Automotive Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 74.45 Billion |
| Market Size (2029) | USD 119.34 Billion |
| CAGR (2024 - 2029) | 9.90 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive Integrated Circuits Market Analysis
The Automotive Integrated Circuits Market size is estimated at USD 74.45 billion in 2024, and is expected to reach USD 119.34 billion by 2029, growing at a CAGR of 9.90% during the forecast period (2024-2029).
- The automotive industry has transformed rapidly over the past few years with the advent of numerous advanced technologies, such as 3D mapping applications, electric vehicles, and automobile automation. This has increased the demand for several advanced semiconductors, including sensors, memory devices, ICs, and many more. The growing developments of passenger cars and the demand for vehicle safety features have fueled the market growth of automotive integrated circuits.
- Another trend in the automotive industry is the shift toward electric vehicles. For instance, with the growth in EVs, the demand for power electronics is also rising, positively impacting the market studied. Semiconductors are critical to the future of the EV industry due to their capability to control the powertrain and battery. These devices are also used in the various touchscreens installed on the driver's dash and the back of passenger seats. As the demand for automation and sophistication in the automotive industry continues to rise, more ICs will be increasingly incorporated into onboard systems for various applications.
- Automotive cybersecurity is a growing concern with the increasing connectivity of vehicles. Logic ICs with built-in security features, encryption capabilities, and secure communication protocols will play a vital role in safeguarding vehicle systems and protecting against cyber threats. These trends represent potential directions for logic ICs in the automotive industry. However, the automotive industry is dynamic, and the pace of technological advancements, regulatory changes, and market demands can influence the logic IC market.
- Integrated circuits (ICs) are anticipated to carry out various intricate tasks. As technology progresses, there is a rising need for enhanced features and capabilities in electronic devices. To fulfill these demands, designers must integrate sophisticated ICs and algorithms. The expanded functionality results in more extensive and intricate designs, posing challenges in managing and optimizing the interactions between various components and impeding market growth.
- Macroeconomic factors like inflation significantly impact manufacturing, leading to higher costs. This can be due to various factors, such as higher prices for raw materials, increased shipping costs, and labor costs and shortages. As a result, manufacturers may be forced to raise their prices to maintain profitability, ultimately decreasing product demand. Inflation can also lead to contract constraints, shifts in labor, and input issues for manufacturers. Therefore, rising inflation could restrain the growth of the market studied.
Automotive Integrated Circuits Market Trends
Logic IC is Expected to Witness Significant Growth
- The emphasis on safety and functional requirements in the automotive industry is significant. Logic ICs ensure the safe and reliable operation of various automotive systems, including ADAS, autonomous driving, and powertrain control. The demand in the automotive market is fueled by the requirement for dependable logic ICs that deliver high performance and adhere to strict safety regulations like ISO 26262. Logic ICs can process and execute sophisticated algorithms and logical functions for vehicle control, monitoring, and communication.
- The pursuit of autonomous vehicles is a significant trend in the automotive industry. Logic ICs are essential for the complex processing and decision-making required for autonomous driving. According to Roland Berger, in 2025, the penetration rate of level 4 light autonomous vehicles is expected to be 1%, with a gradually increasing market share in subsequent years. In addition, 5% of the global market will comprise level 4 light autonomous vehicles by 2030. As self-driving technology advances, logic ICs with increased processing power, advanced sensor integration, and robust safety features are expected to be in demand.
- Furthermore, connected cars are becoming increasingly common, with features like vehicle-to-vehicle (V2V) communication, vehicle-to-infrastructure (V2I) communication, and in-car connectivity. Logic ICs are critical for managing connected vehicles' communication protocols, data processing, and connectivity functions. According to SBD Automotive, it is expected that 96% of all new vehicles to be imported into the world by 2030 will be equipped with connectivity.
- Moreover, the shift toward EVs is gaining momentum due to environmental concerns and government regulations. EVs are based on advanced power electronics and battery management, which requires specialized logic ICs to ensure optimum energy use, motor control, or charging infrastructure integration. Logic ICs are crucial for processing multimedia data, managing user interfaces, and enabling seamless integration with external devices. Future trends include logic ICs with enhanced security measures and robust authentication mechanisms to ensure the integrity and privacy of automotive data.
Asia-Pacific is Anticipated to Hold a Significant Market Share
- Asia-Pacific is a robust and rapidly growing automotive integrated circuits market. With emerging economies, robust manufacturing capabilities, and increasing demand for electronic devices, Asia-Pacific is pivotal in driving integrated innovation, production, and consumption of circuits.
- The rapid growth of EV markets in Asia-Pacific is expected to significantly impact the logic integrated circuit (IC) market. As EVs incorporate more advanced technologies like ADAS and intelligent driving systems, the demand for ICs, especially those for processing and control systems, is likely to surge. The shift toward EVs also necessitates developing charging infrastructure, which relies heavily on IC technology. As a result, semiconductor companies specializing in logic ICs are poised to benefit from the expanding EV markets across the region.
- Asia-Pacific is a global manufacturing hub for semiconductor production, with countries such as China and Japan leading in semiconductor manufacturing and assembly. The presence of leading semiconductor foundries, assembly and testing facilities, and electronics manufacturing services enables efficient and cost-effective production of logic ICs. It is home to a vast and rapidly expanding automotive market with developments in ADAS and EVs and increasing industrialization and automation.
