Automotive Chip Market Benefits from the Rise in Digitalization and Computerization
Surging Popularity of EVs to Bode Well with Automotive Chip Market
Automotive Chip Market Overview:
The automotive chip market can expect to jump from USD 50.74 Billion in 2023 to USD 128.08 billion by 2032, at a 12.27% rate from 2023 to 2032, says Market Research Future (MRFR).
Automotive chips are used to monitor and regulate many different aspects of a car. By using mathematics to explain various assignments, these chips greatly reduce the driver’s workload in the driving environment. Integrated circuits (ICs), commonly referred to as car chips, are divided into five categories: microcontrollers, DRAM, basic ICs, and blazing. Universally applicable logic ICs allow PC fields and data equipment with a variety of power supply voltages, capabilities, and capacities where higher performance is required.
According to projections, rising worries about protecting drivers and passengers from collisions are increasing demand for automotive chips. The security systems that these chips enhance include anti-theft, smart key, automotive vehicle location, and anti-hijack systems.
According to projections, the industry will benefit from growing customer interest in shared connection and mobility as well as surges in demand for fully autonomous vehicles and automatic parking. The increased preference for comfort and safety features, an increase in sales of ultra-luxury automobiles, and other technical advancements are further factors hastening the product’s popularity in the automotive industry. In addition, the industry is anticipated to be supported by growing sales of luxury and medium-priced cars.
The predicted development and commercialization of fully autonomous vehicles, such as driverless taxis, will generate opportunities for market revenue growth in the near future. Since fully automated vehicles require real-time data processing from numerous sensors placed all around the vehicle, high-powered automotive chips are anticipated to play a big part in the development of automobiles in the near future. Future smart automobiles are expected to frequently use automotive chips, also referred to as miniature supercomputers by companies like AQUATIA CORP. and NVIDIA CORPORATION.
On the other hand, the market is facing obstacles such as standardized manufacturing processes, high entry barriers, and cyber security risks. Auto OEMs have extensive and complicated testing and certification processes that may significantly lengthen the product-to-market cycle, and IC design, testing, and manufacturing processes require significant industry know-how and monetary investment. Additionally, auto chips may need to operate under extreme conditions (such as high temperature, power, etc.).
Analogue ICs, microcontrollers & microprocessors, and logic ICs are included in the product-based segmentation of the automotive chip market. As they manage numerous operations in the car’s electrical systems, microcontrollers, and microprocessors are the segment that brings in the most money.
Body electronics, telematics & infotainment, powertrain, safety system, and chassis are the application-based segments of the automotive chip market. Market dominance was held by the safety system category. The market is boosted by the increasing use of mandatory safety features like airbags and digital connectivity.
Depending on the kind of vehicle, the Automotive Chip Market is segmented into passenger cars and commercial vehicles. The market’s dominance of the passenger car can be attributed to the rising desire for cutting-edge technologies and linked services in common automobiles.
The propulsion-based segmentation of the automotive chip market includes ICE, BEVs, and HEVs. Due to the high-efficiency power modules that allow for the greatest driving range and quickest recharging in contemporary electric vehicles, the ICE sector has dominated the market.
In part to the fast urbanization, rising disposable incomes, large consumer base, and the eventual increase in the demand for automobiles, the automotive chip industry in the Asia Pacific will see quick growth from 2023 to 2032. It is anticipated that the Indian automotive chip market will note the fastest growth in the region, while the Chinese market will emerge as the leader in the following years.
Market Competitive Landscape:
The important vendors in the automotive chip industry are STMicroelectronics (Switzerland), Infineon Technologies (Germany), Toshiba Corporation (Japan, ON Semiconductor (US), Renesas Electronics (Japan), Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (US), ROHM Semiconductor (Japan), Denso Corporation (Japan) and more.
Major corporations are spending a lot of money on substantial R&D to support their product lines, which will assist the global market to grow significantly in the forthcoming years. To expand their worldwide footprints, industry players are also engaging in a variety of strategic activities, such as product launches, mergers and acquisitions, contractual agreements, collaboration, and greater investments. Competitors in the industry are providing reasonably priced but technologically cutting-edge items in an effort to grow as well as survive in a market environment that is becoming more competitive and volatile.