Automotive Semiconductor Market Trends

Statistics for the 2023 & 2024 Automotive Semiconductor market trends, created by Mordor Intelligence™ Industry Reports. Automotive Semiconductor trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Automotive Semiconductor Industry

Heavy Commercial Vehicle Segment to Register Significant Growth

  • The heavy commercial vehicle market is expected to register a significant CAGR during the projected period. With the introduction of modern technology, such as accident prevention systems, ADAS, efficient driving and engine systems, and a focus on environmental sustainability and emission reduction, the demand for these large commercial vehicles will likely increase.
  • Top manufacturers' technological advancements in heavy commercial vehicles are set to surge worldwide. A prominent trend characterizing the market's success has concentrated on accident prevention systems, automatic emergency braking systems, driver assistance, and blind-spot monitoring. Installing automated emergency braking systems and forward-collision warnings on heavy-duty vehicles may save more than 40 percent of rear-end incidents involving large trucks, according to research led by the Insurance Institute for Highway Safety (IIHS).
  • According to the research, heavy-duty vehicles with front-crash prevention systems, such as automated emergency braking (AEB), had 12 percent fewer collisions, and forward-collision warning (FCW) had 22 percent fewer collisions, compared to vehicles without front-crash prevention systems. Consequently, the increasing demand for integrated ICs to make efficient automatic braking and driving systems significantly drives the automotive semiconductor market worldwide.
  • Under the new scrappage policy, governments in Asia-Pacific countries, like India, South Korea, and China, seek to push heavy-duty truck owners to acquire new heavy-duty trucks and other commercial vehicles, discouraging the use of old, polluting ones. The program would reduce pollution levels and promote the advancements of the heavy trucks segment in adopting integrated ICs, sensors, advanced microcontrollers, ADAS, and motor driver ICs, significantly influencing the market's growth.
  • Several heavy-duty truck manufacturers in Europe have been investing in integrating novel technology to meet the zero-emission objective from 2025 onwards to avoid paying high penalties for non-compliance with EU norms. The European Union has established carbon-neutrality goals and criteria for heavy-duty vehicles. These include a 15 percent decrease beginning in 2025 and increasing to 30 percent by 2030, with zero emissions by 2050.
  • According to OICA, in 2022, China produced the highest number of commercial vehicles in the Asia-Pacific region, with around 3.18 million units. In the same year, Japan produced approximately 1.27 million commercial vehicles.
Global Automotive Semiconductor Market: Number of Commercial Vehicles Produced in Asia, In Thousand, By Country, 2022

Asia-Pacific to be the Fastest Growing Region

  • The Asia-Pacific automotive semiconductor market is fueled by increased automotive manufacturing and continued partnerships between automotive OEMs and semiconductor manufacturers. Cost and fuel efficiency are no longer the most important factors to consider when buying an automobile; instead, the comfort and luxury offered by the vehicle are more important.
  • This may be attributed to the fact that global automobile manufacturers are seeing strong demand for luxury and semi-luxury vehicles, which is pressuring them to install more electronic components, pushing the Asia-Pacific automotive semiconductors market. As a result of this reason, the Asia-Pacific automotive semiconductor industry offers a potential market area.
  • The rapid expansion of the Asia-Pacific automotive semiconductor industry is expected to be fueled by the rising demand for electric vehicles. Automobile manufacturers must continue to innovate, create, and develop self-driving cars, which have already attracted a significant number of customers in key automotive manufacturing countries.
  • The growth trajectory of fully autonomous automobiles is expected to be heavily influenced by several factors, including technology advancements, consumer willingness to accept fully automated vehicles, pricing, and suppliers' and OEMs' capacity to address major concerns about vehicle safety.
  • According to the automobile industry, two-wheelers, three-wheelers, and tractors are in great demand across the country. In addition, India has a strong semiconductor R&D infrastructure, which may open up new potentials for the automotive semiconductor market in India in the future. Further, the government is taking various initiatives to boost the supply of semiconductor chips in the country. For instance, in September 2022, the Indian government announced to provide uniform fiscal support of 50 percent of the project cost for setting up semiconductor fabrication plants to boost semiconductor manufacturing in the country.
Global Automotive Semiconductor Market - Growth Rate by Region

Automotive Semiconductor Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)