The rising adoption of an ADAS is expected to drive the growth of the market during the forecast period. The lack of standard protocols is a major challenge in the automotive sector
The automotive semiconductor market size is expected to increase by USD 18.27 billion from 2020 to 2025. However, the growth momentum is likely to decelerate at a CAGR of 6.81 per cent, according to the latest research report from Technavio.
“60 per cent of the market’s growth will originate from APAC for the automotive semiconductors market. China, Japan, and South Korea (Republic of Korea) are the key markets for automotive semiconductors in APAC. Market growth in this region will be faster than the growth of the market in Europe, MEA, and South America,” reads the research.
The rising adoption of an ADAS is expected to drive the growth of the market during the forecast period. The rapid adoption of software algorithms, processors, sensors, cameras, and advanced technologies in mapping obstacles has improved ADAS applications in vehicles. The governments of developing countries have imposed stringent safety norms on automotive manufacturers to develop vehicles equipped with ADAS features amid the growing concern regarding the security and safety of passengers.
The lack of standard protocols is a major challenge in the automotive sector. The burden of numerous regulations impacts new and existing products. Many governmental standards govern the production of automobiles by regulating engineers’ and designers’ creativity. The key role of these standards is to increase driver and on-road passenger safety and reduce the risk of thefts.
They also control the environmental impact of vehicles. Each country or region has its regulations. This implies that car companies should adapt their production standards to distribute their products in different markets worldwide. These changing protocols in each country cause financial losses to manufacturers, as they need to set up different assembly units.
The automotive semiconductor market share growth by the telematics and infotainment segment will be significant for revenue generation. Automotive semiconductors are one of the most vital and basic components of vehicle telematics and infotainment. The integration of real-time fleet monitoring systems, enhanced fleet efficiency, lesser fuel consumption, and the use of cloud computing technology in vehicles are contributing to the growth of the overall telematics and infotainment segment.