Driving the Future: How Automotive Semiconductors Are Powering the Next Generation of Vehicles

The Automotive Semiconductor Market is projected to grow from USD 42.9 billion in 2022 to USD 70.0 billion by 2027; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.1% from 2022 to 2027. Some factors, including increased demand for safety features, and induction of EVs and HEVs globally, are

making it complex for automotive semiconductor integrators to meet the demand from automotive OEM end users to meet their operational needs in various types of vehicles including passenger cars, LCVs, and HCVs. Government initiatives on EVs has led to the promoting development and sales of EVs and related charging infrastructure worldwide.

Discrete power device segment to account for the highest CAGR during the forecast period for the automotive semiconductor market

The market for electric and hybrid electric vehicles (HEVs) has seen significant growth in recent years, driving the rapid development of various automotive components. Among these, discrete power devices are expected to be the fastest-growing segment during the forecast period. This surge is largely attributed to the increasing electrification of critical automotive systems, particularly the powertrain, which demands high-performance power components like MOSFETs and IGBTs. As a result, discrete power devices are poised to capture the largest market share by 2027

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Market for passenger cars to grow at highest CAGR during the forecast period

The growth of the passenger car market can be largely attributed to the rising global demand, particularly in the Asia-Pacific (APAC) region. Countries such as China, India, Thailand, Indonesia, and Malaysia are experiencing a surge in passenger car sales, driven by the expanding middle-class population and increasing disposable income. Semiconductor electronics play a crucial role in enhancing vehicle performance, improving safety, and significantly reducing carbon emissions.

In emerging economies, rapid advancements in road infrastructure, the availability of affordable labor, increased consumer purchasing power, and the rising demand for safer vehicles have fueled the automotive market’s expansion. The growing purchasing power also drives the demand for vehicles equipped with advanced safety features and cutting-edge technology. In developed nations like the US, Germany, and the UK, the adoption of Advanced Driver Assistance Systems (ADAS) and autonomous vehicles further propels the growth of the automotive semiconductor market.

The market for EVs and HEVs to register the highest CAGR for the automotive semiconductor market

The automotive semiconductor market for electric/hybrid-powered vehicles is estimated to grow at the highest CAGR during the forecast period. Consumer’s growing adoption of greener and cleaner technology, as well as government goals and mandates, are expected to lead to a significant rise in the demand for more electric/hybrid fuel-based vehicles which, in turn, helps the semiconductor market for this segment to grow exponentially during the forecast period. Since EVs and HEVs demand more semiconductor content in the powertrain application due to electrification of the system, the average semiconductor content consumed by an EV/HEV is almost double that of an internal combustion engine (ICE) vehicle which includes both gasoline- and diesel-powered vehicles.

1 INTRODUCTION (Page No. — 31)

1.1 STUDY OBJECTIVES

1.2 MARKET DEFINITION AND SCOPE

1.2.1 INCLUSIONS AND EXCLUSIONS

1.3 STUDY SCOPE

FIGURE 1 AUTOMOTIVE SEMICONDUCTOR MARKET SEGMENTATION

1.3.1 YEARS CONSIDERED

1.4 CURRENCY CONSIDERED

TABLE 1 USD EXCHANGE RATES

1.5 STAKEHOLDERS

1.6 SUMMARY OF CHANGES

2 RESEARCH METHODOLOGY (Page No. — 36)

2.1 RESEARCH DATA

FIGURE 2 AUTOMOTIVE SEMICONDUCTOR MARKET: RESEARCH DESIGN

2.1.1 SECONDARY AND PRIMARY RESEARCH

2.1.1.1 Key industry insights

2.1.2 SECONDARY DATA

2.1.2.1 List of key secondary sources

2.1.2.2 Key data from secondary sources

2.1.3 PRIMARY DATA

2.1.3.1 Breakdown of primary interviews

2.1.3.2 Key data from primary sources

2.2 MARKET SIZE ESTIMATION

2.2.1 BOTTOM-UP APPROACH

2.2.1.1 Approach to arrive at market size using bottom-up analysis (demand side)

FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH

FIGURE 4 DEMAND-SIDE MARKET SIZE ESTIMATION

2.2.2 TOP-DOWN APPROACH

2.2.2.1 Approach to arrive at market size using top-down analysis (supply side)

FIGURE 5 MARKET SIZE ESTIMATION METHODOLOGY: TOP-DOWN APPROACH

FIGURE 6 SUPPLY-SIDE MARKET SIZE ESTIMATION

2.2.3 MARKET PROJECTIONS

2.3 MARKET BREAKDOWN AND DATA TRIANGULATION

FIGURE 7 DATA TRIANGULATION

2.4 RESEARCH ASSUMPTIONS AND LIMITATIONS

2.4.1 RESEARCH ASSUMPTIONS

2.4.2 RESEARCH LIMITATIONS

2.4.3 IMPACT OF RECESSION

2.4.4 RISK ASSESSMENT