Global Automotive Electronic IC Market Overview
As per MRFR analysis, the Automotive Electronic IC Market Size was estimated at 37.02 (USD Billion) in 2022. The Automotive Electronic IC Market Industry is expected to grow from 40.31(USD Billion) in 2023 to 86.7 (USD Billion) by 2032. The Automotive Electronic IC Market CAGR (growth rate) is expected to be around 8.89% during the forecast period (2024 - 2032).
Key Automotive Electronic IC Market Trends Highlighted
Key market drivers for Automotive Electronic ICs include the rising demand for advanced driver assistance systems (ADAS), autonomous driving technologies, and connected vehicles. The integration of electronic systems in vehicles to enhance safety, comfort, and fuel efficiency is also driving market growth.
Opportunities to be explored in the Automotive Electronic IC Market lie in the development of energy-efficient and cost-effective solutions for autonomous driving, as well as the integration of artificial intelligence (AI) and machine learning algorithms to improve vehicle performance and safety. The increasing adoption of electric and hybrid vehicles presents further opportunities for the market to expand.
Recent trends in the Automotive Electronic IC Market indicate a shift towards smaller, more integrated, and energy-efficient designs. The demand for automotive-grade ICs with higher performance and reliability is also rising. The integration of sensors, actuators, and microcontrollers into a single chip is driving the market toward more comprehensive and intelligent systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Electronic IC Market Drivers
Growing Demand for Advanced Driver Assistance Systems (ADAS)
ADAS technologies, such as lane departure warnings, adaptive cruise control, and automated emergency braking, are becoming increasingly prevalent in new vehicles. These systems rely on electronic ICs to process sensor data and make real-time decisions, which is driving demand for automotive electronic ICs across the globe. The integration of ADAS features is expected to continue at a rapid pace in the coming years, further fueling the growth of the automotive electronic IC market.
ADAS systems are crucial for enhancing vehicle safety and reducing the risk of accidents. Moreover, they provide a more convenient and comfortable driving experience, which attracts consumers to vehicles equipped with these features. As a result, the demand for automotive electronic ICs used in ADAS systems is anticipated to remain strong in the Automotive Electronic IC Market Industry.
Increasing Electrification of Vehicles
The automotive industry is entering into a major shift toward the electrification process. People prefer electric vehicles and hybrid vehicles. Compared with traditional internal combustion engine vehicles, EVs and HEVs require more electronic components. Power modules, battery management systems, and electric motors all rely on electronic devices for their operation. In addition, the growing inclination toward electrification is expected to offer significant opportunities for automotive IC manufacturers in the automotive IC market industry.
Rising Adoption of In-Vehicle Infotainment Systems
In-Vehicle Infotainment systems are getting widely used in today’s cars and other vehicles. These systems help the user to navigate, connect with the outside world, and provide other entertainment facilities. Hence IVI systems are getting widely and increasingly used. Nowadays, IVI systems come with displays, audio systems, and connectivity modules, and all of these require electronic ICs to function properly. The Automotive Electronic IC Market is driven by the increasing demand for in-vehicle infotainment and navigation systems, mainly in developing countries where the automotive industry is at a growing stage.
Automotive Electronic IC Market Segment Insights:
Automotive Electronic IC Market Application Type Insights
The Automotive Electronic IC Market is segmented by Application Type into Body Electronics, Powertrain Electronics, Safety and Security Electronics, Connectivity Electronics, and Infotainment Electronics. The body Electronics segment is expected to be the largest market share of the segment in 2023 and is projected to grow at a CAGR of 8.5% in the coming years. The growth of this segment can be attributed to the rising demand for ADAS, BCMs, and other electronic components in the automotive industry across the world to enhance comfort and convenience for both drivers and passengers.The Powertrain Electronics segment is expected to grow at an increased rate over the forecast period owing to the increasing adoption of electric and hybrid vehicles worldwide. Powertrain electronics are used to control and optimize the performance of electric motors, batteries, and other powertrain components.
Safety and Security Electronics segment is projected to grow at a constant rate in the coming years. In the present era, there is an increasing number of measures being implemented to increase vehicle safety and security. This segment has a wide range of applications, including airbags, ABSs, and ESC systems, among others. These electronic components are very helpful in enhancing the safety and security of vehicles.
