Rise in Demand for Safety Features in Automobiles to Provide Growth Opportunities for Automotive Semiconductor Market During 2018–2027
According to our latest market study on “Automotive Semiconductor Market Forecast to 2027 – Global Analysis – by Component, Application, Vehicle Type, and Geography,” the market is expected to grow from US$ 34.89 billion in 2017 to reach US$ 76.93 billion by 2027; it is anticipated to grow at a CAGR of 8.3% from 2018 to 2027.
Due to an increase in the number of road accidents globally, the demand for safety features such as parking assistance, collision avoidance systems, lane departure warnings, traction control, electronic stability control, tyre pressure monitors, airbags, and telematics is on the rise. Automotive semiconductors are a key component of a variety of advanced driver assistance systems (ADAS) technologies, allowing ADAS systems to identify and classify items in the vehicle’s path and then advise the driver about the surrounding environment and road conditions. Moreover, based on calculations done using semiconductors and other components, these systems can autonomously decelerate or stop the car based on road conditions. Road accidents are a key cause of death worldwide, and death rates from traffic accidents have risen dramatically in recent years. According to a report issued by the World Health Organization in 2021, about 1.3 million people die each year in traffic accidents. Furthermore, road traffic injuries that result in death are more common among youths. These reasons are causing a surge in demand for vehicle safety measures. Automobile companies are developing and deploying safety features to suit the needs of their customers. HELLA (a business that makes cutting-edge lighting and electronics components) revealed the production schedule for the latest 77 GHz radar technology in February 2020. The upcoming vehicles will now be more differentiated by electronics and software-defined features, and the optimum integration of software and hardware across the whole car-to-cloud system.
The global automotive semiconductor market is segmented on the basis of component, vehicle type, application, and region. Based on component, the global market is segmented into optical, sensors & actuators, memory, microcontrollers, analog ics, and logic and discrete power devices. Based on vehicle type, the global automotive semiconductor market is segmented into passenger car, light commercial vehicle, and heavy commercial vehicle. Based on application, the global automotive semiconductor market has been segmented into advanced driver assistance systems, body electronics, infotainment, powertrain, and safety systems.
Rapid advancements in the automotive sector, rising demand for safety features in automobiles, and the introduction of innovative technologies for advanced user interface (UI) are factors that fuel the market’s global expansion. However, operational failures in extreme climatic circumstances, as well as expensive beginning costs and a complex structure, function as a barrier to the market’s global growth. Nevertheless, factors such as rising demand for electric and hybrid vehicles, and increased technological improvement and innovation in ADAS would provide sufficient potential for market expansion during the projection period. The automotive sector would create a strong demand for semiconductor content in vehicles as more regulations and greater efficiency and features increase the need for sophisticated electronics. The development of intelligent mobility will create new technologies and performance challenges for semiconductor manufacturers. They will need to ensure high levels of reliability and provide guaranteed levels of service for wireless connections.
NVIDIA Corporation, Intel Corporation, NXP Semiconductors N.V., Infineon Technologies AG, Rohm Semiconductor, Texas Instruments Inc., Renesas Electronics Corporation, Robert Bosch GmbH, ON Semiconductor Corporation, and STMicroelectronics N.V. are among the major companies operating in the automotive semiconductor market.
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