The global automotive chip market was valued at $52. $53 billion in 2021 and is expected to be worth $92. 21 billion by 2026. Automotive chips are a unique class of electronic components with the ability to conduct electricity under specific conditions.
New York, June 30, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Automotive Chip Market: Analysis By Vehicle Type, By Device Type, By Application, Per Region, Size and Trends with Impact of COVID -19 and forecast to 2026” – https://www.reportlinker.com/p06289955/?utm_source=GNW
Car chips are used in vehicles to ensure that the relevant part functions properly under all circumstances.
Market revenues may increase in the coming years due to the expected development and commercialization of fully automated vehicles, such as driverless taxis. Powerful automotive chips are expected to be widely used in cars in the near future, as fully autonomous vehicles require real-time data processing from numerous sensors mounted around the vehicle. The Automotive Chip market is projected to grow at a CAGR of 12.07% over the analyzed period of 2022-2026.
Market Segmentation Analysis:
By Vehicle Type: The report identifies two segments based on vehicle type: passenger vehicle and commercial vehicle. By vehicle type, the passenger car segment accounted for approximately 62% of the automotive chip market in 2021 and experienced the fastest growth over the forecast period. This is because several countries in Asia-Pacific, North America and Europe have adopted regulations requiring the integration of different types of safety measures in the passenger car segment.
By Device Type: The report identifies six segments by device type: MCU, Analog IC, Sensor, Logic IC, Discrete, and Memory. Among the device type, the MCU segment had the maximum share in 2021, accounting for about 30% of the automotive chip market. Microcontrollers responsible for automating vehicle tasks are now in high demand due to the advancement in automation. MCUs are used in cars to perform automatic tasks such as distributing electricity to various vehicle components, keeping the exhaust system clean and reducing fuel consumption. In addition, as vehicles become electrified, there is a growing demand for new, specialized MCUs tailored to the requirements of electric vehicles (EVs).
By Application: The report provides the breakdown of the Automotive Chips market into ten segments by application: ADAS, body electronics, infotainment, EV/HEV, chassis, safety, ICE powertrain, instrument cluster, aftermarket and automotive HPC. The automotive HPC segment is expected to grow at a significant pace over the forecast period. Automotive high-performance computing (HPC) implements a centralized computing architecture in which a single HPC module manages numerous functional domains, including body electronics, chassis electronics, and safety electronics. The use of HPC modules enables vehicle manufacturers to consolidate functionality previously performed by many ECUs with embedded software into a software-defined electrical and electronic architecture that performs a variety of service-oriented applications.
By Region: In the report, the global automotive chip market is divided into four regions: Asia-Pacific, North America, Europe, and ROW. Asia-Pacific accounted for the largest 38% share of the global automotive chip market in 2021. Increased vehicle production and ongoing collaborations between automotive OEMs and semiconductor manufacturers are driving the Asia-Pacific automotive chip market. The comfort and luxury that a car offers now outweighs price and fuel economy as the most crucial aspects to consider when buying a car. This can be explained by the fact that the demand for premium and semi-luxury cars is increasing worldwide, forcing automakers to install more electronic components and boosting the auto chip market in Asia-Pacific.
Factors of growth: The market has grown in recent years due to factors such as higher disposable income, increasing demand for electric vehicles, increasing number of road fatalities, increasing semiconductor content in vehicles, improved ADAS functionalities, increasing demand for – Vehicle Infotainment System (IVI ) and government safety standards. The expansion of car chips seems to be fueled by the widespread demand for electric vehicles. The transition to electric mobility is well underway and presents the automotive industry with new hurdles. A phasing out of the combustion engine seems almost inevitable given the increasingly ambitious climate targets and is an established policy in more and more countries. In addition, most advances in vehicle development are powered by semiconductors, which also act as a catalyst for growth and consumer demand. Demand for automotive semiconductors will steadily increase as automobiles become more complex, which is a key long-term growth engine for the automotive chip market.
Challenges: However, some challenges hinder the growth of the market, such as cybersecurity threats and high barriers to entry and standardized manufacturing process. The automotive chip market has high barriers to entry, as automotive chips may need to operate under extreme conditions (such as high temperatures, power, etc.), automotive OEMs have lengthy and complex testing and certification processes, which extend the product-to-market cycle, and the IC -design, test and production processes require extensive industrial know-how and financial investments.
