Market Size of Automotive Special Purpose Logic IC Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Special Purpose Logic IC Market Analysis
Automotive Special Purpose Logic IC Market is expected to grow by 3.2% CAGR in the forecast period.
- New cars are being equipped with electronic technologies that improve vehicle performance, provide comfort and convenience, and warn, detect, and take remedial action to keep drivers safe and alert. The automotive IC industry is predicted to grow due to consumer demand and government mandates for many of these new systems, as well as growing pricing for many of the IC components used in them.
- The global special purpose logic IC market is growing due to the increasing use of logic ICs in industries other than electronics. Leading automotive firms such as Audi and Toyota are progressively requesting and offering electronic devices incorporated into their vehicles, moving the global automotive special purpose logic IC market forward.
- All new cars come with a slew of microchips aboard to control everything from window motors to navigation systems; however, the auto industry has been hammered hard by chip shortages, which have resulted in production delays. This means fewer new cars are available for eager buyers.
- Chips are now as important as steel, aluminum, and plastic in the production of automobiles. Every car includes at least a couple of dozen microchips that handle everything from the infotainment panels to the fuel management and stability control systems. Luxury vehicles and vehicles with high-tech features such as enhanced safety systems and driver assistance features may contain 100 or more CPUs.
- The COVID-19 pandemic has had a rapid and devastating impact on the global automotive sector. Chinese parts shipments are being disrupted, large-scale manufacturing disruptions are occurring across Europe, and assembly factories in the United States are closing. The pandemic also resulted in global chip and semiconductor shortage, disruption in the supply chain, shortage of raw material, delay in completion of fabrication plants due to imposed restrictions, and lockdowns resulting in a shortage in automotive chips and also increased the price of the systems.
Automotive Special Purpose Logic IC Industry Segmentation
Special-purpose logic is a mix of distinct semiconductor types for certain markets, including ASICS, ASSPs, SoCs, and core-based ICs. Semiconductors for Special Purpose Logic are highly integrated chips that are mass-produced as standard or semi-standard products. Automotive Special Purpose Logic IC Market is segmented by Geography.
Automotive Special Purpose Logic IC Market Size Summary
The Automotive Special Purpose Logic IC Market is poised for growth, driven by the increasing integration of electronic technologies in vehicles to enhance performance, comfort, and safety. The demand for these integrated circuits is bolstered by consumer preferences and regulatory requirements, alongside rising costs of IC components. The market is further propelled by the expanding use of logic ICs beyond the electronics sector, with major automotive players like Audi and Toyota incorporating advanced electronic systems into their vehicles. Despite challenges such as chip shortages causing production delays, the automotive industry recognizes the critical role of chips, akin to traditional materials like steel and aluminum, in modern vehicle manufacturing. The COVID-19 pandemic exacerbated supply chain disruptions, highlighting the dependency on a steady supply of automotive chips, which are essential for various vehicle functions from infotainment to safety systems.
The market's expansion is also fueled by the surge in electric vehicle (EV) sales, driven by heightened environmental awareness and rising fuel costs. Initiatives like the Electric Vehicles Initiative (EVI) aim to accelerate EV adoption, further stimulating demand for communication logic ICs. The Asia-Pacific region, home to major automotive manufacturers, plays a significant role in this growth, with countries like China, Japan, and India contributing to the robust automotive sector. China's strategic efforts to bolster its semiconductor industry, including partnerships and regulatory support, aim to strengthen its position in the global market. The competitive landscape of the Automotive Special Purpose Logic IC Market is marked by innovation, mergers, and acquisitions, with key players like STMicroelectronics, Renesas Electronics, and NXP Semiconductors leading advancements in automotive processing technologies.
Automotive Special Purpose Logic IC Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Value Chain / Supply Chain Analysis
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1.3 Porters Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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Automotive Special Purpose Logic IC Market Size FAQs
What is the current Automotive Special Purpose Logic IC Market size?
The Automotive Special Purpose Logic IC Market is projected to register a CAGR of 3.20% during the forecast period (2024-2029)
Who are the key players in Automotive Special Purpose Logic IC Market?
STMicroelectronics, Renesas Electronics, Broadcom Inc., Qualcomm Inc. and NXP Semiconductors are the major companies operating in the Automotive Special Purpose Logic IC Market.