Connectivity Electronics segment is expected to grow at the fastest pace over the forecast period owing to the growing demand for connected vehicles. Being one of the major application types of vehicle ICs, these are integrated with technologies such as 5G, Wi-Fi, or Bluetooth, among others. These systems are capable of communicating with external devices or infrastructure. The Infotainment Electronics segment is growing at a moderate pace. The infotainment ICs include audio systems, displays, and navigation systems. This rise in demand for personalized and immersive in-vehicle experiences is one major factor in the growth of this segment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Electronic IC Market Vehicle Type Insights
The Automotive Electronic IC Market by Vehicle Type is divided into Passenger Cars, Commercial Vehicles, and Two-Wheelers. Due to the growing demand for advanced driver assistance systems and infotainment systems, Passenger Cars is the largest market share holder. Moreover, the rising sales and production of passenger cars, which is significantly occurring in emerging markets, is another factor contributing to the segment’s dominance. However, Commercial Vehicles, such as trucks, buses, and vans, will also demonstrate rapid growth.The demand for fleet management systems, telematics devices, and safety systems in this vehicle type is increasing. Finally, bikers in developing countries use Two-Wheelers, which also have a positive impact on the market growth. The Automotive Electronic Ic Market for Vehicle Type is anticipated to reach USD 24.5 billion by 2024; at a CAGR of 8.9% from 2024 to 2032.
Automotive Electronic IC Market Technology Insights
The Automotive Electronic IC Market is segmented into analog ICs, digital ICs, and mixed-signal ICs. Among these, the analog ICs segment is expected to account for the largest share of the market in 2023, with a valuation of USD 15.38 billion. This is primarily due to the increasing adoption of advanced driver assistance systems (ADAS) and infotainment systems in vehicles. The digital ICs segment is also expected to grow steadily, driven by the demand for high-performance computing and connectivity solutions in vehicles. The mixed-signal ICs segment is expected to witness moderate growth as it combines the advantages of both analog and digital ICs and finds applications in various automotive electronic systems.
Automotive Electronic IC Market Regional Insights
The regional segmentation of the Automotive Electronic IC Market provides insights into the performance of the market in different geographical regions. North America is expected to hold the largest market share, owing to the presence of major automotive manufacturers and a high demand for advanced electronic components. Europe is projected to be the second-largest market, driven by stringent emission regulations and a growing adoption of electric and hybrid vehicles. The APAC region is anticipated to witness significant growth, attributed to the increasing production of vehicles and rising disposable income. South America and MEA are expected to contribute a smaller share of the overall market but are expected to grow steadily due to government initiatives and increasing urbanization.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Electronic IC Market Key Players And Competitive Insights:
Major players in the Automotive Electronic IC Market are constantly innovating and developing new products to meet the changing needs of the market. The Automotive Electronic IC Market industry is highly competitive, with leading players such as Infineon Technologies, NXP Semiconductors, Renesas Electronics, STMicroelectronics, and Texas Instruments competing for market share. Automotive Electronic IC Market development is driven by the increasing demand for electronic systems in automobiles, such as advanced driver assistance systems (ADAS), infotainment systems, and telematics systems.
The Automotive Electronic IC Market Competitive Landscape is expected to witness significant growth in the coming years as the automotive industry continues to adopt new technologies and innovations.Infineon Technologies is a leading provider of automotive electronic components, including power semiconductors, sensors, and microcontrollers. The company has a strong presence in the automotive market and is a major supplier to automakers around the world. Infineon Technologies is committed to innovation and is constantly developing new products to meet the changing needs of the market. The company's focus on quality and reliability has made it a trusted partner for automakers and Tier 1 suppliers alike.
NXP Semiconductors is another leading provider of automotive electronic components. The company is a supplier of automotive semiconductors and has a strong presence in the market. NXP Semiconductors is committed to providing high-quality, reliable products to its customers and is a trusted partner for automakers and Tier 1 suppliers around the world. The company's focus on innovation and its strong product portfolio has made it a major player in the Automotive Electronic Ic Market.
