Automotive Integrated Circuit Ics Market Overview
As per MRFR analysis, the Automotive Integrated Circuit Ics Market Size was estimated at 41.5 (USD Billion) in 2022. The Automotive Integrated Circuit Ics Market Industry is expected to grow from 45.44 (USD Billion) in 2023 to 102.81 (USD Billion) by 2032. The Automotive Integrated Circuit Ics Market CAGR (growth rate) is expected to be around 9.49% during the forecast period (2024 - 2032).
Key Automotive Integrated Circuit Ics Market Trends Highlighted
The automotive integrated circuit (IC) market is poised for significant growth in the coming years, driven by several key factors. The increasing adoption of autonomous and semi-autonomous vehicles requires the integration of advanced sensors, actuators, and electronic control units, which rely heavily on ICs. Moreover, the growing popularity of electric vehicles is driving the demand for power management and battery monitoring ICs. Additionally, the need for enhanced connectivity and infotainment systems is creating opportunities for ICs that support advanced communication protocols and multimedia applications.To capitalize on these opportunities, market participants are focusing on developing ICs that are smaller, more energy-efficient, and more reliable.
Continuous advancements in semiconductor technology are enabling the integration of more functionality into a single chip, leading to cost savings and improved performance. Additionally, the growing adoption of artificial intelligence and machine learning in automotive applications is driving the demand for ICs that can process large amounts of data in real time.Recent trends in the automotive IC market include the increasing adoption of wide bandgap semiconductor materials, such as silicon carbide and gallium nitride, which offer superior power handling capabilities. Additionally, there is a growing emphasis on wireless connectivity and data security, leading to the integration of specialized ICs for Bluetooth, Wi-Fi, and cellular communications. Furthermore, the increasing demand for personalized automotive experiences is driving the development of ICs that can support voice recognition, gesture control, and other advanced human-machine interfaces.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Integrated Circuit Ics Market Drivers
Rising Demand for Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles
The primary driving factor of growth in the Automotive Integrated Circuit Ics Market Industry is the increased adoption of ADAS and autonomous vehicles. Each of the ADAS requires a significant number of ICS to work, such as lane departure warning, adaptive cruise control, and automatic emergency braking. The more sophisticated the level of autonomy in a system, the more the demand for highly sophisticated and Ics with more power. The second driving factor is the increased adoption of electric vehicles.This is due to electric vehicles requiring a significantly higher number of circuits to manage the power distribution of power and, which includes charging for their batteries.
Increasing Complexity of Automotive Electronics
One of the emerging problems in the automotive industry is the rapid increase in the complexity of electronic systems, which is driven by the use of new technologies, including infotainment systems, connected car features, and advanced driver assistance systems. Such systems require more circuits to operate, and in practice, it means that there is a growing demand for ICs. This demand is driven by various other factors as well, such as the need for more integrated solutions allowing to pack more functionality into a smaller and more efficient device.Another development contributing to the growing demand for automotive ICs is electric vehicles, which require specialized circuits to manage power distribution and battery charging.
Growing Adoption of Electric Vehicles
Electric vehicles are especially widespread today, mainly due to the current worries about the global climate and the everlasting tendency of gasoline and petrol prices to rise. Automobile integrated circuits in the automotive industry are increasing today because electric vehicles need such specific circuits. Power distribution and battery charge management are also among the direct results of the electric car's tendency.
Automotive Integrated Circuit Ics Market Segment Insights
Automotive Integrated Circuit Ics Market Vehicle Type Insights
Vehicle Type Segment Insights and Overview There is a significant difference in the global Automotive Integrated Circuit market for all three vehicle types. They are passenger cars, commercial vehicles, and two wheelers. The passenger cars’ share of the segment was the highest in 2023 and will continue to hold this position. This is caused by a fast increase in the number of passenger cars sold, especially in the markets of emerging economies. The commercial vehicles’ share will increase as the segment will experience the most significant growth throughout the forecast period.The market for these vehicles is rapidly increasing as the demand grows in the logistics, transportation, and construction segments.
The increase in popularity of two wheelers in urban areas and developing countries will result in this segment’s share growing gradually. It should be noted that although this share is the lowest, the number of two wheelers sold worldwide is still considerable. The highest revenue is going to be brought by the passengers cars segment. It will be followed by commercial vehicles and two wheelers, which will also be the sequence for the subsequent years.This is because there are two times more passenger cars sold compared to the total of commercial vehicles and two wheelers. At the same time, the share of commercial vehicles indicates that a considerable share of the market revenue comes from this sector. Finally, although the lowest, the share of two wheelers is still significant and will bring a lot of revenue as their popularity in urban areas and developing countries is growing. Overall, the Vehicle Type segment is shaping the favorable conditions for the Automotive Integrated Circuit Market growth as the demand for the three vehicle types is likely to grow over time.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Integrated Circuit Ics Market IC Technology Insights
The IC Technology segment significantly drives the development of the Automotive Integrated Circuit Ics Market. The materials, such as Silicon Carbide and Gallium Nitride appear to have high potential and are gaining popularity for their power electronics integrated circuits. These materials boast higher power efficiency and density. The Automotive Integrated Circuit Ics Market revenue for SiC and GaN is projected to increase and reach USD 2.4 billion by 2024.
