The Global Automotive Chip market is expected to reach USD 60.82 Billion by 2030, at a CAGR of 10.8% from 2021 to 2030. The growth of the automotive chip market is driven by the increasing demand for fuel-efficient, safe, secure, and connected cars.
The increasing adoption of automotive electronics and stringent emission norms are expected to drive the demand for automotive chips.
The report also states that the increasing demand for premium vehicles with advanced safety features and the rising trend of autonomous vehicles are expected to foster the growth of the automotive chip market. The increasing focus on advanced driver assistance systems (ADAS) and the increasing demand for connected cars are also expected to drive the market.
The report further mentions that the powertrain system is expected to be the largest application segment in the automotive chip market during the forecast period. The increasing demand for fuel-efficient vehicles and the growing adoption of advanced powertrain systems with electronic controls are expected to drive the demand for powertrain systems.
The report also states that the Asia Pacific region is expected to be the largest market for automotive chips over the forecast period. The increasing production of vehicles in the region, coupled with the presence of prominent automotive chip manufacturers in the region, is expected to drive the market in the Asia Pacific region.
The report also mentions that the key players in the automotive chip market are DENSO Corporation, NXP Semiconductors, Infineon Technologies AG, Texas Instruments, Robert Bosch GmbH, STMicroelectronics N.V., ON Semiconductor, Renesas Electronics Corporation, Analog Devices, Inc., and Autotalks Ltd.
Restraints of the Automotive Chip Market
- High Cost of Automotive Chips: Automotive chips are expensive, which can limit their adoption by consumers.
- Lack of Standardization: Due to the lack of standardization in automotive chips, different manufacturers have different chips for different vehicles, making it difficult for consumers to find a suitable chip for their vehicle.
- Intellectual Property Issues: Automotive chip manufacturers must protect their intellectual property from copying, which can be difficult and costly.
- Short Lifecycle: Automotive chips have a limited lifespan and need to be replaced regularly, which can be costly and inconvenient.
- Complexity: Automotive chips are complex and require specialized knowledge to use and maintain. This can be a barrier to entry for some consumers.