Automotive Chip Market Analysis Report By Component Type, By Application Type, By Vehicle Type And Segment Forecasts From 2017 To 2025

Industry Insights

The global automotive chip market size was accounted for USD 22.73 billion in 2016. It is projected to witness a CAGR of 10.7% over the forecasted years, 2017 to 2025. The rising need to adopt these chips in smart vehicles for data networking and increasing awareness about the safety and security of passengers is expected to boost market growth across the globe.

The rising influence and commercialization of automated vehicles like driverless taxis are gaining traction worldwide. These vehicles require data preprocessing tools for analyzing real-time data obtained from sensors of vehicles. Thus, the need for highly-powered automotive chips is estimated to trigger up in the upcoming years.

These chips are also called miniature computers. Those produced by companies like NVIDIA CORPORATION and AQAUNTIA CORP. are projected to be an integral part of smart vehicles. Also, their feature of ensuring vehicle safety by the deployment of anti-theft systems, anti-hijack systems, and smart keys is expected to contribute majorly towards the market growth.

Component Type Insights

The component segment of logic ICs is anticipated to witness significant growth until 2025. This can be associated with the rising sales of a wide range of ultra-luxury cars across the globe. Further, their ability to control navigation and infotainment systems using voice recognition is expected to boost market growth in the upcoming years.

The microcontrollers and microprocessor component segment is projected to account for a significant share across the global market until 2025. On the other hand, the segment of analog ICs is anticipated to continue its dominance over the forecasted period on account of their rising adoption for enhancing premium features in luxury vehicles.

Application Type Insights

The safety application segment is expected to witness the highest CAGR over the forecasted period, 2017 to 2025. This growth can be attributed to the rising awareness prevailing among the millennial population over safety and security while driving. Further, the surging number of rules and regulations being imposed on ensuring safety standards of vehicles are expected to trigger the market demand.

The segment of body electronics accounted for more than 25.0% share across the global market in 2016. On the other hand, the telematics and infotainment segment is projected to gain traction due to the rapid technological advances being undertaken by automotive manufacturers. Further, the adoption of advanced navigation systems in vehicles is anticipated to propel market demand.

Vehicle Type Insights

The global automotive chip market can be segmented into passenger vehicles and commercial vehicles based on the vehicle type. The passenger vehicle segment accounted for a significant share across the global market in 2016. This can be associated with the rising demand for sedans, luxury vehicles, and SUVs across the globe. This segment is also projected to witness a 10.8% CAGR over the forecasted period, 2017 to 2025.

The segment of commercial vehicles includes HCVs (Heavy Commercial Vehicles) and LCVs (Light Commercial Vehicles). It is also projected to witness substantial growth in the upcoming years owing to increased spending on infrastructure, mining, and e-commerce activities and reduced interest rates on these vehicles.

Regional Insights

In 2016, the market across North America was valued at USD 3.41 Billion in terms of revenue. It is also projected to witness substantial growth in the upcoming years. This can be attributed to the rising demand for personal vehicles prevailing among the millennial population across developed countries like the U.S. and Canada.

In 2016, the Asia Pacific accounted for a significant share across the global market. This can be attributed to the rising number of key players operating across countries like China, Japan, and India. Europe held the second-largest share across the global market due to the increasing number of luxury car producers like BMW, AUDI, and Porsche.

COVID-19 Impact Insights

The global automotive chip market has been negatively impacted on account of the ongoing COVID-19 pandemic. The imposition of lockdown and travel restrictions has reduced the usage of automobiles. As the majority of the key players operating in this market are located in China, their international supply chain has been hindered. Moreover, a decrease in the demand for smart and luxury vehicles due to economic instability has hindered market growth. However, rapid technological advances being undertaken by the key players for enhancing the usage of these chips and the emergence of IoT technology in connected cars are projected to overcome this obstruction and register significant growth over the post-pandemic period.

Automotive Chip Market Share Insights

The global market includes key players such as Infineon Technologies, NXP Semiconductors, ON Semiconductor, Renesas Electronics, Texas Instruments Incorporated, STMicroelectronics, and Robert Bosch GmbH. These players hold a dominant share across the global market. Moreover, companies like NVIDIA CORPORATION and AQUANTIA CORP. are focusing on developing power chips having large processing, and more networking capacity for autonomous vehicles.

The shifting trend towards the adoption of connected cars is propelling the market growth for key players like Broadcom and Marvell that have a joint race with organizations like Nvidia. These players are constantly engaged in developing chip systems having a capacity of 100-1000 megabit-per-second. These technological advances are expected to trigger upmarket growth for automotive chips across the globe.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global automotive chip market based on component type, application type, vehicle type, and region:

• Component Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Logic ICS
    • Analog ICS
    • Microcontrollers & Microprocessors
    • Memory

• Application Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Chassis
    • Powertrain
    • Safety
    • Telematics & Infotainment
    • Body Electronics

• Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Passenger Vehicles
    • Commercial Vehicles

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Mexico
        • Canada
    • Europe
        • The U.K.
        • Germany
    • The Asia Pacific
        • India
        • China
        • Japan
    • RoW