The semiconductor market globally is seeing an increase in sales and revenue due to increasing demand for semiconductor supplies by different industries. According to research by OMR, the Semiconductor market is forecast to grow by 7% in 2023-30. Every sector such as electronics, information and communication, automotive and many more to improve performance and productivity requires semiconductors. Various research has shown that technologies like AI, IoT and Big Data are using semiconductors to improve the profitability, productivity and performance of the product. Automotive Industry is benefitting immensely while integrating with the semiconductor market.
Automotive Semiconductor for New ICE Age Vehicles
Semiconductor in the automotive industry has been used widely for different purposes such as to provide advanced driver assistance systems, infotainment systems, microprocessors, switches, sensors and many more. Since cars are becoming super-age computers on the wheel, the requirements for semiconductors have increased. The application of semiconductors in the automotive industry is not just limited to cars but with modern bikes and scooters also started for GPS, music, in-build mics and many more features. Custom research can be done to understand the benefits and issues with automotive semiconductors for successful new ICE-age vehicle processing.
Benefits of Integrating the Semiconductor Market with the Automotive Industry
The four key trends which are autonomy, electrification, mobility and connectivity as a service known as MaaS will increase the usage of semiconductors in the Automotive Industry. According to research conducted by OMR, the global automotive chips market anticipated growth of CAGR of 14.9% during 2022-28. The reason behind the same is:
Autonomy Vehicles are coming
• Tesla brought a revolution by launching its first-ever autopilot car in October 2015 opening the door for a whole new age vehicle revolution. Tesla is expected to launch the Model 3 SUV in November.
• At the beginning of January 2023, Mercedes beat Tesla and became the first-ever Level-3 Autonomous car.
• In September 2021, Honda Motors announced the start of testing for autonomous vehicles under MaaS services in Japan.
• In September 2021, General Motors announced an investment in a startup in the US named Oculii for the radar sensor for their autonomous cars.
Changing Customer Preference to Electrification of Vehicles
Customers are choosing EVs (electric vehicles) over oil vehicles not just because of sustainability and cost-saving feature but also because of various features like in-build Alexa, music, mic and voice command features. All these features require the command of semiconductors which makes it essential for EVs. This growth of sales in EVs would not have been possible without semiconductor technology. According to research by OMR, the EV market is forecasted to grow by a CAGR of 21.7% in 2023-30.
• Tesla Model Y is leading the EV cars and become the first bestseller EV car in the world.
• Mercedes Benz is expecting 25% EV sales in total sales by 2027 by planning to include more EVs in their current portfolio.
Need to Increase Smart Vehicle
Semiconductors in the new ICE age automotive industry are not just limited to combustion but have moved towards chips because of the increasing need for a smart vehicle. This opens the way for custom research to identify the issues and resolve them in smart vehicles.
• The trend shows that building custom semiconductors for the need of the automotive industry has improved their performance.
• Vehicles now have auto-pilot, voice command, and assistance mode to make them smart for the new ICE-age automotive industry.
• MediaTech has collaborated with Nvidia to make the vehicle more smart and secure from cyber threats with the help of GPU and AI chipsets.
The needs of the new-age automotive industry have increased the importance of the integration of the semiconductor market. Various research on the semiconductor market by OMR has shown that different semiconductor technologies are useful in the different parts of the automotive. The market yet is wide open to integrate both of them and bring innovation which is why it is required to conduct market research, custom to the brand and product.