One of the major factors driving the growth of global automotive semiconductor market is growing production of electric vehicle globally
Global demand for Automotive Semiconductor Market Size, in terms of revenue, was worth of USD 45.98 Billion in 2020 and is expected to reach USD 81.40 Billion in 2027, growing at a CAGR of 8.5 per cent from 2020 to 2027. Rising production of electric vehicles, high production volumes of automobiles and growing advanced safety and security needs are anticipated to drive the growth of global automotive semiconductor market.
“Asia-pacific is expected emerge as a fastest growing market over the forecast period owing to the increasing growth of automotive industry especially in emerging countries such as India, Japan and China. As per the NITI Aayog report; in India, about 7.35 million electric vehicles were extended in 2020 and expected to develop 26.52 million by 2030. Also, presence of leading semiconductors manufactures in this region is also fostering the market growth in this region,” read a report by Brandessence Market Research.
North America, on the other hand, is expected to dominate in the global automotive semiconductor market due to adoption of automated safety technologies, growing production of EVs and presence of key players in this region. According to National Highway Traffic Safety Administration; in the U.S. the continuing evolution of automotive technology is aiming to deliver greater safety benefits and automated driving systems (ADS)
One of the major factors driving the growth of global automotive semiconductor market is growing production of electric vehicle globally. According to The International Council on Clean Transportation (ICCT), global EV production surpassed 2 million per year in 2018 and sold over 80,000 EVs per year. In addition, elevated production of automobiles is also supplementing the market growth. For Instance; number of automobile users are rapidly increasing day by day which may lead to accelerate the demand for semiconductors for vehicles productions.
Furthermore, rising advanced safety and security needs are also augmenting the growth of global automotive semiconductor market in forecast period. For example; for self-driving cars, security began in semiconductors. The hundreds of composite chips within cars have to be protected against electrical faults that could damage the system following advanced features like accident avoidance and lane-change warnings.
Automotive applications are spawning the development of a host of sensor types and airbags for use in systems associated to rider safety and vehicle diagnostics or monitoring. Thus, the demand for advanced safety security needs is fostering the growth of the market during the forcaste peried.
However, high cost of vehicle along with continuous optimization of component size may hamper the global automotive semiconductor market growth. In spite of that, rising preference towards hybrid and electric vehicle along with adoption of advanced automotive semiconductors can offer more opportunities for the further growth of the global automotive semiconductor market.