Key Companies in the Automotive Electronic IC Market Include:
- Analog Devices, Inc.
- Infineon Technologies AG
- Wolfspeed, Inc.
- NXP Semiconductors N.V.
- STMicroelectronics N.V.
- Mitsubishi Electric Corporation
- ON Semiconductor
- Microchip Technology Incorporated
- Toshiba Corporation
- Qualcomm Technologies, Inc.
- Renesas Electronics Corporation
- Texas Instruments Incorporated
- ROHM Co., Ltd.
Automotive Electronic IC Market Industry Developments
The Automotive Electronic IC Market is projected to grow from USD 40.31 billion in 2023 to USD 86.7 billion by 2032, at a CAGR of 8.89%. This growth is attributed to the increasing demand for electronic components in vehicles, such as advanced driver-assistance systems (ADAS), infotainment systems, and powertrain control units.
Additionally, the growing adoption of electric vehicles is expected to drive the demand for automotive electronic ICs, as these vehicles require more electronic components than traditional gasoline-powered vehicles. Recent developments in the Automotive Electronic IC Market include the launch of new products and technologies. For example, in 2023, NXP Semiconductors introduced a new family of automotive microcontrollers designed for ADAS and autonomous driving applications.
Additionally, automotive OEMs are increasingly collaborating with semiconductor companies to develop customized electronic solutions for their vehicles. For example, in 2022, General Motors and Qualcomm announced a partnership to develop a new generation of digital cockpit systems.
Automotive Electronic IC Market Segmentation Insights
-
Automotive Electronic IC Market Application Type Outlook
- Body Electronics
- Powertrain Electronics
- Safety and Security Electronics
- Connectivity Electronics
- Infotainment Electronics
-
Automotive Electronic IC Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
-
Automotive Electronic IC Market Technology Outlook
- Analog ICs
- Digital ICs
- Mixed-Signal ICs
-
Automotive Electronic IC Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
37.02(USD Billion) |
| Market Size 2023 |
40.31(USD Billion) |
| Market Size 2032 |
86.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.89% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Analog Devices, Inc., Infineon Technologies AG, Wolfspeed, Inc., NXP Semiconductors N.V., STMicroelectronics N.V., Mitsubishi Electric Corporation, ON Semiconductor, Microchip Technology Incorporated, Toshiba Corporation, Qualcomm Technologies, Inc., Renesas Electronics Corporation, Texas Instruments Incorporated, ROHM Co., Ltd. |
| Segments Covered |
Application Type, Vehicle Type, Technology, Regional |
| Key Market Opportunities |
Increasing electric vehicle production, rising demand for advanced driver assistance systems ADAS growing popularity of connected cars, technological advancements in automotive electronics, expanding automotive manufacturing in emerging markets |
| Key Market Dynamics |
Electrification Automation Connectivity Safety Regulations Semiconductor Shortage |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive Electronic IC Market is expected to reach a valuation of approximately USD 40.31 billion in 2023.
The Automotive Electronic IC Market is projected to grow at a CAGR of 8.89% from 2024-2032.
Major growth drivers of the Automotive Electronic IC Market include the growing demand for advanced driver assistance systems (ADAS), increasing adoption of electric vehicles, and the rising popularity of connected cars.
Automotive Electronic ICs are used in various applications such as powertrain control, body electronics, safety systems, infotainment systems, and telematics.
Key competitors in the Automotive Electronic IC Market include Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corporation, STMicroelectronics N.V., and Texas Instruments Incorporated.
North America is anticipated to dominate the Automotive Electronic IC Market due to the increasing production of automobiles and the growing adoption of advanced technologies in the region.
The Automotive Electronic IC Market faces challenges such as the chip shortage, supply chain disruptions, and the need for continuous innovation to keep pace with rapidly evolving automotive technologies.
Opportunities for growth in the Automotive Electronic IC Market include the development of autonomous vehicles, the rising demand for electric vehicles, and the increasing adoption of AI and machine learning in automotive applications.
The Automotive Electronic IC Market can be segmented by product type, application, vehicle type, and region.
Key trends shaping the Automotive Electronic IC Market include the miniaturization of devices, the adoption of wide-bandgap semiconductors, and the integration of multiple functions into single chips.
