The Automotive Chip Market Will Exceed $153 Billion by 2032

According to Adroit Market Research, the global automotive semiconductor industry was estimated at $59.9 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2032 to reach $153.11 billion.

Electronic components that are specifically designed and tuned for use in vehicles are known as automotive semiconductors. Many vehicle systems, such as those that handle safety, powertrain, infotainment, and comfort, rely heavily on the operation of these chips. Advanced driver assistance systems (ADAS), electric powertrains, and in-vehicle infotainment (IVI) systems in modern vehicles are just a few of the many complex features and functions they bring.

Microcontrollers, sensors, analog and mixed-signal ICs, power management ICs, and memory devices are some typical examples of automotive semiconductors. High reliability, robustness, and resistance to harsh environmental factors, including temperature fluctuations, humidity, and mechanical stress, are just some of the demanding specifications these components need to meet in the automotive industry.

In order to enhance international exchanges and cooperation and promote collaborative innovation in the industrial chain, on December 19, the "2023 (4th) China International Automotive Electronics Summit Forum", co-organized by AspenCore and Shanghai Transportation Electronics Industry Association, will be held at Sheraton Shanghai Pudong You You Hotel. The forum has a high-end international summit, as well as 4 theme forums, and an industry boutique exhibition and exchange area on the spot, which will study and judge the industrial trend from the perspective of the whole automotive electronics industry chain, combine the latest hot spots of current industrial development, and inspire new ideas and lead new development with cutting-edge insights. Click here to register.

The growing popularity of in-vehicle infotainment and connectivity features, the growing demand for electric vehicles (EVs), the increasing integration of automotive electronic systems, and advancements in autonomous driving technology have all contributed to the significant growth of the automotive semiconductor market. Although the COVID-19 pandemic has caused difficulties for early supply chains, the market has proven resilient and has continued to grow. This is mainly due to the rebound of the automotive industry and the rapid adoption of cutting-edge semiconductor technology. Power management semiconductors, such as power electronics for battery management systems and electric drivetrains, are in high demand due to the shift to electric and hybrid vehicles.

The demand for complex semiconductors for tasks such as sensing, processing, and actuation due to the creation and implementation of advanced driver assistance systems (ADAS) is further driving the expansion of the automotive semiconductor market. In addition, the development of smart and autonomous vehicles and the integration of connectivity solutions have increased the demand for automotive semiconductors, especially those related to advanced processing, in-vehicle networking, and vehicle-to-everything (V2X) communications.

Due to the shift to e-mobility, there is a growing demand for semiconductor solutions specifically designed for electric powertrains, battery management systems, and charging infrastructure. This change presents an opportunity for semiconductor companies to create cutting-edge control and power management systems suitable for use in electric and hybrid vehicles. Due to the increasing focus on safety and advancements in autonomous driving technology, semiconductor manufacturers now have the opportunity to provide high-performance sensors, processors, and communication devices for ADAS applications. This includes system components such as lane-keeping assist, adaptive cruise control, and automatic emergency braking.

Due to consumer demand for seamless connectivity and cutting-edge entertainment features, there are increasing opportunities for semiconductor companies to provide in-vehicle networking, multimedia processing, and wireless connectivity solutions. Previously mentioned are advancements in advanced processors, memory schemes, and communication modules that provide attributes such as sophisticated navigation, entertainment systems, and connectivity between vehicles and infrastructure.

With the development of V2X communication technology, more and more vehicles are able to communicate with the surrounding infrastructure and with each other, and semiconductor companies now have the opportunity to produce specialized communication modules and processors that enable safe and reliable data exchange, improve traffic efficiency and road safety.

The automotive semiconductor industry has changed dramatically at the beginning of the 21st century due to the rapid adoption of in-vehicle infotainment (IVI), advanced driver assistance systems (ADAS), and the increasing integration of electric and hybrid vehicle technologies. During this period, there has been a greater emphasis on creating semiconductor solutions to meet the unique needs of connected car technology, autonomous driving capabilities, and electric powertrains. The history of automotive semiconductors shows that as the automotive industry continues to change, modern vehicles have ever-increasing requirements for safety, performance, and connectivity, and so do technology.

With the continuous development of electric vehicles, network solutions, and autonomous driving, the history of automotive semiconductors is expected to take shape further. These advancements will encourage innovation and drive the integration of more complex semiconductor components in future automotive applications.

The Asia-Pacific region is a significant player in the automotive semiconductor industry. The market is expected to be driven by the increasing adoption of IoT and artificial intelligence in the automotive semiconductor industry in the region.