while adding up to the theme of electrification and automation in personal transport. On the contrary, commercial vehicles like trucks and buses need rugged application-specific chips for the ruggedness of their usage as well as for better performance. Telematics with advanced technologies is an important feature for fleet management; hence, such resources get utilized more efficiently in ensuring compliance to the laws governing the market. Rising demand for e-commerce and logistics is boosting the usage of chips in commercial vehicles and, in this process, is strengthening its presence within the automotive chip market.
Regional Analysis
North America is a market leader. Some of the major automotive companies have their presence, along with a strong focus on innovation and research in the area of semiconductor technology. Due to the growing electric vehicles and ADAS, there is a huge demand for automotive chips in this region. The positive government policies on green technologies and sustainable transport further enhance the growth of this market.
Strict emission regulations and sustainability are quickly changing the automotive chip market in Europe. European car manufacturers are increasingly investing in electric and hybrid vehicles that require specific chips for power management and vehicle control systems. Automotive technology is also one of the main hubs in the region, with various research and development initiatives aimed at improving vehicle safety and connectivity. While countries in the Asia-Pacific region are growing exponentially with automotive chips, including China, Japan, and South Korea, growth is boosted by vehicle production increases, consumers seeking smart and connected cars, and investments in semiconductor manufacturing. China has planned its adoption of electric vehicles, seeking self-sufficiency in semiconductor production.
Competitive Landscape
The main players are Intel, NXP Semiconductors, Texas Instruments, and STMicroelectronics, who heavily depend on their long experience with semiconductor technology and also rely on strong research and development capacity. These companies still develop new products to match the high orders for the advanced automotive features: electric vehicle management, technologies for autonomous driving, as well as sophisticated infotainment systems. Their ability to supply high-performance compliant chips sets them apart in this very competitive sector.
The landscape has new entrants and small firms. The majority of these smaller firms specialize in a niche space that exists within the automotive group. Companies such as Renesas Electronics and Infineon Technologies are currently growing their market with niche product spaces in power management and automotive safety systems due to their complexity. Further exacerbating the competitive situation is strategic partnerships and collaboration: auto manufacturers increasingly seek engagement with semiconductor suppliers in efforts to ensure chip supplies while pushing innovation. One instance of this would be a joint venture by the more traditional automotive firms with tech companies to build the platform for connected and autonomous vehicles. This has also been occasioned by a semiconductor shortage that continues unabated, compelling companies to revisit their supply chains and increase investments in manufacturing capabilities.
List of Key Players:
Recent Developments:
Global Automotive Chip Report Segmentation:
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ATTRIBUTE |
DETAILS |
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By Component |
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By Application |
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By Vehicle Type |
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By Geography |
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Customization Scope |
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Pricing |
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Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