The Silicon-on-Insulator technology is beneficial for its improved technology and reduced leakage currents, which make it perfect for ADAS and autonomous driving.The Complementary Metal-Oxide-Semiconductor technology is widely used because of its low cost and can be applied to any type of ICs used in the automotive field from in-vehicle systems to powertrain control units. Automotive Integrated Circuit Ics Market statistics show the growth of the production of CMOS-based ICs since they are highly scalable and universal in terms of technology integration.
Automotive Integrated Circuit Ics Market Application Insights
The Automotive Integrated Circuit Ics Market by Application is segmented into Power Management, Infotainment, Safety and Security, and Telematics. The Power Management segment is expected to hold the largest market share in 2024 due to the increasing demand for fuel-efficient vehicles. The Infotainment segment is expected to grow at the highest CAGR during the forecast period due to the rising popularity of connected cars. The Safety and Security segment is expected to witness significant growth due to the increasing need for advanced safety features in vehicles.The Telematics segment is expected to hold a significant market share due to the growing demand for vehicle tracking and fleet management systems.
Automotive Integrated Circuit Ics Market Level of Automation Insights
The Level of Automation segment plays a crucial role in the Automotive Integrated Circuit Ics Market, influencing market growth and driving innovation. As of 2023, Level 1 systems held a significant market share, enabling basic driver assistance features such as lane departure warning and automatic emergency braking. By 2024, Level 2 systems are projected to witness a surge in adoption, offering more advanced capabilities like adaptive cruise control and lane keeping assist.
Level 3 systems, expected to emerge in 2025, will bring conditional automation, allowing drivers to delegate certain driving tasks under specific conditions.The market for Level 4 systems, expected in 2028, will witness high growth, providing high levels of automation and enabling hands-free driving in most situations. Level 5 systems, still in the research and development phase, are expected to achieve full automation, eliminating the need for human intervention in driving. The Automotive Integrated Circuit Ics Market segmentation provides insights into the evolving landscape of autonomous driving technologies, shaping market growth and innovation.
Automotive Integrated Circuit Ics Market Chip Design Insights
The Automotive Integrated Circuit Ics Market is segmented by Chip Design into Full-Custom Design, Semi-Custom Design, and Application-Specific Integrated Circuit (ASIC) Design. The Full-Custom Design segment held the largest share of the market in 2023 and is projected to continue to grow at a CAGR of 9.6% from 2023 to 2032. The Semi-Custom Design segment is expected to grow at a CAGR of 9.3% during the forecast period, while the ASIC Design segment is anticipated to grow at a CAGR of 9.1%. The growth of the Automotive Integrated Circuit Ics Market is attributed to the increasing demand for automotive electronics, such as advanced driver assistance systems (ADAS), infotainment systems, and powertrain control modules.The rising adoption of electric vehicles and autonomous vehicles is also driving the growth of the market.
Automotive Integrated Circuit Ics Market Regional Insights
The Automotive Integrated Circuit Ics Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth in the APAC region can be attributed to the increasing demand for automobiles in emerging economies such as China and India. Europe is expected to be the second-largest market for Automotive Integrated Circuit Ics, followed by North America. South America and MEA are expected to witness significant growth in the coming years due to the rising demand for automobiles in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Integrated Circuit Ics Market Key Players And Competitive Insights
Major players in the Automotive Integrated Circuit Ics Market industry are investing heavily in research and development to gain a competitive edge. Leading Automotive Integrated Circuit Ics Market players are focusing on developing innovative products and technologies to meet the evolving needs of the Automotive Integrated Circuit Ics Market. The Automotive Integrated Circuit Ics Market development is being driven by the increasing demand for electronic components in vehicles. The growing adoption of advanced driver assistance systems (ADAS) and autonomous driving technologies is also boosting the demand for Automotive Integrated Circuit Ics.
The Automotive Integrated Circuit Ics Market Competitive Landscape is expected to remain highly competitive in the coming years, with major players vying for market share.Renesas Electronics Corporation, a leading company in the Automotive Integrated Circuit Ics Market, is a global supplier of semiconductor solutions for automotive, industrial, home appliance, and other applications. The company has a wide range of Automotive Integrated Circuit Ics products, including microcontrollers, power management ICs, and analog ICs. Renesas Electronics Corporation is known for its high-quality products and its strong customer support.
