Market Trends of Semiconductor Memory Industry For Automotive
ADAS to Hold a Significant Market Share
- The growing trend towards self-driving or autonomous vehicles is driving the expansion of advanced driver assistance systems (ADAS), as they have been shown to increase car safety and, in turn, enhance the safety of passengers. Studies have revealed that most car incidents occur due to human error, and ADAS technology can regulate, monitor, and decrease road fatalities.
- Governments around the world are taking measures to speed up the deployment of autonomous vehicles, which will fuel demand for ADAS. For instance, in November 2021, the UAE Cabinet approved a plan to test self-driving vehicles, making it the first Middle Eastern country and the second globally to test self-driving cars on its streets.
- The UK Government recently announced the launch of automated lane keeping system (ALKS) technology, which will help expedite the deployment of self-driving cars in the region. Designed for use in slow traffic, ALKS allows a vehicle to drive itself in a single lane while retaining the ability to return control to the driver when necessary.
- Moreover, the market is seeing the entry of several new players seeking to enter the rapidly expanding market. For example, in October 2022, Minda Corporation partnered with Korea's Daesung Eltec to design, validate, and set up a manufacturing line for ADAS systems for passenger vehicles, commercial vehicles, and off-road vehicles. Such advancements are expected to increase demand for the semiconductor market during the forecast period.
- Additionally, the increasing demand for autonomous vehicles is further driving the need for ADAS as they facilitate various levels of autonomous driving, depending on the installed features in the car. Furthermore, autonomous vehicle startups are attracting various funding sources, which will further boost market demand. According to Tracxn Technologies, as of April 2022, Cruise, the US autonomous vehicle company, was the most well-funded startup in the field of autonomous driving worldwide.
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Asia-Pacific to Witness Significant Growth
- The Asia-Pacific semiconductor memory market for automotive is experiencing significant growth, fueled by increased automotive manufacturing and partnerships between various automotive original equipment manufacturers (OEMs) and semiconductor manufacturers. While fuel efficiency and cost used to be the most important factors for automobile buyers, now technology, safety, and luxury are becoming more significant.
- The growing demand for electric vehicles (EVs) is expected to further drive the expansion of the Asia-Pacific semiconductor memory market. To keep up with this demand, automobile manufacturers must continue to innovate and manufacture self-driving cars that have already attracted a significant number of customers in major automotive manufacturing countries.
- However, the growth trajectory of fully-autonomous and semi-autonomous automobiles will depend on several factors, including consumer willingness to accept fully-automated vehicles, technology advancements, pricing, and suppliers' and OEMs' capacity to address major concerns related to vehicle safety.
- China is a major contributor to the semiconductor memory market for automobiles in the Asia-Pacific region, owing to the increased use of safety features and infotainment applications like navigation. dvanced driver assistance systems (ADAS) have also grown in popularity in China, with features such as parking assist, forward collision warning, adaptive cruise control, blind-spot recognition, and lane-departure warning contributing significantly to the market's growth.
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