The Global Automotive IC Market was worth US$ 60 billion in 2022 and is anticipated to reach a valuation of US$ 85 billion by 2028 and is predicted to register a CAGR of 6.00% during 2023-2028.
Market Overview:
The Integrated Circuit (IC) in automobiles is a crucial component that keeps the check on the engine's temperature, the vehicle's electronics, the vehicle's safety features, and the engine's overall management. Using a good-quality IC can help reduce the vehicle's maintenance cost. Also, the engine's reliability increases by many folds, which boosts the vehicle's performance. The IC also handles the vehicle's transmission controlling unit; along with that, the premium offerings like display and infotainment setup in a vehicle are also connected with the Integrated Circuit.
Market Drivers:
With technological advancements happening continuously in the automobile industry, the automotive IC market shares are growing enormously. This advancement leads to decreasing the prices of ICs. Thus, as the price reduces, the market share of the automotive IC market ultimately increases.
A lot of electrification has been done in the automobile industry, and modern cars are smart enough to drive using integrated computers. Along with semiconductors and other chips, the Integrated Circuits (IC) plays an important role in driving these cars.
The rising number of Electric Vehicles (EVs) in the market is also one of the reasons for the consistent growth of the automotive IC market. The ICs are one of those components which are important for working Electric vehicles.
Japanese and European automobile manufacturing companies like Toyota and BMW continuously work on improving components like IC.
Hence, technological advancements, modernization of cars, growth of Electric Vehicles (EV), and heavy investment from leading producers are the factors that drive the automotive IC market toward growth.
Market Restraints:
Integrated Circuits (IC) have a very complex design structure. It consists of microprocessors of varied shapes and sizes. The reliability of the material used in making the wires and transistors also has immense importance in the proper working of the IC and, thus, the working of the vehicle.
New IC design has to work out according to the performance expected from the vehicle. If the IC fails to deliver the necessary output in extreme conditions, it will adversely affect the market share of the vehicle.
Therefore, we can say that the complexity of designing the Integrated Circuit (IC) and the compatibility of the IC are the major limiting factors of the automotive IC market.
Market Opportunities:
Increasing Demand for Electric Vehicles (EVs) is the biggest opportunity for the growth of the automotive IC markets. The torque in the EVs is produced wholly due to IC. So, it can be said that electric vehicles cannot run without an Integrated Circuit.
Also, due to the strict government emission norms, using ICs with sensors for pollutants and refining the fumes emitted from the vehicles can be a good option.
As companies like TESLA are trying to make self-driving cars a new normal in the automobile industry, it requires the designing and developing special kinds of ICs. With time self-driving cars might replace regular used cars and become mainstream. This will be a great opportunity for the automotive IC market in the near future.
Market Recent Developments:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2028 |
|
CAGR |
6.00% |
|
Segments Covered |
By Type, Application, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
NXP Semiconductors NV, Renesas Electronics Corp., Samsung Electronics Co. Ltd., Siemens AG, STMicroelectronics NV, Texas Instruments Inc., Toshiba Corp., and Others. |
Market Segmentation:
The Power IC segment is dominating the shares of the market. Power IC supplies power for the vehicle to run. The power IC controls the engine and other electricals of the vehicle.
The sensor IC is responsible for controlling and signaling the vehicle's temperature, pressure, and acceleration. Various safety features of the vehicle are also controlled by the sensor IC.
The microcontroller type of IC is used to control the vehicle's display and other infotainment setup. These are like the minicomputers in the vehicle.
The Advance Driver Assistance System is the segment-leading automotive IC market. As safety features are gaining more and more importance nowadays, the implementation of ADAS is increasing.
In-vehicle networking connects all the electronic systems in the vehicle. The infotainment system and the vehicles' electronics are connected by in-vehicle networking.
The engine management segment controls emissions, fuel efficiency, and the engine's performance.
The transmission control system is the slowest-growing segment of the automotive IC market.
Market Regional Analysis:
The Global Automotive IC Market Report includes the segmentation of regions:
Asia Pacific region is ruling the automotive IC market. Countries like India, China, and Japan are among the biggest automobile market in the world. Due to the increasing demand for advanced vehicles, ICs always have huge demand in this region.
Followed by Asia Pacific, North America is gaining traction over the market shares. A growing number of research activities with the growing prominence for innovative technology is escalating the market growth rate in North America.
Europe is deemed to hit the highest CAGR in the coming years. The presence of major automobiles and the rising demand to launch luxury cars are promoting the shares of the market. In addition, the rising economy and increasing disposable income in urban areas are leveling up the market's growth rate in Europe.
The COVID-19 pandemic had a negative impact on the automotive integrated circuits market. The automobile industry experienced a drastic downturn during the COVID-19 era. This led to a halt in production. Thus, the demand for IC came down rapidly.
The maintenance of sold vehicles also decreased as vehicle usage touched almost zero for many people due to the global lockdown.
The pandemic disrupted the global supply chain, resulting in a lack of raw materials inventory for producers, and delivery of finished products to consumers was difficult.
In the post-pandemic era, the development of new technologies in the automotive industry, like self-driving cars, increased the demand for IC.
Therefore, we can say that the COVID-19 pandemic limited the automotive IC market growth, but in the post-pandemic period, the market gained its share back with an improved technological base.
Market Key Players:
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region