Title: Automotive Semiconductor Market: 3 Technology-Driven Trends Outline
1Automotive Semiconductor Market 3 Technology-
Driven Trends Outline
Semiconductors have facilitated several
innovations in automotive technology, including
DRAM NAND flash, sensors, vision-based graphics
processing units (GPUs), etc. With cars becoming
increasingly complex, there will be a steady
demand for automotive conductors. According to
Inkwood Research, the global automotive
semiconductor market is projected to register a
CAGR of 9.47 during the forecast period,
2022-2030. As per our analysis, Flash is the
largest revenue-generating memory type in the
automotive semiconductor market, set to record a
revenue share of 60.12 by 2030. Sustainability
policies, surging use of technologies,
developments in emerging markets, innovative
business models, rising automation, and
digitization have revolutionized industries and
economies globally. The automotive semiconductor
industry is no exception. In the last few years,
there have been many simultaneous disruptions in
the automotive industry. These include the
integration of different technologies into the
mass production of cars, improved LIDAR sensors,
matrix LED lights, and enhancements in EV
batteries, 3D mapping applications, and
augmented-reality technologies like heads-up
displays.
- In this regard, Inkwood Research lists the three
technology-driven trends shaping the automotive
semiconductor market - Connected Cars
- Semiconductors are the major constituent of
electronics in technologically-advanced
automobiles. They are used for critical functions
like power management, safety features, sensing,
and control display of the vehicle. They
process the captured data using on-vehicle
computing systems that
2- provide timely, accurate, and reliable control
systems for the car. These can be achieved
through ultrasonic sensors, radar, light
detection, and image cameras. - Online navigation and hands-free mobile service
are the current standards in new vehicles.
However, at present, automotive players are
moving toward the next way of innovation in
connected cars. The new offerings include
telematics services reliant on human-machine
interfaces, including eCall and voice assistance.
Such developments help alert drivers about
available parking spaces, collision avoidance,
and road closures. Connected cars and telematics
facilitate valuable insights into performance and
vehicle operations, safety services, remote
diagnostics, etc. - Accordingly, 5G networks are predicted to
supplement vehicle-to-vehicle and vehicle-to-
infrastructure connectivity. For instance,
Deutsche Telekoms SmartHome app allows users to
adjust their homes lighting and heating while on
the road. - Overall, connectivity strongly influences
vehicle-purchase decisions. As a result,
connectivity solutions, with their increasing
importance, are set to raise revenue for OEMs. - Vehicle Electrification
- The automobile industry is steadily integrating
electronics into cars to enhance infotainment,
system monitoring, safety, navigation, etc. Also,
the thriving automotive market offers lucrative
opportunities for automotive semiconductors to
supplement improved sensors, increased
connectivity, and battery performance in electric
vehicles. - Further, the automotive semiconductor content in
hybrid and electric cars is higher than in
conventional cars. Besides, electric vehicles
need hundreds of semiconductors than average
combustion-engine cars. In addition, such
vehicles need power metaloxidesemiconductor
field- effect transistors (MOSFETs),
application-specific integrated circuits,
microprocessors, and high- performance
microcontrollers. - Furthermore, semiconductors allow electric
vehicles to become safer and smarter. For
instance, they support touch-screen interactivity
with the driver and passenger and electric
vehicle (EV) batteries and components in the
power train. Semiconductor chips facilitate power
systems that apply updates to firmware. Also,
the need for semiconductors increases with the
growing digital advancements in electric
vehicles. - Moreover, semiconductor innovations can enable
longer and more efficient battery life. This is
because common electric batteries rely on
outdated technologies, limiting their
performance, further reducing the life span and
raising the costs of electric vehicles.
Accordingly, semiconductor chemistries like
Silicon Carbide (SiC) and Gallium Nitride (GaN)
enable operations for EV batteries at higher
voltages compared to traditional silicon wafers.
For instance, Tesla Model 3 uses Silicon Carbide
MOSFETs for its main inverter. - Advanced Driver Assistance Systems (ADAS)
- Advanced Driver Assistance Systems (ADAS) are
assistance systems based on electronic control
technology. They use sensors like cameras and
radar to perceive the surroundings and provide
the required information to the driver to take
action. Automotive processors integrated with
neural processing units (NPUs) for AI processors
are the brainpower of these systems, assessing
signals from onboard sensors to recognize
obstacles and lane markings. The continual demand
for driver assistance systems is raising the
demand for advanced semiconductors in automotive.
Chips with
3- built-in intelligence, known as
application-specific integrated circuits (ASICs),
are customized to a specific application. - Most of the automotive sectors increasing
importance as a revenue source for semiconductor
companies is attributed to the shift to ADAS.
This is because these systems should instantly
process data while responding to unexpected
changes like sudden stops in traffic. Such
capacities need multiple interconnections within
the high-performance chips and vehicle.
Consequently, they have a centralized electrical
and electronic (E/E) architecture and more
electronics content and sensors compared to
traditional vehicles. - According to our estimations, Advanced Driver
Assistance Systems (ADAS) are expected to garner
the largest revenue share of 28.69 by 2030. - Automotive Semiconductor Market What Lies Ahead?
- The internal-combustion engine (ICE) has been the
source of innovation and value in the automotive
industry for a century. However, the world is now
entering a new automotive age with cars
differentiated by functionalities facilitated by
electronics and semiconductors. This transition
places semiconductors at the heart of
automotive innovation, bringing together the
automotive, computing, and semiconductor
industries. - At the same time, this transition has significant
implications, with the aforementioned technology-
driven trends, namely connected cars, vehicle
electrification, and ADAS, set to raise the
semiconductor content in cars by ten-fold. Such
developmental trends, along with the continual
shift from direct subsidies to policy approaches
that depend on regulatory measures like fuel
economy standards and zero-emission vehicle
mandates, are evaluated to influence the global
automotive semiconductor market growth. - FAQs
- Which are the key companies in the global
automotive semiconductor market? - A STMicroelectronics NV, Infineon Technologies
AG, Renesas Electronics Corporation, NXP
Semiconductors NV, etc., are among the key
companies in the global automotive semiconductor
market. - Which country projects lucrative growth prospects
in the global automotive semiconductor market? - A India projects lucrative growth prospects in
the global automotive semiconductor market.