The global automotive industry is undergoing a transformation, fuelled by the rise of electrification, autonomous driving, and innovative mobility models. Central to this evolution is the automotive semiconductor market, which is set to experience significant growth as vehicles increasingly integrate advanced electronic systems. This shift presents both challenges and opportunities for Canada’s electronics engineers and designers, who play a crucial role in shaping the future of automotive technology.

The automotive semiconductor market is expected to see growth as the number of semiconductor devices per vehicle rises. According to projections by Yole Group, the average number of devices per car will increase from approximately 834 in 2023 to 1,106 by 2029.

According to recent data from IDC, in 2023, the worldwide automotive semiconductor market share was led by Infineon with a 13.9% share, followed by NXP Semiconductors at 10.8% and STMicroelectronics at 10.4%. Source: IDC

International Data Corp. (IDC) expects the automotive semiconductor market to exceed USD 88 billion by 2027, backed by the growing adoption of advanced driver assistance systems (ADAS), electric vehicles (EVs), and the Internet of Vehicles (IoV).

The increasing value of semiconductors per vehicle is driving demand for high-performance computing chips, GPUs, radar chips, and laser sensors. To maintain competitive advantages, major vendors are employing strategies such as increased R&D investment, strategic partnerships, and innovative product development, reports the IDC.

Infineon, NXP, STM, TI & Renesas

IDC says that five companies dominated the automotive semiconductor market in 2023, collectively capturing over 50% of the market – namely Infineon, NXP, STMicroelectronics, Texas Instruments (TI) and Renesas Electronics.

Infineon excels in power electronics and advanced control systems, while NXP leads in vehicle-to-everything (V2X) communication and security technologies. STMicroelectronics has a strong footing in MEMS and power semiconductors, while TI offers a portfolio of analog and embedded solutions and Renesas offers a collection of microprocessors and SoCs to ensure functional safety and reliability.

Other prominent players in the field are Bosch, ON Semiconductor, Broadcom, Micron, and Qualcomm.