It is expected that the automotive semiconductor market will reach $100 billion by 2029

ADAS and safety are projected to become the fastest-growing sectors with a CAGR (Compound Annual Growth Rate) of 14% from 2023 to 2029‌. This rapid growth is fueled by the automotive industry's increasing emphasis on driving safety and intelligent assistive driving features. As technology continues to advance, ADAS systems are gradually becoming standard in vehicles, ranging from simple reverse radar and cruise control to more advanced functions such as automatic emergency braking and lane-keeping assistance. These features all rely on cutting-edge semiconductor technology, making the ADAS and safety sectors stand out in the automotive chip semiconductor market as a robust engine for growth‌.

It's important to note that this growth data excludes electrification, which is the second-largest market driver for semiconductors. During the same period, the CAGR for electrification is expected to exceed 13%. Although the pace of electrification in Europe has slowed compared to the previous year, the Chinese market remains highly active in this area. As one of the best automotive markets globally, China's development in the field of new energy vehicles is thriving. Government policy support, heightened consumer environmental awareness, and active investment from numerous automakers are all accelerating China's automotive electrification process. From electric vehicle battery technology research and development, charging infrastructure construction, to vehicle manufacturing and sales, every aspect is closely linked to semiconductor technology, providing solid support for the growth of the automotive semiconductor market‌.

Dr. Yang Yu, the chief analyst of the automotive semiconductor team at Yole Group, stated, "The slow growth of the global automotive market is posing more challenges for some Original Equipment Manufacturers (OEMs) and suppliers during their transformation. However, based on mid-term development trends, the semiconductor device market is still expected to achieve significant growth of 11%, reaching nearly $100 billion in 2029." This viewpoint clearly indicates that despite the overall challenges faced by the automotive market, semiconductor technology, as the core driving force for automotive industry upgrades, still has broad development prospects‌.

Yole Group recently released the 2024 edition of "Semiconductor Trends in Automotive." This new report provides an in-depth analysis of the evolving automotive industry ecosystem and supply chain, comprehensively summarizing current technological trends, and offering market value, shipment volume, and wafer predictions from 2019 to 2029. This report is a valuable reference for industry professionals, investors, and those interested in the automotive semiconductor sector, helping them gain insights into market dynamics and future trends‌.

This year, the "Triple-C" model, a professional tool designed to help OEMs develop their own semiconductor strategies, has gained recognition from more companies, including the top 20 OEM groups globally, as well as leading Chinese electric vehicle startups such as NIO, XPeng Motors, and Li Auto. The 2024 analysis report highlights the significant diversity within this ecosystem. On average, OEMs are becoming more deeply involved in the semiconductor industry. They are no longer solely reliant on traditional suppliers but are actively exploring cooperation models with semiconductor companies. Some OEMs have even ventured into semiconductor research and development and production to enhance their competitiveness in the industry chain. Another noteworthy trend is that Chinese OEMs are making broader investments in various types of chips and participating more deeply in the upstream supply chain. Power modules, which are crucial for enabling electric vehicles, are a prime example. Almost all Chinese OEMs have invested in this area in various forms. In addition to power modules, high-performance processors and MCUs are also highly favored by OEMs. High-performance processors provide powerful computing capabilities for vehicle infotainment systems, enabling features such as voice recognition, intelligent navigation, and vehicle-to-network connectivity. MCUs play a core role in various electronic control units (ECUs) of vehicles, from engine management and body control to safety systems, all relying on the precise control of MCUs‌.