“Driving the Future: The Dynamic Intersection of Automotive and Semiconductor Industries”
The evolution of modern cars has been nothing short of remarkable, with cutting-edge technologies that were once confined to the realm of science fiction now becoming standard features. From centralized touch screen-enabled infotainment systems to smart-phone-controlled car functionalities, the increasing digitalization and connectivity between vehicles and drivers are powered by the integration of semiconductors in today’s automobiles.
Collaboration between Automotive and Semiconductor Industries:
In the pursuit of innovation and market growth, the Semiconductor Industry Association recently organized a conference that shed light on the collaborative efforts between the automotive and chip industries. This symbiotic relationship is instrumental in driving technological advancements and expanding market horizons.
Global Automotive Vehicle Market Outlook:
The global automotive vehicle market is poised for growth, with an optimistic outlook of 80+ million units for 2023, marking a approx. 1.75 percent increase from previous forecasts.
Anticipated to rise to 100.0 million units by 2030, the market faces challenges such as China’s crisis impacting production, particularly in North America, Europe, and Japan. Despite these challenges, the total system market value for 2023-24 is estimated at $800+ billion.
Regional Impacts and Market Trends:
Europe is experiencing a slowdown, influenced by ongoing geopolitical conflicts such as the war in Ukraine. The combined system market for 2023-24 is expected to be $850+ billion, with production remaining slightly higher than expected in all regions. Electric Vehicle rollout is gaining momentum, with Battery Electric Vehicle (BEV) production projected to increase from 8.0+ million units to 35-38+ million units by 2030.
The automotive Electrical/Electronic architecture is undergoing consolidation, with automakers and suppliers adopting zonal architectures. These architectures replace numerous single-function Electronic Control Units, with a small number of powerful, multi-function ECUs. Vehicle servers, central controllers, and High-Performance Compute, ECUs are connected to zonal gateway ECUs, streamlining data flow within the in-vehicle networks.
Automotive Semiconductor Demand:
The demand for automotive semiconductors is on the rise, projected to grow from approx. $53.0+ billion in 2023 to $130+ billion by 2030. Different segments, such as body, chassis, driver info, Powertrain, and zonal controllers, will experience varying degrees of growth, reflecting the increasing reliance on semiconductor technology in the automotive sector.
Power Management and Electrification:
The move towards electrification introduces new challenges and opportunities in power management. Thermal management, a critical aspect, demands a significant amount of power. As the automotive industry embraces electrification, advancements in Electric Vehicles (EVs) focus on technologies to enhance battery efficiency and safety, ultimately propelling vehicles forward.
Collaboration and Transparency:
Collaboration and transparency among Original Equipment Manufacturers and semiconductor vendors are becoming more prominent. This collaborative approach ensures that stakeholders are well-informed and capable of swiftly deploying new technologies and innovations, fostering a dynamic environment within the automotive and semiconductor industries.