- China is widely recognized as a significant leader in the automotive and mobility industry owing to the consistent performance of the domestic market and its enormous potential. The Chinese Ministry of Industry and Information Technology projects that domestic vehicle production will reach 35 million by 2025, further strengthening its position as the world's leading car manufacturer. According to CAAM, during August 2023, China's new energy vehicle sales amounted to 846,000 units, 808,000 of which were passenger EVs and 39,000 were commercial electric vehicles, and sales of BEVs and PHEVs were 559,000 and 248,000 vehicles, respectively. These factors are expected to contribute to the segment’s growth.
Automotive Integrated Circuits Industry Overview
The automotive integrated circuits market is fragmented with the presence of major players like Intel Corporation, Texas Instruments Inc., Analog Devices Inc., Infineon Technologies AG, STMicroelectronics NV, NXP Semiconductors NV, On Semiconductor Corporation, and many others. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments, and acquisitions to enhance product offerings and gain sustainable competitive advantage.
- March 2024: Analog Devices Inc. and the BMW Group announced the early adoption of ADI's E²B technology, a 10BASE-T1S Ethernet to the Edge bus, within the automotive industry. This strategic partnership highlights the importance of automotive Ethernet connectivity in developing new zonal architectures and supporting automotive megatrends such as software-defined vehicles. The BMW Group, a significant original equipment manufacturer (OEM), will implement ADI's E²B technology for future vehicle models in its ambient lighting system design.
- January 2024: Infineon Technologies AG and GlobalFoundries announced a new multi-year deal. The agreement focused on Infineon's AURIX TC3x 40-nanometer automotive microcontrollers alongside its power management and connectivity solutions. Central to this partnership was an embedded non-volatile memory (eNVM) technology designed to bolster the reliability of automotive applications. This technology meets and exceeds future vehicle systems' stringent safety and security demands.
Automotive Integrated Circuits Market Leaders
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Intel Corporation
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Texas Instruments Inc
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Analog Devices Inc
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Infineon Technologies AG
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STMicroelectronics N.V.
*Disclaimer: Major Players sorted in no particular order
Automotive Integrated Circuits Market News
- April 2024: NXP Semiconductors introduced the S32N55 processor, marking the debut of the S32N series designed for vehicle super-integration. Positioned as the cornerstone of the S32 CoreRide central compute solution, this processor delivers a blend of safe, real-time, and application processing capabilities, catering to automakers' varied central compute requirements. Specifically engineered for high performance, the S32N55 processor ensures safe, centralized, and real-time control over vehicles.
- March 2024: Toshiba Electronic Devices & Storage Corporation initiated volume shipments of its Smart MCD Series gate driver ICs, incorporating an embedded microcontroller (MCU). The first product in this series, TB9M003FG, is designed for sensorless control of three-phase brushless DC motors, typically used in automotive applications. The TB9M003FG gate driver integrates a microcontroller (Arm Cortex-M0), flash memory, power control functions, and communication interfaces.
Automotive Integrated Circuits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Advanced Features Being Incorporated into Automotive Electronics
5.1.2 Increasing Vehicle Production
5.2 Market Restraints
5.2.1 Complex Fabrication Process Owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Analog IC
6.1.2 Logic IC
6.1.3 Memory
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By Geography***
6.2.1 United States
6.2.2 Europe
6.2.3 Japan
6.2.4 China
6.2.5 South Korea
6.2.6 Taiwan
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Intel Corporation
7.1.2 Texas Instruments Inc.
7.1.3 Analog Devices Inc.
7.1.4 Infineon Technologies AG
7.1.5 STMicroelectronics NV
7.1.6 NXP Semiconductors NV
7.1.7 On Semiconductor Corporation
7.1.8 Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation)
7.1.9 Microchip Technology Inc.
7.1.10 Renesas Electronics Corporation
7.1.11 MediaTek Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Automotive Integrated Circuits Industry Segmentation
Automotive integrated circuits (ICs) are pivotal in modern automotive manufacturing, bolstering safety, efficiency, and overall performance. These miniature devices, used in applications ranging from engine control units to battery management systems, have transformed the automotive industry. With the ongoing evolution of automotive technology, integrated circuits are poised to take on a pivotal role in shaping the future of transportation. This shift promises safer, more efficient, and environmentally friendly vehicles.
The study tracks the revenue accrued through the sale of integrated circuit products by various players globally. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of the aftereffects of the COVID-19 pandemic and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The automotive integrated circuits market is segmented by type (analog IC, logic IC, memory, and micro [microprocessors (MPU), microcontrollers (MCU), and digital signal processors]) and geography (the United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value in USD for all the above-mentioned segments.
| By Type | |||||
| Analog IC | |||||
| Logic IC | |||||
| Memory | |||||
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| By Geography*** | |
| United States | |
| Europe | |
| Japan | |
| China | |
| South Korea | |
| Taiwan |
Automotive Integrated Circuits Market Research FAQs
How big is the Automotive Integrated Circuits Market?
The Automotive Integrated Circuits Market size is expected to reach USD 74.45 billion in 2024 and grow at a CAGR of 9.90% to reach USD 119.34 billion by 2029.
What is the current Automotive Integrated Circuits Market size?
In 2024, the Automotive Integrated Circuits Market size is expected to reach USD 74.45 billion.
Who are the key players in Automotive Integrated Circuits Market?
Intel Corporation, Texas Instruments Inc, Analog Devices Inc, Infineon Technologies AG and STMicroelectronics N.V. are the major companies operating in the Automotive Integrated Circuits Market.
Which is the fastest growing region in Automotive Integrated Circuits Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Integrated Circuits Market?
In 2024, the Asia Pacific accounts for the largest market share in Automotive Integrated Circuits Market.
What years does this Automotive Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the Automotive Integrated Circuits Market size was estimated at USD 67.08 billion. The report covers the Automotive Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Integrated Circuits Industry Report
Statistics for the 2024 Automotive Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
