During the forecast period of 2021-2026, the global automotive semiconductor industry was valued at USD 37. 41 billion in 2020 and is likely to reach USD 101.28 billion by 2026.
FREMONT, CA: With the introduction of numerous technologies in the industry such as 3D mapping applications, the emergence of electric vehicles and automobile automation, the automotive industry has undergone a rapid change over the past few years. This in turn has boosted the demand for advanced semiconductor technologies like sensors, memory devices and integrated circuits.
Automobile electrification and automation are two major industry drivers that have resulted in a surge in semiconductor wafer consumption. Semiconductor ICs with various functionalities are deployed in automotive products to expand navigation control, infotainment systems and collision detection systems.
Advanced technology, such as matrix LED lighting, upgraded LiDAR sensors, and ADAS systems, have been increasingly implemented into mass production of cars in recent years. Improvements have also been made in 3D mapping applications, electric vehicle batteries, and augmented-reality technology such as head-up displays. In addition, 5G networks have enabled the sector's next generation of mobility solutions. Advanced Driver Assistance Systems sales are likely to enhance in the future thanks to the increasing demand for safety features that are designed to prevent collisions and accidents by providing technologies that alert drivers regarding potential problems.
Moreover, connected vehicles have become the key drivers for consumers that are accustomed to the great user experiences. As a result of these expectations, infotainment systems have evolved from bulky, purpose-built devices to streamlined, networked, upgradeable, and integrated platforms, requiring the latest technology-featured semiconductors. Thus, the semiconductor industry is expected to benefit from the future of linked and autonomous driving.
Besides, the automotive industry encounters a number of obstacles, including decreased purchasing power due to the pandemic, improvements to charging infrastructure and consumer expectations for future technological advancements to lower car prices and increase range. According to the Korea Automotive Technology Institute the global shortage of automotive semiconductors which began at the end of 2020 is likely to last through the first part of 2022.