Automotive SoC Market to Surpass Valuation of US$ 77.14 Bn by 2031: Transparency Market Research

Automotive SoC Market: Introduction

According to the report, the global automotive SoC market is projected to surpass US$ 77.14 Bn by 2031, expanding at a CAGR of 10.91% during the forecast period. A System on a Chip, also known as a SoC, is an integrated circuit, or an IC, that integrates an entire electronic or computer system onto a single substrate. It is, exactly as its name suggests, an entire system on a single chip. A central processor unit, input and output ports, internal memory, and analogue input and output blocks are just a few of the components that a SoC tries to contain within itself. Signal processing, wireless communication, artificial intelligence, and other operations can be performed depending on the type of system that has been shrunk to the size of a chip.

More tightly integrated computer system designs improve performance and minimize power consumption and the semiconductor die area required for an equivalent design made of discrete modules, at the expense of component replaceability.

A major shift in consumer preferences toward connected and increasingly autonomous vehicles across the world is estimated to propel the global automotive SoC market during the forecast period. 

Increasing preference for vehicle comfort, rising demand for In-vehicle Infotainment and telematics systems, application of IoT in automobiles, and growing trend to remotely monitor commercial vehicle fleets for safety, driver performance, efficiency, and predictive maintenance are other major factors estimated to propel the global automotive SoC market during the forecast period.

Impact of COVID-19 on Automotive SoC Market

The COVID-19 pandemic caused a negative impact on several industries, including automotive, which led to the shutdown of multiple companies. Several automotive companies slashed their investment budget for R&D and reduced production capacities, even closed down some of their manufacturing facilities, which, in turn, hampered the automotive SoC market.

Expansion of Automotive SoC Market

The demand for electric vehicles is being witnessed globally, especially in major developing and developed countries, due to pollution caused by greenhouse gas emissions (GHG), and majority of GHG emissions are primarily attributable to the use of IC engine vehicles. The adoption of electric mobility solutions would not only repel the usage of conventional IC engine, but it would also boost the requirement for various microcontrollers and microprocessor units in the drivetrain of the electric vehicle.

For instance, the electric vehicle drivetrain is majorly regulated by the “EVM (Electric Vehicle Motor) controller” unit, which is a set or a combination of intelligent sensors, processors, and memory storage. EVM controller is considered to be the “brain” of the electric drivetrain; it controls the varying energy consumption from the battery and restores the energy back to the battery upon braking. Thus, importance of the EVM controllers is expected to drive the market for automotive SoCs across the globe.

The rise in demand for connected, autonomous, and semi-autonomous vehicles is due to the increase in adoption of ADAS (Advanced Driving Assist System) technology in new premium and luxury vehicles. The ADAS system is utilized a set of various semiconductor chips for gathering and processing data. Increasing road safety concerns is boosting the introduction of ADAS and consequently, driving the demand for SoCs across the globe. Infotainment and IoT connected applications are taking their own place in the vehicle interior system in line to the changed consumer behavior - demanding handy data and entertainment. This, in turn, is propelling the automotive SoC market.

Various marketing sectors have suffered significant losses as a result of the global COVID-19 outbreak. The global vehicle market was the most notable of these. The market has suffered a significant loss due to lockdowns, restrictions on global travel, trade wars, and numerous other factors. The global pandemic disrupted the supply chain of the global market for automotive SoC, which has led to an abrupt halt in investment.

Regional Analysis of Automotive SoC Market

In terms of region, the global automotive SoC market has been segregated into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Of these, North America, Europe, and Asia Pacific are expected to account for a significant share of the global automotive SoC market. Asia Pacific is a prominent market, owing to the significant expansion of the automotive industry in Japan, China, South Korea, and India. Furthermore, the region also leads the global market for automotive SoC owing to a rise in the demand for connected and autonomous vehicles in various parts of Asia Pacific.

Middle East & Africa and South America are expected to be emerging regions of the global automotive SoC market during the forecast period. This is primarily due to the emergence of the automobile industry in the past few years. Furthermore, the market in South America is witnessing expansion owing to a rise in vehicle sales and the presence of large automobile manufacturing plants in the region.

Automotive SoC Market Players

Prominent players operating for automotive SoC market include Infineon Technologies AG, Intel Corporation, NVIDIA Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Telechips Inc., Renesas Electronics Corporation, STMicroelectronics N.V, NEC Corporation, ON Semiconductor Corporation, Marvell Technology, Robert Bosch GmbH, Denso Corporation, Cadence design Systems Inc., Microchip Technology Inc., and NXP Semiconductors N.V.

Global Automotive SoC Market: Segmentation

  • Automotive SoC Market, by Vehicle Type
    • Passenger Vehicles
    • Light Commercial Vehicles
    • Trucks
    • Buses & Coaches
  • Automotive SoC Market, by Component
    • Analog ICs
    • Microcontrollers
    • Logic ICs
    • Memory
    • ECU
    • Others
  • Automotive SoC Market, by Application Type
    • Advanced Driver Assist System (ADAS)
    • In-vehicle Infotainment
    • Cockpit & Dashboard
    • Others
  • Automotive SoC Market, by Region
    • North America
    • Europe
    • Asia Pacific
    • Middle East & Africa
    • South America

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