Increasing safety systems, not only passive safety e.g. seat belts, but mainly by electronic such as air bags, anti-lock braking systems (ABS), electronic stability control (ECS), blind spot detection (BSD), adaptive cruise control (ACC) and lane change assist (LCA) among others. These all intelligent functions mentioned above require a semiconductor device to perform their function. The main function of a semiconductor is to conduct electricity easily in one direction among other more specific functions.
Regulations regarding safety and emission will drive the market for connected components and devices in the vehicle to ensure monitoring and reporting of vehicle emission complying to the regulations set by the government. They require increasingly powerful semiconductors to ensure that vehicles’ performance is in compliance. Thus the above reason in turn is helping the market for automotive semiconductors to grow during the forecasted period from 2016 – 2024.
Moreover vehicle standards such as New Car Assessment program (NCAP) that gives safety ratings to new vehicles manufactured as star-ratings, is boosting the car manufacturers to provide more and more electronic components to provide more safety and security systems for the vehicle. Obtaining the highest level of five star rating can act as a strong selling point for the vehicles. Its achievement relies on complex and sophisticated assisted driving systems that require significant semiconductor content for these systems to function.
The major drivers of automotive semiconductors market are growing numbers of electronic devices in a car to add passenger safety features and driver assistance systems. Even connected cars concept and other electronic devices present in the car that need to coordinate with the electronic control unit (ECU) are helping the growth of automotive semiconductors market during the forecasted period.
For the purpose of detailed analysis, the global automotive semiconductor market can be segmented on the basis of vehicle type, component, application and geography. Based on vehicle type, the market can be bifurcated into passenger car, light commercial vehicle (LCV), heavy commercial vehicle (HCV) and hybrid vehicle. The passenger car segment can be further classified into compact and sub-compact vehicle, sedan, and SUV among others. On the other hand, various components used in automotive semiconductor includes processors, analog ICs, sensors, discrete power and memory. In automotive, different types of semiconductors also finds it application in telematics & infotainment, safety and powertrain. In addition, information regarding current market situation as well as future predictive growth trend of various above mentioned segments is also provided across different regions such as North America, Europe, Asia Pacific, Middle-East and Africa (MEA) and Latin America.
Based on component, the global semiconductor vehicle market is majorly driven by the discrete power segment during the forecast period from 2016 to 2024. Increasing demand for electrification of the major automobile applications such as powertrain and ABS among others is the most important factor anticipated to accelerate the demand of power components such as IGBT and MOSFET.
Again by application, telematics & infotainment segment held the largest market share in 2015. Increasing competition among various vehicle manufacturers to offer better comfort and convenience to their customers is encouraging different automobile manufacturers to use various semiconductor components for telematics and infotainment applications.
Geographically, Asia Pacific region is predicted to dominate the automotive semiconductor market during the forecast period from 2016 to 2024. Rapid technological advancement taking place in the automotive sector in Asia Pacific region in respect of increased safety, reduced fuel consumption and powertrain applications is the primary factor anticipated to drive the demand of semiconductors used in automotive.
Some of the major players operating in the automotive semiconductor market includes Infineon technologies (Germany), NXP Semiconductors N.V. (Netherlands.), Texas Instruments Inc. (U.S.), Toshiba Corporation (Japan.), Robert Bosch GmbH (Germany) and ON Semiconductor Corp. (U.S.) among others.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.