According to a new market report published by Lucintel, the future of the global automotive semiconductor market looks good with opportunities in the passenger car and commercial vehicle segments. The global automotive semiconductor market is expected to reach an estimated $45.9 billion by 2022 and it is forecast to grow at a CAGR of 6.4% from 2017 to 2022. The major drivers of growth for this market are increasing vehicle production, increasing semiconductor content per vehicle, growing demand for advanced vehicle safety and comfort systems, and growing government regulations regarding CO2 emissions.
In this market, microcontrollers, integrated circuits, sensors, and discrete power are some of the major segments of automotive semiconductors. On the basis of our comprehensive research, Lucintel forecasts that the sensor and discrete power segments are expected to show above average growth during the forecast period.
Within the global automotive semiconductor market, the integrated circuits segment is expected to remain the largest market. The integrated circuit is an essential component of electronic control units. The ICs interact with one another in the system and ensure movement, information, and safety, which would spur growth for this segment over the forecast period.
Asia Pacific is expected to remain the largest market due to high vehicle production, improvement in the economic conditions, and increasing investment by the industry players within the APAC region.
Asia Pacific and the Rest of the World are expected to witness significant growth over the forecast period because of rapidly increasing demand for semiconductors in small, compact, and mid-size cars.
For business expansion, this report suggests innovation and new product development, to produce power semiconductors which increase passenger safety, comfort, and convenience. The report further suggests the development of partnerships with customers to create win-win situations and the development of low-cost solutions for customers.