Automotive Chip Market Size to Grow by USD 127.5 billion till 2031, with 7.63% CAGR | TMR Study
Transparency Market Research
6 min read
Transparency Market Research
Increasing sales of autonomous and advanced connected vehicles will drive the demand for automotive chips.
Wilmington, Delaware, United States, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Transparency Market Research Inc. - The global automotive chip market was worth US$ 57.2 billion in 2020. Between 2021 and 2031, it is predicted to increase at a CAGR of 7.63%. The global automotive chip market is projected to reach US$ 127.5 billion by 2031.
Smart manufacturing methods and Industry 4.0 concepts are increasingly integral to the automotive industry, which is undergoing a digital transformation. For improved automation, real-time monitoring, and production efficiency, sensors, controllers, and communication chips are integral to this transformation.
With the increasing sophistication of vehicles, consumers are demanding enhanced functionality and user experience. More powerful and specialized semiconductor chips are required to power advanced infotainment systems and sophisticated driver assistance features.
A turbocharger has traditionally been used in internal combustion engines, but hybrids and electric vehicles are now influencing the turbocharger market. Boosters and turbochargers can enhance the performance and range of electric vehicles.
Efficiencies, durability, and lightweight turbochargers continue to be improved through innovation in materials and design. Advanced aerodynamics and titanium are among the materials that are used to improve performance.
Key Findings of Market Report
The automotive chip was valued at over 59% of the share in 2020.
In 2020, security chips accounted for a significant global automotive chip market share.
The increased range and faster charging of newer electric vehicles will drive demand for telematics, infotainment, and powertrain components.
Across the globe, Europe dominates the automotive chip market
China dominates the automotive chip market in East Asia as the largest automobile manufacturing country.
Global Automotive Chip Market: Growth Drivers
Increasingly eco-friendly and sustainable transportation options have led to a boost in electric vehicle sales. Due to the increased production of electric vehicles, battery management systems, electric drivetrains, and other crucial parts increasingly depend on specialized semiconductor chips.
The automotive chip market is heavily influenced by autonomous vehicles. A wide variety of sophisticated semiconductor solutions are used in advanced driver assistance systems (ADAS) and autonomous driving technologies to improve vehicle safety and enable real-time decision-making significantly.
Infotainment, telematics, and communication capability are all becoming more advanced in modern cars. Connecting vehicles to external systems and processing data requires a robust semiconductor chip network.
Automakers rely on artificial intelligence (AI) and machine learning technology to enhance features like image and voice recognition. Data-processing chips designed for efficient data processing must integrate AI-driven features into vehicles.
In the automotive industry, watches, electronic control units (ECUs), and advanced displays are growing in complexity. As a result, high performance and excellent user experience require semiconductor solutions with increased capabilities.
Automakers are adopting innovative technologies to reduce emissions and improve fuel efficiency. As part of the overall goal of developing environmentally friendly vehicles, automotive chips help build efficient powertrain systems.
The auto industry has been expanding steadily in Asia, especially in China, South Korea, Japan, and India. Automotive chips, used in various electronic components, directly contribute to the surge in vehicle manufacturing.
Recent years have seen an increase in the number of electric vehicles on the road. Asia, especially China, is the primary producer and market for electric cars. Electric vehicles' battery management and power electronics systems rely heavily on semiconductor technology.
Autonomous and connected vehicles are transforming the automotive industry. Using sophisticated chip technology, these advancements require sophisticated sensors, communication systems, and processing units. Investing in research and development helps Asian countries stay at the forefront of technological advances.
The Asian Pacific region increasingly implements policies and incentives to promote electric vehicle adoption and development. As a result, automotive chips become more in demand.
Global Automotive Chip Market: Key Players
Automobile turbocharger manufacturers are expanding their presence through mergers, acquisitions, and new manufacturing facilities.
American Industrial Ltd.
BorgWarner Inc.
Bosch Mahle Turbo Systems Technology GmbH & Co. KG
Continental AG
Garrett Motion Inc.
Eaton Corporation PLC
Honeywell International Inc.
IHI Corporation
Mitsubishi Heavy Industries Ltd.
Precision Turbo & Engine Inc.
Rotomaster International
THE TURBO ENGINEERS GmbH
Turbo Energy Private Limited.
Turbonetics Inc.
Other Key Players
Key Developments
In May 2023, Carrar partnered with Gentherm, a manufacturer of thermal management systems for automotive applications, along with a leader in temperature management for medical patients, to deliver two-phase immersion thermal management systems for electric vehicle (EV) battery modules that control liquid-level, vapor, and pressure simultaneously.
In June 2023, ZF, a technology company, showcased its electric vehicle thermal management system at its annual Global Technology Day event. EVs could get a one-third increase in range by using the system in the winter. The electric drivetrain is optimized with an 800-volt silicon carbide reduction gearbox and power electronics.
Electric Vehicle Market - Electric Vehicle Market is Projected to Cross a Worth of 1.9 Trillion by Registering a CAGR of 29.5% Between Forecast Period of 2022-2031
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