The global automotive system-on-chip (SoC) market is on the brink of reaching a substantial valuation, projected to reach US$ 8,141.9 million by 2023, according insights are based on a report on the Automotive SoC Market by Future Market Insights. The growth is primarily driven by the burgeoning interest and insights surrounding the automotive SoC market. The trend is expected to open doors to new opportunities within the market, with a projected compound annual growth rate (CAGR) of 7.9% from 2023 to 2033. By 2033, the market is poised to soar to an estimated total valuation of around US$38,925 million.
Automobile manufacturers have harnessed the power of SoCs to create advanced and automated vehicle systems. The technological leap has led to a remarkable enhancement in the overall driving experience, aligning vehicles with the latest technological advancements.
India and China, as highly populous developing nations, are set to have a significant impact on automotive SoC production due to the increasing demand for superior driving experiences and the myriad advantages these SoCs offer.
The global automotive SoC market is poised for substantial growth, primarily propelled by the rising integration of ADAS and infotainment systems in smart, self-driving and semi-autonomous vehicles. Car manufacturers worldwide are embracing advanced SoCs to transform both vehicle safety and the driving experience.
SoCs in the automotive sector have revolutionized vehicle functionality, powering ADAS features like adaptive cruise control, lane-keeping assist and automatic emergency braking, elevating safety, and driving quality.
Advanced infotainment systems now offer features like voice recognition, HD displays, and seamless connectivity, driving the need for potent SoCs to handle intricate multimedia functions.
The automotive SoC markets demand in the U.S. is on the rise as automotive manufacturers continue to integrate advanced technologies into their vehicles to enhance user experience and safety.
- The market valuation in 2022 was US$17,066.7
- Based on vehicle type, passenger vehicles are expected to dominate at a market share of 63.4% by 2033
- Based on application type, Infotainment Systems SoCs will register at a market share of 43.5% by 2033.
- The automotive SoC market size expanded at 4.68% CAGR between 2018 and 2022
- Japan is estimated to expand at a market share of 6.5% in 2023
- Germany experiences significant growth, with a projected value share of 68.5% in 2023.
“The advancement and validation of autonomous vehicles and semi-autonomous cars are significantly gaining momentum within the automotive sector and is considered one of the key drivers of the automotive SoC market,” said Sudip Saha, managing director and co-founder at Future Market Insights.
The automotive SoC industry boasts a substantial array of market participants. Research and development play a pivotal role among these players, primarily focusing on the introduction of eco-friendly product lines as a core aspect of their manufacturing endeavors. Furthermore, they employ various expansion strategies, including collaborations, mergers and acquisitions, and diligent exploration of regulatory approvals to bolster their market presence. Some of the key developments are discussed below.
- Renesas introduced its latest R-Car V3H SoC, designed to deliver exceptional computer vision and artificial intelligence processing capabilities with unparalleled energy efficiency.
- The SoC was specifically tailored for automotive front cameras, catering to the needs of Level 3 (conditional automation) and Level 4 (high automation) autonomous vehicles in mass production.
- ON Semiconductor had formed a strategic partnership with Audi AG, with a primary focus on driving innovation and ensuring top-tier quality. The collaboration aimed to provide Audi with cutting-edge technological solutions while bolstering ON Semiconductor's market presence and influence.
- Intel CEO Pat Gelsinger coined a new term at the Intel Innovation event in San Jose, calling our current era of AI-fueled growth the "Siliconomy." This denotes the economic power of silicon and software.
- Intel is poised to unleash America’s innovation boom, fueled by the CHIPS Act.
These insights are based on a report on the Automotive SoC Market by Future Market Insights.