Trends: The market is expected to grow at a rapid pace over the forecast period, reflecting several latest trends such as rising demand for connected cars, autonomous driving, 5G upgrades from vehicle to cloud connectivity, and the emergence of a lazy economy. The future of autonomous vehicles will soon become a reality as technology evolves. Since it can save deadly traffic accidents, several car manufacturers are working towards reaching level 5 of automation. Companies in the automotive chip business are taking this opportunity to increase vehicle safety, as autonomous vehicles are gaining popularity thanks to car brands such as Tesla. Leading automakers are focusing on integrating autonomous technologies into cars to enhance safety and elegance. The use of car chips can be beneficial for all these applications. As a result, a sizable market for automotive chips is enabled by the increasing adoption of these semi-autonomous functionalities.
Impact analysis of COVID-19 and the way forward:
The COVID-19 pandemic has wreaked havoc on the global automotive chip market. The automotive chip market also collapsed under this situation and the chip shortage problem worsened. Factors that led to a decline in car chip production in 2020 include a lack of raw materials, a skilled workforce, and the closure of many car factories.
Throughout 2020, chip shortages could continue to negatively impact global motor vehicle production. However, the post-COVID environment appears to be favorable for the automotive chip market. It is worth noting that the tight supply of chips is improving. The improved situation led to better-than-expected production of light vehicles even in the second half of 2021.
The global automotive chip market is moderately fragmented. Market players have implemented sustainable growth techniques in the market. In order to strengthen their position in the market, some of the leading competitors follow different growth methods such as mergers, acquisitions, partnerships and agreements. For example, STMicroelectronics announced an anchor partnership with startup Autobahn.
Major players in the global Automotive Chip market are:
NXP Semiconductor NV
Infineon Technologies AG
Renesas Electronics Corporation
Robert Bosch GmbH
Qualcomm Incorporated Inc.
Microchip Technology Inc.
ON Semiconductor Corporation
Analog Devices, Inc. (Maximum Integrated)
Major players invest in equipment R&D to meet international standards. New product launches, collaborations with governments and expansion in emerging countries are among the strategic activities the companies are pursuing to increase their market positions. For example, NVIDIA Corporation is focused on introducing high network capacity and large processing power chips for fully autonomous vehicles. Infineon Technologies AG opened the brand new state-of-the-art chip facility in September 2021 at the Villach site in Austria. To enable numerous connected functions in a variety of automotive applications, the factory would manufacture power electronics on 300 millimeter thin wafers. In July 2021, ON Semiconductor announced a new AutoX Gen5 self-driving platform for its LiDAR and image detection technologies. Using 28 2D image sensors and 4 3D LiDAR sensors, this Gen 5 autonomous technology enables a completely driverless RoboTaxi for transportation. of people and products.
Scope of the report:
The report entitled “Global Automotive Chip Market: Analysis By Vehicle Type, By Device Type, By Application, Per Region, Size and Trends with Impact of COVID-19 and Forecast up to 2026”, includes:
— An in-depth analysis of the global Automotive Chips market by value, by vehicle type, by device type, by application, by region, etc.
— The Regional Analysis Of The Automotive Chip Market, Including The Following Regions:
Asia-Pacific (China, Japan, India, South Korea and rest of Asia-Pacific)
North America (US and Canada)
Europe (Germany, UK, France, Spain and rest of Europe)
— Comprehensive information on emerging markets. This report analyzes the market for different segments in different geographic areas.
— Provides analysis of the impact of COVID-19 on the global automotive chip market.
— Evaluates the key opportunities in the market and outlines the factors that are and will be the growth of the industry. The growth of the overall automotive chips market is also forecast for the period 2022-2026, taking into account the past growth patterns, the growth engines and current and future trends.
— Evaluation of the potential role of car chips to improve market status.
— Identification of new technological developments, R&D activities and product launches taking place in the automotive chip market.
— In-depth profiling of key players, including assessment of the company outline, market strategies, regional and business segments of the leading market players.
— The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.
— The in-depth analysis provides insight into the market and highlights the growth rate and opportunities presented in the company.
Read the full report: https://www.reportlinker.com/p06289955/?utm_source=GNW
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