The company has a global network of sales and support offices, and it is committed to providing its customers with the best possible service.Texas Instruments Incorporated, a competitor company in the Automotive Integrated Circuit Ics Market, is a global semiconductor company with a wide range of products, including analog ICs, digital signal processors (DSPs), and microcontrollers. The company has a strong presence in the automotive market, and it offers a wide range of Automotive Integrated Circuit Ics products, including power management ICs, battery management ICs, and safety ICs. Texas Instruments Incorporated is known for its innovative products and its strong customer support. The company has a global network of sales and support offices, and it is committed to providing its customers with the best possible service.
Key Companies in the Automotive Integrated Circuit Ics Market Include
- Texas Instruments
- Renesas Electronics
- Qualcomm
- TDK
- NXP Semiconductors
- Analog Devices
- STMicroelectronics
- Murata Manufacturing
- Broadcom
- Wolfspeed
- ROHM
- Infineon Technologies
- ON Semiconductor
- Mitsubishi Electric
- Vishay Intertechnology
Automotive Integrated Circuit Ics Market Industry Developments
The global automotive integrated circuit (IC) market is projected to reach $102.81 billion by 2032, exhibiting a CAGR of 9.49% during the forecast period (2024-2032). The increasing demand for advanced driver-assistance systems (ADAS), autonomous vehicles, and electric vehicles is driving the growth of the market.Recent news developments include the launch of new automotive ICs by major semiconductor manufacturers such as Infineon, NXP Semiconductors, and Renesas Electronics. These ICs offer improved performance, power efficiency, and reliability for various automotive applications. Additionally, the growing adoption of 5G technology in vehicles is expected to create new opportunities for automotive ICs in the coming years.
Automotive Integrated Circuit Ics Market Segmentation Insights
Automotive Integrated Circuit Ics Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two Wheelers
Automotive Integrated Circuit Ics Market IC Technology Outlook
- Silicon Carbide (SiC)
- Gallium Nitride (GaN)
- Silicon-on-Insulator (SOI)
- Complementary Metal-Oxide-Semiconductor (CMOS)
Automotive Integrated Circuit Ics Market Application Outlook
- Power Management
- Infotainment
- Safety and Security
- Telematics
Automotive Integrated Circuit Ics Market Level of Automation Outlook
- Level 1
- Level 2
- Level 3
- Level 4
- Level 5
Automotive Integrated Circuit Ics Market Chip Design Outlook
- Full-Custom Design
- Semi-Custom Design
- Application-Specific Integrated Circuit (ASIC) Design
Automotive Integrated Circuit Ics Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
41.5 (USD Billion) |
| Market Size 2023 |
45.44 (USD Billion) |
| Market Size 2032 |
102.81 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.49% (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 |
Texas Instruments, Renesas Electronics, Qualcomm, TDK, NXP Semiconductors, Analog Devices, STMicroelectronics, Murata Manufacturing, Broadcom, Wolfspeed, ROHM, Infineon Technologies, ON Semiconductor, Mitsubishi Electric, Vishay Intertechnology |
| Segments Covered |
Vehicle Type, IC Technology, Application, Level of Automation, Chip Design, Regional |
| Key Market Opportunities |
1 Increasing demand for advanced driver assistance systems ADAS2 Growing electrification of vehicles3 Expansion of autonomous driving technology4 Rising demand for infotainment and connectivity features5 Adoption of AI and machine learning in automotive applications |
| Key Market Dynamics |
1 Increasing demand for autonomous vehicles2 Growing adoption of advanced driver assistance systems3 Electrification of vehicles4 Stringent emission regulations5 Technological advancements in semiconductors |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive Integrated Circuit Ics Market is expected to reach a valuation of 45.44 billion USD in 2023.
The Automotive Integrated Circuit Ics Market is projected to grow at a CAGR of 9.49% from 2024 to 2032.
The Automotive Integrated Circuit Ics Market is expected to reach a valuation of 102.81 billion USD by 2032.
The Asia-Pacific region is expected to hold the largest market share in the Automotive Integrated Circuit Ics Market, owing to the increasing production of automobiles in the region.
Automotive Integrated Circuit Ics are used in a wide range of applications, including engine control, transmission control, airbag control, and infotainment systems.
The key competitors in the Automotive Integrated Circuit Ics Market include NXP Semiconductors, Infineon Technologies, Renesas Electronics, STMicroelectronics, and Texas Instruments.
The major factors driving the growth of the Automotive Integrated Circuit Ics Market include the increasing demand for automobiles, the growing adoption of advanced driver assistance systems (ADAS), and the increasing electrification of vehicles.
The challenges faced by the Automotive Integrated Circuit Ics Market include the shortage of semiconductors, the rising cost of raw materials, and the increasing competition from emerging markets.
The opportunities for growth in the Automotive Integrated Circuit Ics Market include the development of new technologies, the expansion into new markets, and the increasing adoption of electric vehicles.
The key trends in the Automotive Integrated Circuit Ics Market include the increasing adoption of artificial intelligence (AI), the development of autonomous vehicles, and the increasing demand for connectivity solutions.
