DUBLIN, March 22, 2023 /PRNewswire/ -- The "Global Automotive Semiconductor Market by Component (Processor, Analog IC, Discrete power device, Sensor), Vehicle Type (Passenger Car, LCV, HCV), Fuel Type (Gasoline, Diesel, EV/HEV), Application (Powertrain, Safety, Chassis) - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The automotive semiconductor market is expected to grow from USD 42.9 billion in 2022 and is projected to reach USD 70.0 billion by 2027; it is expected to grow at a CAGR of 10.10% during the forecast period.
The high requirement for fuel-efficient cars and the stringent government regulations to lower CO2 emissions led to an increasing number of semiconductors in both traditional vehicles and EVs/HEVs. Governments in many countries are in the process of regulating emissions from internal combustion engine (ICE)-based cars.
The adoption of electrified vehicles will lead to a significant rise in demand for new automotive ICs, microprocessors, and semiconductors. Hence, with the inclusion of advanced technologies and new features in vehicles has increased the scope of electrification.
As a result, original equipment manufacturers (OEMs) are installing a greater number of ICs, microprocessors, and semiconductors in high-end electric vehicles.
Market for discrete power device services to have the highest CAGR during the forecast period
There is a significant demand for power electronics in automotive applications as it is a huge sector in terms of the potential use of electrical energy and the diversity of power electronics to solve all the concerns in automotive applications. There is a concentrated effort on providing high-performance engine management systems in next-generation vehicles.
The automotive industry has been undergoing a remarkable change with respect to the implementation of power devices in electric vehicles. Power electronics is a core technology that controls the energy flow from the battery to the motor and vice versa, and enables this flow to be accomplished as efficiently as possible.
In addition to the main traction function, there are also numerous other areas where power electronics are key, for example, the battery charger and the provision of a 12V supply for legacy loads.
The market for passenger cars to have the highest CAGR during the forecast period
The tipping point in passenger EV adoption occurred in the second half of 2020, when EV sales and penetration accelerated in major markets despite the economic crisis caused by the COVID-19 pandemic. Europe spearheaded this development, where EV adoption reached ~8% due to policy mandates such as stricter emissions targets for OEMs and generous subsidies for consumers.
The transformation of passenger cars toward electrification is expected to disrupt the entire supply chain and create a significant shift in market size for automotive semiconductor components.
The market in China expected to have the largest growth globally throughout the forecast period
As per vehicle production statistics, China was the largest automotive market in the world in 2021. The country is expected to retain its dominance in the automotive semiconductor market during the forecast period. The rising demand for vehicles in the country, coupled with favorable regulations and economic labor costs, has boosted local vehicle production. An increasing number of OEMs are offering advanced automotive electronics in economic vehicle variants.
The surging demand for comfort and safety features in today's vehicles is expected to drive the automotive semiconductor market in China. The Government of China has placed strategic emphasis on plug-in hybrid EVs and pure EVs while promoting the adoption of energy-efficient hybrid vehicles.
Their sales are also increasing rapidly. The Chinese government plays a pivotal role in driving R&D and intends to make the country an R&D hub for vehicles and vehicle technologies. Also, China has incentives for electric cars, plug-in hybrids, and fuel-cell vehicles. The use of basic engine semiconductors to lower carbon emissions in passenger cars is also expected to contribute to the growth of the automotive semiconductor market.
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