The global automotive semiconductor market is on track to surpass $88 billion by 2027, driven by the surging demand for high-performance computing (HPC) chips, graphics processing units (GPUs), radar chips, and laser sensors. This growth is fueled by the increasing adoption of the advanced driver assistance system (ADAS), electronic vehicles (EVs), and Internet of Vehicles (IoV), bringing new growth opportunities for the automotive semiconductor sector, according to a recent report titled 2023 Worldwide Competitive Landscape of Automotive Semiconductor.
IDC predicts that as the value of semiconductors per vehicle continues to rise, semiconductor companies will become increasingly critical to the automotive supply chain.
Leading semiconductor companies such as Infineon, NXP, STMicroelectronics, Texas Instruments (TI), and Renesas Electronics are investing heavily in developing solutions for next-generation microcontrollers, system on a chip (SoC), and high-resolution radars. To meet the needs of automobiles for higher volume, higher performance, and higher safety of semiconductors, they continuously enhance ADAS, autonomous driving systems, and cockpit and networking features and integrate complex electronic control units (ECUs) and sensor fusion technology.
Market Share Breakdown
According to International Data Corporation (IDC)'s recently released report, 2023 Worldwide Competitive Landscape of Automotive Semiconductor (Doc #US50917724, July 2024), The top five vendors in the automotive semiconductor market captured over 50% of the market share in 2023. Infineon led the market with a share of 13.9%; it was followed by NXP and STMicroelectronics, holding a market share of 10.8% and 10.4%, respectively; TI and Renesas Electronics also demonstrated strong performance, accounting for 8.6% and 6.8%, respectively, of the total share. The market landscape is as follows:
Infineon
Through ongoing technological innovation, strategic acquisitions, robust supply systems, and close cooperation with automotive original equipment manufacturers (OEMs), Infineon consistently elevated its market position in the field of power electronics and advanced control systems, establishing itself as a leader in the power semiconductor market.
NXP
NXP possesses deep expertise in vehicle-to-everything (V2X) communication and security technologies and continually innovates and iterates. It is a frontrunner in this field as a supplier of comprehensive product solutions through close cooperation with automotive OEMs and Tier 1 suppliers.
STMicroelectronics
STMicroelectronics offers innovative solutions for the automotive industry by virtue of its specialization in micro-electromechanical systems (MEMS) and power semiconductors.
Texas Instruments (TI)
TI, with a wide range of analog chips and embedded solutions, delivers product portfolios that meet customers' needs. Meanwhile, it has a robust supply chain management and product quality management system to support it.
Renesas Electronics
Renesas Electronics offers a comprehensive collection of microprocessors and SoCs to ensure functional safety and reliability. Meanwhile, it employs strategic acquisitions and cooperation to maintain its leading edge in the industry.
The Future of the Automotive Semiconductor Market
Advancements in the automotive sector have fueled the demand for high-performance, high-safety semiconductors. As EVs and autonomous driving technologies evolve, those semiconductor companies will continue to play a key role in the global automotive semiconductor market.
According to Adela Guo, Research Director at IDC Asia Pacific, “The common strengths of these leading semiconductor vendors include substantial R&D investment and strong technological leadership, comprehensive product portfolios, solid strategic partnerships, efficient global operations, as well as safe and reliable product performance. These features empower them to stay ahead of the competition and propel the sustainable development of the automotive sector towards electrification, networking, and intelligence.”
The Race for Innovation
The automotive semiconductor market is a dynamic and competitive landscape. Companies are constantly innovating and investing in new technologies to gain an edge. This race for innovation is driving the growth of the market and making it an exciting sector to watch. As the automotive industry continues to evolve, the role of semiconductors will only become more critical. The companies that can best adapt to these changes and deliver the solutions that the market needs will be the ones that emerge as leaders in this rapidly growing market.
