DUBLIN--(BUSINESS WIRE)--The "Global Automotive Chip Market: Analysis By Vehicle Type, By Device Type, By Application, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2026" report has been added to ResearchAndMarkets.com's offering.

The global automotive chip market was valued at US$52.53 billion in 2021, and is projected to be worth US$92.21 billion in 2026. Automotive chips are a unique class of electronic parts with the ability to conduct electricity under specific conditions. In order to assure that the corresponding component functions effectively under all circumstances, automotive chips are employed in vehicles.

Over the next years, there will be potential for market revenue to increase due to the anticipated development and commercialization of completely automatic vehicles, such as driverless taxis. High-powered automotive chips are expected to be widely employed in automobiles in the near future since fully autonomous vehicles require real-time data processing from numerous sensors mounted all around the vehicle. The automotive chip market is determined to grow at a CAGR of 12.07% over the analyzed period of 2022-2026.

Market Segmentation Analysis:

By Vehicle Type: The report identifies two segments on the basis of vehicle type: Passenger Vehicle, and Commercial Vehicle. Among the vehicle type, the passenger vehicle segment accounted for about 62% of the automotive chip market in 2021 and experienced the fastest growth over the course of the forecast period. This is because several countries in Asia Pacific, North America, and Europe have passed regulations requiring the integration of various types of safety measures in the passenger car segment.

By Device Type: The report identifies six segments on the basis of device type: MCU, Analog IC, Sensor, Logic IC, Discrete and Memory. Among the device type, the MCU segment held the maximum share in 2021, accouting for around 30% in the automotive chip market. Microcontrollers that are in charge of automating vehicle tasks are now in high demand due to the development in automation. MCUs are employed in automobiles to carry out automatic tasks like distributing electricity to various vehicle components, keeping the exhaust system clean, and lowering fuel usage. Additionally, as vehicles become electrified, there is a growing demand for fresh, specialized MCUs that are tailored to meet the requirements of electric vehicles (EVs).

By Application: The report provides the bifurcation of automotive chip market into ten segments on the basis of application: ADAS, Body Electronics, Infotainment, EV/HEV, Chassis, Safety, ICE Powertrain, Instrument Cluster, Aftermarket and Automotive HPC. The automotive HPC segment is expected to grow at a significant pace during the forecasted period. Automotive high-performance computing (HPC) implements a centralized computer architecture in which a single HPC module manages numerous functional domains, including body electronics, chassis electronics, and safety electronics. The use of HPC modules is enabling automakers to consolidate functionality previously carried out by a large number of ECUs with embedded software to a software-defined electrical and electronic architecture that runs numerous service-oriented applications.

By Region: In the report, the global automotive chip market is divided into four regions: Asia Pacific, North America, Europe, and ROW. Asia Pacific accounted for the largest share of 38% in the global automotive chip market in 2021. Increased vehicle production and ongoing collaborations between automotive OEMs and semiconductor producers are driving the Asia Pacific automotive chip market. The comfort and luxury a car offers now outweigh price and fuel efficiency as the most crucial aspects to take into account when purchasing one. This may be explained by the fact that the demand for premium and semi-luxury cars is increasing globally, which is forcing automakers to install more electronic components and driving the Asia-Pacific automotive chip market.

Impact Analysis of COVID-19 and Way Forward:

The COVID-19 pandemic has wreaked havoc on global automotive chip market. The automotive chip market also took a tumble under this situation and the chip shortage problem worsened. Factors that led to a decline in automotive chip manufacturing in 2020 include a lack of raw materials, a skilled workforce, and the closure of many automotive manufacturing plants.

Throughout 2020, chip shortages may continue to have negative consequences for global motor vehicle production. However, the post-COVID environment appears to be fortunate for the automotive chip market. It is worth noting that the tight supply of chips are improving. In fact, the improving situation led to better-than-expected light vehicle production as recently as the second half of 2021.

Market Dynamics

Growth Drivers

  • Increased Disposable Income
  • Increasing Demand for Electric Vehicles
  • Increasing Number of Road Fatalities
  • Increasing Semiconductor Content in Vehicles
  • Improved ADAS Functionalities
  • Rise in Demand for In-Vehicle Infotainment System (IVI)
  • Government Safety Norms

Challenges

  • Cyber Security Threats
  • High Entry Barriers and Standardized Manufacturing Process

Market Trends

  • Rising Demand of Connected Cars
  • Autonomous Driving
  • 5G Upgrades
  • Vehicle to Cloud Connectivity
  • Emergence of Lazy Economy

Companies Mentioned

  • NXP Semiconductor N.V.
  • Infineon Technologies AG
  • Renesas Electronics Corporation
  • STMicroelectronics N.V
  • ROHM Semiconductor
  • Toshiba Corporation
  • Robert Bosch GmbH
  • Qualcomm Incorporated Inc.
  • Microchip Technology Inc.
  • ON Semiconductor Corporation
  • NVIDIA Corporation
  • Texas Instruments
  • Analog Devices, Inc. (Maxim Integrated)

For more information about this report visit https://www.researchandmarkets.com/r/elon2v

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