Market Trends of Semiconductor Devices Industry for Electric Vehicles
This section covers the major market trends shaping the Electric Vehicles Semiconductor Devices Market according to our research experts:
Increased Use of Sensors, ICs and Automated Systems in Electric Vehicles is Expected to Drive the Market Growth
- The shift towards smaller nodes (approximately 10 nm) in the EV market will give semiconductor companies a competitive advantage by offering increased power and performance.
- The extensive use of ADAS systems in electric vehicles is a significant driver for the semiconductor device market. In this regard, introducing advanced mobility solutions, such as autonomous driving technology, is a significant growth driver for the APAC automotive semiconductor market. Autonomous vehicles are equipped with advanced driver-assistance systems, such as adaptive cruise control (ACC), blind spot monitor, glare-free high beam and pixel light, automatic parking system, automotive night vision system, automatic braking system, crosswind stabilizer, driver drowsiness detection system, lane change assistance system, and others. These advanced driving systems are stimulated with the help of semiconductors.
- In July 2022, Sony announced its next step in its electric vehicle and autonomous driving efforts, preparing a new sensor for autonomous driving that could slash the power used by a vehicle's onboard systems by as much as 70%. Furthermore, in 2022, Sony has been seen as more active in this area, launching an EV division and partnership with Honda and setting a goal to supply autonomous driving image sensors. These factors in the EV market, therefore, drive the automotive semiconductor market globally.
- Infineon Technologies targets five key areas within the electrified vehicle with solutions to optimize power efficiency and microcontrollers, ranging from high-power modules and power semiconductors to sensors and discrete components. These steps are expected to impact the studied market and help in its growth positively.
- Every top automaker continues to make electric cars more accessible. For instance, BMW is pushing for electric vehicles to make up 15-25% of overall sales over the coming years, while Honda is striving for two-thirds of its overall sales to be electric cars by 2030. These goals will extensively drive the semiconductor devices in the EV market.
- In June 2022, extending the broad line of inductive position sensors into the EV motor control market, Microchip Technology announced the LX34070 IC purpose-built for EV motor control applications. The LX34070 IC includes differential outputs, fast sample rates, and features that make it functional-safety-ready for ISO 26262 compliance in the Automotive Safety Integrity Level-C (ASIL-C) classification. These innovations from leading market players are continuously driving the studied market toward growth.
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Asia-Pacific to Hold Significant Market Share
- The region is witnessing an increased production of Electric Vehicles owing to the significant customer demand. According to the China Association of Automobile Manufacturers, China produced 2.9 million battery-electric vehicles in 2021, up 166% from 2020. Around 601,000 plug-in hybrid vehicles were produced in China in the same year, up by 131% from 2020.
- Demand for high-power, energy-efficient compound semiconductors, such as silicon carbide (SiC)-based components, gallium nitride (GaN) chips, and components is rising as more electric vehicles (EVs) are being used. SiC-based devices are also available to improve the power efficiency of EVs, lengthen charge times, increase speed, and boost towing capacity.
- Various governments are taking initiatives to boost the production of automotive chips. For instance, in March 2021, the South Korean government declared it would invest USD 176.8 billion in the domestic automotive semiconductor market over the next two years. To counteract potential long-term impacts, the government is taking measures in response to the global chip shortage.
- Furthermore, the region is witnessing strategic collaborations from various vendors, propelling the demand for semiconductor devices. For instance, in March 2022, Sony Corporation and Honda Motor Co. Ltd. announced their partnership to develop and sell battery-powered electric vehicles. The company will form a joint venture this year and aim to begin selling the first model in 2025.
- Moreover, in June 2022, Renesas Electronics, a Japan-based chipmaker, partnered with Tata Motors to design, develop and make semiconductor solutions. Areas of collaboration eyed by the firms include a non-exclusive partnership on emerging automotive technologies, such as advanced driver-assistance systems (ADAS) and wireless network solutions, including 5G.
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