According to IDC's report “Worldwide Semiconductor Automotive Systems and Supply Chains,” the global automotive semiconductor market is expected to see unprecedented growth as the automotive industry moves toward digitalization and intelligence. The global automotive chip market will be approximately $310 billion in 2022, and global shipments of automotive chips are increasing to 58.5 billion units in 2022, up 11.6% year-on-year, according to the report published by the China Business Industry Research Institute (CBIRI).
IDC predicts that demand for semiconductors such as high-performance computing (HPC) chips, image processing units (IPUs), radar chips, and LIDAR sensors will continue to increase as advanced driver assistance systems (ADAS), electric vehicles (EVs), and the Internet of Vehicles (IoV) gain popularity. These technological advancements improve automotive safety and present new growth opportunities for the semiconductor industry. According to IDC, demand for automotive semiconductors will grow significantly in the coming years.
Globally, government restrictions on vehicle emissions and strong support for new energy vehicles have further stimulated market demand for electric and hybrid vehicles, especially in China, Europe, and North America, where stringent environmental standards and policy support are driving the rapid development of the sector.
Figure: Global automotive semiconductor market size forecast (Source: IDC)
According to Adela Guo, Research Director, IDC Asia Pacific, “The global automotive semiconductor market will generate revenues of more than $8.5 billion by 2027, with a compound annual growth rate (CAGR) of 7% between 2023 and 2027. Within the automotive chip market, different segments are growing in size. For example, the market size of self-driving chips grows with the increase in the number of new vehicles each year, and according to the calculation of 18 million new vehicles each year, the market size of self-driving chips is added at about 36 million chips. In addition, the system base chip (SBC) market is also showing a growth trend. According to forecasts, by 2033, the global system base chip market size is expected to reach $62 billion, growing at a CAGR of 8.1%.
Currently, the global automotive chip market is showing a situation of oversupply. In order to cope with the shortage, automotive chip manufacturers have built factories to expand. Meanwhile, China, as one of the world's largest semiconductor markets, has been expanding its market size and improving its automotive chip industry chain.
It is expected that the size of the automotive chip market will continue to maintain the growth trend in the next few years. In particular, with the continuous expansion of the electric vehicle market and the rapid development of intelligent technology, the demand for automotive chips will further increase. At the same time, China's chip industry is also gradually rising, providing strong support for the development of China's automotive chip market.
With the continuous penetration of application scenarios, the maturity of 5G communication technology and the advancement of Telematics, the application of semiconductors in automobiles will be more extensive and profound. In the future, the automotive semiconductor market will make breakthroughs in technological innovation and cost control, and become a key driving force to promote changes in the automotive industry and meet the escalating demand for automobiles in terms of safety, comfort and environmental protection.
