Automotive Chip Market Size, Share, Industry Trends Report, 2018-2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive Chip Market


The global automotive chip market size was valued at USD 22.73 billion in 2016. It is projected to expand at a CAGR of 10.7% over the forecast period. Surging demand for enhanced automobile connectivity chips, which provide high capacity data networking, and new age smart vehicles that enhance the safety of drivers and pedestrians is one of the key trends triggering market growth.
 
The expected development and commercialization of fully automatic vehicles, such as driverless taxis, is set to provide opportunities for growth in market revenue over the coming years. As fully automatic vehicles need real-time data processing from a large number of sensors placed all over the vehicle, high-powered automotive chips are poised to be largely used in vehicles in the near future. Automotive chips, also termed as miniature supercomputers by companies such as AQAUNTIA CORP. and NVIDIA CORPORATION, are expected to become the standard feature of smart vehicles.
Concerns associated with protection of driver and passengers from accidents is estimated to stir up the demand for automotive chips. Furthermore, these chips enhance vehicle security systems such as anti-theft system, smart key, automotive vehicle location, and anti-hijack systems.
Increasing awareness regarding shared connectivity & mobility as well as spiraling demand for fully autonomous cars and automatic parking are anticipated to provide a fillip to the market. Growing inclination toward comfort & safety features, increasing sales of ultra-luxurious vehicles, and other technological advancements are other factors revving up the adoption of the product in the automotive industry. Besides these factors, burgeoning sales of high-end & middle segment cars are also likely to drive the market.

Market Segmentation, Outlook & Viewpoint: Global Automotive Chip Market


Component Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Logic ICs

Analog ICs

Microcontrollers & Microprocessors

Memory


Application Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Chassis

Powertrain

Safety

Telematics & Infotainment

Body Electronics


Vehicle Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Passenger Vehicles

Commercial Vehicles


Key Players, Recent Developments & Regional Insights: Global Automotive Chip Market


The logic ICs segment is expected to reach noteworthy valuation by 2025, owing to increasing sales of ultra-luxury cars. Automotive chips enable drivers to control the entire infotainment and navigation system using just their voice. They also ensure enhanced connectivity and mobility.
The use of the product results in improved instrument panel controls. In addition, it offers driver guidance based on detailed information regarding gas level, battery level, and maintenance level, which are attained with the help of sensors present inside and outside the vehicle.
The microcontrollers & microprocessors component type segment is estimated to hold a significant market share by 2025. The analog ICs segment is projected to lead the market throughout the forecast period owing to soaring adoption of high-tech features in luxury vehicles.
Application Insights
The safety segment is expected to poised to register the highest CAGR during the forecast period owing to growing awareness among people regarding vehicle and passenger safety. Furthermore, rising implementation of vehicle safety standards coupled with several regulations pertaining to passenger safety is anticipated to spur the growth of the market.
The body electronics segment represented more than a quarter of the overall revenue in 2016. The telematics & infotainment segment is likely to tread along a healthy growth track over the forecast period owing to technological advancements in the automotive industry. Additionally, increasing adoption of navigation systems is benefitting the growth of the overall market.
Vehicle Insights
Based on vehicle type, the automotive chip market can be divided into passenger and commercial vehicles. Passenger vehicles include all personal use transport vehicles such as SUVs, luxury vehicles, and sedans and are commonly designed for a seating of five individuals. Demand for the product will remain higher for this vehicle type throughout the forecast period. The segment is poised to exhibit a CAGR of 10.8% over the same period.
 
Commercial vehicles include Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs). The commercial vehicles segment is anticipated to register phenomenal CAGR during the same period owing to sustained economic activities, rising spending on infrastructure sector, increasing e-commerce and mining activities, and lower interest rates on commercial vehicles.

Regional Insights
The market size in North American was valued at USD 3.41 billion in 2016 and is likely to register healthy growth over the coming years. On the other hand, Asia Pacific is expected to reach USD 26.05 billion by 2025, owing to increasing production of vehicles in India, China, and Japan.
Asia Pacific held the most prominent position in 2016 as the region was responsible for over half of the total global production of vehicles in the year. Meanwhile, Europe accounted for the second largest market share. The Europe market is estimated to witness significant growth during the forecast period due to presence of prominent luxury car manufacturers such as AUDI, BMW, Porsche, and Volkswagen.
Automotive Chip Market Share Insights
Prominent companies in the market include NXP Semiconductors, Infineon Technologies, Renesas Electronics, STMicroelectronics, Texas Instruments Incorporated, Robert Bosch GmbH, and ON Semiconductor. These companies collectively hold approximately 50.0% of the global market.
Additionally, companies such as AQUANTIA CORP. and NVIDIA CORPORATION are focusing on introducing high networking capacity and large processing power chips for fully autonomous vehicles. Furthermore, Qualcomm Technologies, Inc. is also set to acquire the current major market entity, NXP Semiconductors, in a deal stated to have a transaction value of over USD 35.0 billion.
Development of connected cars is a source of attraction for several major market entities such as Marvell and Broadcom, which have recently joined the race with companies such as Nvidia to develop 100-1000 megabit-per-second chip systems for the market. These developments are projected to foster revenue growth over the forecast period.

Key Insights Covered: Global Automotive Chip Market
1.  North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive Chip industry.
2. Global major manufacturers' operating situation (sales, revenue, growth rate and gross margin) of Automotive Chip industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive Chip industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive Chip industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive Chip industry.

Research Methodology: Global Automotive Chip Market

Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
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