Automotive Semiconductor Market Trends

Key Emerging Trends in the Automotive Semiconductor Market

There are major shifts and trends in the automotive semiconductor industry, which altering the landscape. Among the major forces behind these transformations is adoption of advanced technologies in vehicles. With automobile manufactures making efforts to improve the safety functionality, speed and connectivity features in their car’s semiconductor demands have increased by drastic proportions. Some of the major semiconductor content growth is observed in ADAS, infotainment systems and EVs.
Electric vehicles are a critical driving force for the automotive semiconductor market. As a result of the global shift towards environmentally friendly and eco-friendly transportation, automobile producers significantly invest in developing electric vehicles. This transition leads to a surge of demand for power semiconductors, which can be defined as the indispensable components in operating electric drivetrains.
It is anticipated that the power semiconductor market will continue to develop higher demands from manufacturers due to rising numbers of electric cars. Moreover, autonomous driving technology is one of the major trends in automotive semiconductor market. The implementation of ADAS that involves adaptive cruise control, lane departure warning and automated emergency braking systems depends on semiconductor parts- sensors processors and controllers.
However, the quest for autonomous vehicles is speeding up calling forth yet more advanced semiconductor solutions. Companies engaged in the automotive semiconductor market are vigorously working on innovating high-end chips and sensors for compliance with autonomous driving systems. The application of market trends to the automotive semiconductor landscape is not only limited to connectivity.
Modern cars have become more connected in recent years, with infotainment systems that provide onboard entertainment as well as telematics and advanced communication platforms. This development was driven by the increasing customer need for uninterrupted connectivity and improved ride. The chip companies are reacting by manufacturing semiconductors that meet the requirements of supporting high-speed data transfer, reliable communication, and solid protection against attacks for cyber vehicles.
But the automotive semiconductor market is not only smooth sailing. Disruptions in the industry have been caused by supply chain problems, geopolitics, and semiconductor shortages for continuous chips. These difficulties have revealed the fragility of the automotive supply chain calling for revision of survival strategies to maintain resilience and stability.
Companies that manufacture semiconductors and those involved in the auto industry are currently looking for opportunities to diversify their supply chains, ramp up overall inventory levels as well as engage more vigorously with each other so they can avert future problems.