According to IDC, top automotive semiconductor vendors are competing for advantage through multi-dimensional strategies.
BEIJING, August 19, 2024 — The global automotive semiconductor market is expected to exceed $88 billion by 2027, driven by rising demand for high-performance computing (HPC) chips, graphics processing units (GPUs), radar chips, and laser sensors. This growth is driven by the increasing adoption of advanced driver-assistance systems (ADAS), electric vehicles (EVs), and Internet of Vehicles (IoV), creating new growth opportunities for the automotive semiconductor sector, according to a recent report, “Global Competitive Landscape of Automotive Semiconductors 2023.”
IDC predicts that semiconductor companies will become increasingly important to the automotive supply chain as the value of semiconductors per vehicle continues to rise.
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Leading semiconductor companies such as Infineon, NXP, STMicroelectronics, Texas Instruments (TI), and Renesas Electronics are investing heavily in developing solutions for next-generation microcontrollers, systems-on-chips (SoCs), and high-resolution radars. To meet the demands of high-volume semiconductor production, higher performance, and improved safety in automobiles, they are continuously enhancing ADAS, autonomous driving systems, cockpit and networking capabilities, and integrating complex electronic control units (ECUs) and sensor fusion technologies.
According to a recent report by International Data Corporation (IDC) titled “Global Competitive Landscape of Automotive Semiconductors in 2023” (Document No. US50917724, July 2024), the top five vendors in the automotive semiconductor market will capture more than 50% of the market share in 2023. Infineon led the market with a 13.9% share, followed by NXP and STMicroelectronics with 10.8% and 10.4% market shares, respectively. TI and Renesas Electronics also performed well, accounting for 8.6% and 6.8% of the total share, respectively. The market situation is as follows:
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• Through continuous technological innovation, strategic acquisitions, a robust supply system and close cooperation with automotive OEMs, Infineon has consistently increased its market position in the areas of power electronics and advanced control systems, establishing itself as a leader in the power semiconductor market.
• NXP has deep expertise in V2X (Vehicle-to-Everything) communications and security technologies and is continuously innovating and improving. Through close collaboration with automotive OEMs and Tier 1 suppliers, NXP is a pioneer in this field as a supplier of comprehensive product solutions.
• STMicroelectronics leverages its expertise in microelectromechanical systems (MEMS) and power semiconductors to provide innovative solutions to the automotive industry.
• TI has a wide range of analog chips and embedded solutions to provide a product portfolio to meet the needs of its customers, and it also has a strong supply chain management and product quality control system to support it.
• Renesas Electronics offers a comprehensive collection of microprocessors and SoCs to ensure functional safety and reliability, and maintains its industry-leading position through strategic acquisitions and collaborations.
Advancements in the automotive sector are driving demand for high-performance and safety semiconductors, and as EV and autonomous driving technologies evolve, these semiconductor companies will continue to play a key role in the global automotive semiconductor market.
Adela Guo, research director, Asia Pacific, IDC, said: “The common strengths shared by these leading semiconductor vendors are significant R&D investments and strong technology leadership, comprehensive product portfolios, solid strategic partnerships, efficient global operations, and secure and reliable product performance. These characteristics give vendors a competitive advantage and enable them to drive sustainable development towards electrification, networking, and intelligence in the automotive sector.”
For media inquiries, please contact Angel Wu at anwu@idc.com or Miguel Carreon at mcarreon@idc.com.
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About IDC
International Data Corporation (IDC) is the world’s leading provider of market intelligence, advisory services, and events for the information technology, communications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC’s analysis and insights help IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), a leading global technology media, data, and marketing services company. For more information about IDC, visit www.idc.com. Follow IDC on Twitter @IDCAP and on LinkedIn. Subscribe to the IDC Blog for industry news and insights.
