The Automotive IC Market is being driven by Rapid electrification of automobiles
The Automotive IC Market is expected to grow at a CAGR of 10.82% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 23.3 billion. In the automotive industry, the Internet of Things (IoT) is a significant area of investment for companies due to its increasing appeal to buyers and investors. The integration of IoT in automobiles presents substantial growth opportunities. Currently, automakers employ two approaches to implement IoT: embedded and tethered. Embedded systems utilize chipsets and built-in antennas to connect drivers directly to their vehicles, while tethered systems rely on hardware to link drivers to their smartphones. The proliferation of sensors and real-time tracking is fueling the expansion of the global automotive IC market. Applications of IoT in this sector include real-time car telematics tracking, connected vehicle sensors, vehicle location tracking, fuel tracking, vehicle usage analytics, speed control, fleet and driver management, car leasing solutions, and traffic management.
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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.82% |
Market growth 2024-2028 |
USD 23.3 billion |
Market structure |
fragmentation |
YoY growth 2023-2024(%) |
9.51 |
Key countries |
China, US, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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The Automotive IC market is experiencing significant growth driven by the increasing demand for advanced driver-assistance systems (ADAS), electric vehicles (EVs), and automobile automation. This market is witnessing knowledge transfer from the consumer electronics industry, ensuring supply stability and maintaining high-quality standards for brand identity. Foundries and IDMs are at the forefront of this technological advancement, deploying semiconductor elements to meet the stringent safety requirements and regulatory scrutiny. Geopolitical scenarios and market consolidation are shaping the landscape of the Automotive IC industry. The market is witnessing the deployment of electronic elements for lane departure warnings, parking assist, ADAS systems, navigation, infotainment applications, and more. Design in timeframes are becoming increasingly important, with a focus on functionally safe design and zerodefect quality. Memory devices and sensors are essential components of this market, with a growing emphasis on stringent qualification processes to meet safety requirements. The production trends indicate a shift towards the use of ICs for electric vehicles, further fueling the growth of the market. With regulatory scrutiny and technological advancements, the Automotive IC market is poised for continued growth and innovation.
The global automotive components and equipment market encompasses businesses producing parts and accessories for various vehicle types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. According to Technavio, the market size is determined by the consolidated revenue generated by manufacturers of automotive components and equipment. Key growth drivers for the automotive parts and equipment market include the surge in electronic components utilization in automobiles, fueled by the escalating sales of electric vehicles, motorcycles, and passenger cars, resulting in a substantial increase in demand for electronic control units (ECUs) and other electrical components over the past decade. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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