Automotive Chips Market: Current Analysis and Forecast (2021-2027)

Report Description

Automotive Chips Market is anticipated display a CAGR of around 10% over the forecast period (2021-2027). Increasing vehicle production, which in turn, is leading to the rise in demand for automotive chips coupled with rising trend of vehicle electrification and growing demand for advanced safety, convenience, and comfort systems are some of the key factors driving the growth of automotive chips market.

The COVID-19 pandemic have had a severe impact on the entire automotive industry. This has resulted in disruptions in the supply of automotive components due to lockdowns imposed by governments. This scenario negatively affected the automotive chips market, as the growth of this market is directly related to the production of vehicles. Moreover, the huge increase in demand for computers, mobile phones and other consumer electronics during the COVID-19 pandemic surpassed the availability of semiconductors, making them very scarce. On top of that, supply chains are still being disrupted by national bottlenecks and coronavirus-related restrictions in factories that produce microchips.

Insights Presented in the Report

“Amongst Component Type, Microcontrollers & microprocessors category to witness significant growth during the forecast perriod”

Based on component type, the market is categorized into logic ICs, analog ICs, microcontrollers & microprocessors, and memory. Microcontrollers & microprocessors category is expected to witness significant growth during the forecast period. Microcontrollers in automobiles are present in large equipment to small devices and are used to manage air conditioners, power windows, braking, headlights, and steering. Thus, with continuous research & development and launch of technologically advanced systems by automotive OEMs is to provide a boost to the market during 2021–2027.

“Amongst Vehicle Type, Passenger vehicles category held largest market share in 2020    ”

Based on vehicle type, the market is bifurcated into passenger vehicle and commercial vehicle. Owing to high production volume the passenger vehicle segment dominate the market and is expected to maintain its dominance throughout the forecast period. Furthermore, major automotive OEMs have become more competitive in terms of offering advance products and systems in vehicles. In addition, OEMs are focusing on providing enhanced fuel systems with advance electronics to comply with emissions norms and other regulations across different countries.

“Asia-Pacific will Dominate the Market During the Forecast Period”

For a better understanding of the market adoption of Automotive Chips, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of Asia-Pacific), and Rest of World. In 2020, APAC region held the highest market share in the global Automotive Chips market. Some of the major players operating in the market Robert Bosch GmbH, Microchip Technology Incorporated, Texas Instruments Incorporated, NXP Semiconductors, Infineon Technologies AG, Micron Technology Inc., NVIDIA CORPORATION, STMicroelectronics N.V., Renesas Electronics Corporation, and Maxim Integrated Products Inc.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

Customization Options:

The Automotive Chips Market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

You can also purchase parts of this report. Do you want to check out a section wise
price list?

Get in touch with team

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Automotive Chips Market were the three major steps undertaken to create and analyze the demand and sales of Automotive Chips across major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Automotive Chips through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Automotive Chips, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are component type, application type, and vehicle type. Further regional level analyses were conducted to evaluate the overall demand of Automotive Chips in global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing vehicle ownership and technological advancement in the healthcare sector etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and sub segments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand of Automotive Chips across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Automotive Chips Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Automotive Chips market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of product, distribution channel, and regions.

The main objective of the Automotive Chips Market Study

The current & future market trends of the Automotive Chips Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Automotive Chips in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include component type, application type, vehicle type, and regions
• Defined analysis of the regulatory framework for the Automotive Chips industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Analyze the current and forecast market size of the Automotive Chips across the globe. Major regions analyzed in the report include North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Define and analyze the competitive landscape of the Automotive Chips sector and the growth strategies adopted by the market players to sustain in the fast-growing market

Deep dive regional level analysis of the industry