Automotive Chip Market to Reach £70 Billion by 2027: Top 5 Vendors Lead the Way

The global automotive semiconductor market is set to exceed £70 billion by 2027, driven by the soaring demand for high-performance computing (HPC) chips, graphics processing units (GPUs), radar chips, and laser sensors. This growth is fuelled by the increasing adoption of advanced driver assistance systems (ADAS), electric vehicles (EVs), and the Internet of Vehicles (IoV), creating exciting new opportunities for the automotive semiconductor sector. This is according to a recent report titled “2023 Worldwide Competitive Landscape of Automotive Semiconductor”, published by International Data Corporation (IDC).

IDC predicts that as the value of semiconductors per vehicle continues to climb, semiconductor companies will become increasingly vital to the automotive supply chain.

Leading semiconductor companies such as Infineon, NXP, STMicroelectronics, Texas Instruments (TI), and Renesas Electronics are pouring significant resources into developing solutions for next-generation microcontrollers, system-on-a-chip (SoC), and high-resolution radars. To meet the automotive industry's need for higher volume, performance, and safety of semiconductors, these companies are constantly enhancing ADAS, autonomous driving systems, cockpit and networking features, and integrating complex electronic control units (ECUs) and sensor fusion technology.

According to IDC's recent report, the top five vendors in the automotive semiconductor market captured over 50% of the market share in 2023. Infineon led the market with a share of 13.9%, followed by NXP and STMicroelectronics, holding a market share of 10.8% and 10.4%, respectively. TI and Renesas Electronics also demonstrated strong performance, accounting for 8.6% and 6.8%, respectively, of the total share. The market landscape is as follows:

Infineon: Through ongoing technological innovation, strategic acquisitions, robust supply systems, and close collaboration with automotive original equipment manufacturers (OEMs), Infineon has consistently strengthened its market position in the field of power electronics and advanced control systems, establishing itself as a leader in the power semiconductor market.

NXP: NXP possesses deep expertise in vehicle-to-everything (V2X) communication and security technologies and continually innovates and iterates. It is a frontrunner in this field as a supplier of comprehensive product solutions through close cooperation with automotive OEMs and Tier 1 suppliers.

STMicroelectronics: STMicroelectronics offers innovative solutions for the automotive industry by virtue of its specialisation in micro-electromechanical systems (MEMS) and power semiconductors.

Texas Instruments (TI): With a wide range of analog chips and embedded solutions, TI delivers product portfolios that meet customer needs. Meanwhile, it has a robust supply chain management and product quality management system to support it.

Renesas Electronics: Renesas Electronics offers a comprehensive collection of microprocessors and SoCs to ensure functional safety and reliability. Meanwhile, it employs strategic acquisitions and cooperation to maintain its leading edge in the industry.

Advancements in the automotive sector have driven the demand for high-performance, high-safety semiconductors. As EVs and autonomous driving technologies evolve, these semiconductor companies will continue to play a crucial role in the global automotive semiconductor market.

Adela Guo, Research Director at IDC Asia Pacific, stated: “The common strengths of these leading semiconductor vendors include substantial R&D investment and strong technological leadership, comprehensive product portfolios, solid strategic partnerships, efficient global operations, as well as safe and reliable product performance. These features empower them to stay ahead of the competition and propel the sustainable development of the automotive sector towards electrification, networking, and intelligence.”

The growth of the automotive semiconductor market is a testament to the rapid advancements in the automotive industry. As vehicles become increasingly sophisticated, the demand for powerful, reliable, and safe semiconductors will only continue to grow. The top five vendors in this market are well-positioned to capitalize on this trend and continue to lead the way in innovation and development.