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Home Semiconductor News

Automotive Semiconductor Market Demand is Increasing Rapidly in Recent Years

Semiconductor For You by Semiconductor For You
May 20, 2017
in Semiconductor News
0

In recent past, Electronics system has emerges as a major area of innovation in automotive industry. Advancements in automotive electronics contributes more than 3/4th of the innovation made in the automotive industry. With the ongoing transit towards hybrid electric vehicles and increasing focus of vehicle safety and utility, the semiconductor content per vehicle has increased significantly and is expected to increase further. Increasing environmental awareness is the major factor fueling the demand for electric vehicles. Further, continuous struggle to make vehicle safer has increased adoption of advanced driver assistance systems (ADAS) such as lane departure warning systems, emergency braking, forward collision warning system, TPMS etc. Over the past decade contribution of electronics in total vehicle cost has increased from 18-20% to nearly 40-45% presently, the share is way higher for electric vehicles. Though, the total automotive sales growth rate has decreased from 14.3% in 2010 to 2.0% in 2015, premium and luxury passenger car segment has witnessed robust increase in demand, driving the growth for automotive semiconductors market. Further, mandating of vehicle safety systems such as TPMS, ABS, Electronic stability control etc. by regulatory bodies across major regions will further boost growth of automotive semiconductor market.

Automotive Semiconductor Market Demand
Automotive Semiconductor Market Demand

Automotive Semiconductor Market: Segmentation, Driver and Restraints, Region Wise Outlook, Key Players

By product type the automotive semiconductor market is segmented into: Analog IC, Discrete Semiconductors, Logic Semiconductors, Sensor Semiconductors, Optical Semiconductors, Others (Memory IC, Micro component IC, etc.); By Application, the automotive semiconductor market is segmented as follows: Safety, comfort & control, Chassis, Powertrain, Infotainment, Electronic system; By Vehicle type, the automotive semiconductor market is segmented as follows: Passenger Cars, Compact, Sub-compact, Sedan, SUV, Van, Luxury, Light Commercial Vehicles, Heavy Commercial Vehicles

Increasing global automobile production is a major factor empowering the growth of the global automotive semiconductor market. Global automotive production in 2014 improved 3% as compared to 2013 and increased another 2% in 2015 to 86.9 million units. Moreover, increasing electric vehicle sales with growing environmental awareness will lead to further electrification of drivetrain, thus a surge in demand for automotive semiconductors. The emerging concept of connected vehicles/vehicle intelligence will create significant growth opportunities in the automotive semiconductors market over coming years. Mature markets are expected to witness higher adoption rate for such systems however some of the emerging automotive markets are anticipated to witness low adoption due to high costs.

High cost of adoption is the major factor that can hamper growth of automotive semiconductors market, especially in countries of Asia and Africa. Further lower adoption of electric vehicles in these regions as compared to North America and Europe will significantly affect demand for automotive semiconductors.

By region the automotive semiconductors market is segmented into North America, Latin America, Asia Pacific, Europe and Middle East & Africa. Asia Pacific automotive industry production increased 2% in 2015 to 43.8 million units and was highest across the globe. Thus Asia pacific is anticipated to have dominating share in automotive semiconductors market over the forecast period. Europe is anticipated to be the next largest market after Asia Pacific, with significant automotive production in the region. North America though have a smaller market share but has high adoption rate per vehicles. Latin America automotive semiconductors market is expected to witness sluggish growth due to steeply declining automotive production in the region, the automotive production in the region declined 20% in 2015. Middle East market for automotive semiconductors is expected to remain stable over the forecast period, which is largely due to focus of consumers on high performance of vehicles.

Renesas Electronics Corporation, Infineon Technologies, STMicroelectronics, NXP Semiconductors N.V., Robert Bosch GmbH, Texas Instruments Inc., ON Semiconductor, Toshiba Corporation, Micron Technology, Inc.

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