WASHINGTON, Nov. 29, 2021 (GLOBE NEWSWIRE) -- As per analysts at Vantage Market Research, the global Semiconductor Chips for Automotive Market size is expected to reach USD 32.81 billion by 2028, exhibiting a CAGR of 7.5% during the forecast period. It further states that growing adoption of electric vehicles will have a tremendous impact on the global market. The report is titled as "Semiconductor Chips for Automotive Market, By Type (Analog ICs, Microcontrollers & Microprocessors, Memory, and Others), By Application (Telematics & Infotainment, Body Electronics, Safety, and Others), By Vehicle Type (Passenger Vehicles and Commercial Vehicles): Global Market Assessment, 2021-2028." The market size stood at USD 19.48 billion in 2020.
The COVID-19 outbreak has affected various industries worldwide. The Semiconductor Chips for Automotive market is no exception. Governments of various countries implemented strict lockdown measures and social distancing norms to curb the spread of the pandemic. Manufacturing facilities around the world were shut down during the initial stages of the pandemic. Market players faced numerous challenges as disruptions in supply chain were observed. This led to severe impact on the global economy impairing various industries including automotive and semiconductor.
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Demand for chips is more than that of the current supply. There has also been a subsequent increase in the chip prices. Numerous automobile manufacturers across the world have said that production has been affected due to the shortage in supply. Leading automotive manufacturers are forced to reduce production of vehicles by around 40% to 60%. For instance, India's automotive manufacturer Maruti Suzuki reduced production by 60% due to a lack of availability of chips. Ford, Stellantis, and GM reduced a combined total of 855 thousand units of vehicle production in the U.S. It is anticipated that this shortage will last till 2022 in some countries. However, things will improve in the second half of 2022 as more supplies will come online. The impact of COVID-19 on the market demand is considered while estimating the current and forecast market size and growth trends of the market for all the regions and countries based on the following data-points:
- Impact Assessment of COVID-19 Pandemic
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
- Quarterly Market Revenue Forecast, 2020 & 2021
- Key Strategies Undertaken by Companies to Tackle COVID-19
- Long Term Dynamics
- Short Term Dynamics
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The report on Semiconductor Chips for Automotive Market highlights:
- Competitive Landscape
- COVID Impact Analysis
- Historic Data, Estimates and Forecast
- Company Profiles
- Global and Regional Dynamics
- Assessment of the market
- Premium Insights
Market Overview:
Investments in Electric and Autonomous Vehicles to Drive the Market
Rising investments in manufacturing of electric as well as autonomous vehicles is expected to augment the demand for semiconductor chips in automotive sector. Semiconductor chips are in displays, sensing technologies, communication and safety systems, driver assistance, and various other aspects in vehicles. In June 2021, Alphabet's self-driving car company Waymo announced total investments of around USD 3.2 billion for its autonomous driving technology. Additionally, electric car sales reached a record 3 million in 2020, up 40% from 2019. With governments offering incentives on purchase of electric vehicles, it is expected that the demand for semiconductor chips in automotive market will increase over the forecast period.
Growing Demand for Commercial and Passenger Vehicles
Surging demand for commercial and passenger vehicles is propelling the market demand. Semiconductor chips enhance vehicle's infotainment system and security system. These chips ensure safety and comfort of the driver and passengers. For instance, Ford's SYNC technology enables the driver to make hands-free phone calls. The technology allows them to control infotainment system using their voice.
Trade War between U.S. and China to Impede the Market Growth
Various companies in the U.S. have strategic business relationships with several companies in China. For instance, Huawei, which supplied products to American chip manufacturers, has been blacklisted by the U.S. government. In September 2020, the U.S. government-imposed sanctions on one of China's largest chip manufacturer, Semiconductor Manufacturing International Corporation (SMIC). Owing to these export restrictions, SMIC had to reconfigure their supply chains. Meanwhile, companies buying their chips from SMIC had to switch to other chip manufacturers. However, it was observed that these chip makers were already at full capacity and were not able to fulfil the required demand. According to Semiconductor Industry Association, the U.S. accounts for about 12% of the global chip production whereas Asia accounts for around 75%, with China being a major contributor. The tense business relationship between the U.S. and China is expected to hamper the market growth over the coming years.
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Regional Analysis:
Europe will hold a substantial share over the forecast period
The market in Europe is expected to witness a growth rate during the forecast period. Europe is considered as the manufacturing hub in the automotive industry. This is attributable to the presence of companies such as BMW, Daimler, and Volkswagen, among others. Asia Pacific is one of the most lucrative regions for semiconductor chip manufacturers. This is attributable to the rising adoption of semiconductors chips in automotive sector of China, India, Japan, Taiwan, and South Korea.
List Of Prominent Players in the Semiconductor Chips for Automotive Market:
| Sr. No. | Companies | Location |
| 1. | Texas Instruments Inc. | Texas, United States |
| 2. | NXP Semiconductors | Eindhoven, Netherlands |
| 3. | STMicroelectronics N.V. | Geneva, Switzerland |
| 4. | Microchip Technology Inc. | Arizona, United States |
| 5. | Infineon Technologies AG | Neubiberg, Germany |
| 6. | NVIDIA CORPORATION | California, United States |
| 7. | Micron Technology, Inc. | Idaho, United States |
Recent Developments in the Industry:
1. June 2021: Texas Instruments Inc. announced the acquisition of Micron Technology's 300-mm semiconductor factory in Lehi, Utah, for USD 900 Million.
2. November 2021: NXP Semiconductors announced collaboration with Ford Motor Company to deliver enhanced driver experiences, convenience and services across its global fleet of vehicles, for Next-Generation Connected Cars.
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| Report Attribute | Details |
| Market Size 2020 Value | USD 19.48 Billion |
| Market Forecast For 2028 | USD 32.81 Billion |
| Expected CAGR Growth | CAGR 7.51% From 2021 – 2028 |
| Base Year | 2020 |
| Historic Years | 2016-2020 |
| Forecast Years | 2021-2028 |
| Market Size Provided In Terms Of | Revenue & Volume |
| Segments Covered | Type, Application, Vehicle Type |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Countries Covered | The U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, South East Asia, Brazil, Argentina, GCC Countries, and South Africa, among others |
| Companies Covered | Texas Instruments Inc., NXP Semiconductors, STMicroelectronics N.V., Microchip Technology Inc., Infineon Technologies AG, NVIDIA CORPORATION, Micron Technology, Inc., ON Semiconductor, Renesas Electronics, Maxim Integrated Products, Inc. |
| Report Coverage | Market growth drivers, restraints, opportunities, Porter's five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis |
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