The global automotive semiconductor market is on track to surpass $88-billion by 2027 – driven by the surging demand for high-performance computing (HPC) chips, graphics processing units (GPUs), radar chips, and laser sensors, according to IDC.

The research group’s report – 2023 Worldwide Competitive Landscape of Automotive Semiconductor – says this growth is fueled by the increasing adoption of the advanced driver assistance system (ADAS), electronic vehicles (EVs), and Internet of Vehicles (IoV) bringing new growth opportunities for the automotive semiconductor sector.

IDC predicts that as the value of semiconductors per vehicle continues to rise, semiconductor companies will become increasingly critical to the automotive supply chain.

Leading semiconductor companies such as Infineon, NXP, STMicroelectronics, Texas Instruments (TI), and Renesas Electronics are investing heavily in developing solutions for next-generation microcontrollers, system on a chip (SoC), and high-resolution radars.

To meet the needs of automobiles for higher volume, higher performance, and higher safety of semiconductors they continuously enhance ADAS, autonomous driving systems, and cockpit and networking features – and integrate complex electronic control units (ECUs) and sensor fusion technology.

The report says the top five vendors in the automotive semiconductor market captured over 50% of market share in 2023. Infineon led the market with a share of 13,9%; it was followed by NXP and STMicroelectronics holding a market share of 10,8% and 10,4% respectively; TI and Renesas Electronics also demonstrated strong performance, accounting for 8,6% and 6,8% respectively.

Advancements in the automotive sector have fueled the demand for high-performance, high-safety semiconductors. As EVs and autonomous driving technologies evolve, those semiconductor companies will continue to play a key role in the global automotive semiconductor market.

“The common strengths of these leading semiconductor vendors include substantial R&D investment and strong technological leadership, comprehensive product portfolios, solid strategic partnerships, efficient global operations, as well as safe and reliable product performance,” says Adela Guo, research director at IDC Asia Pacific. “These features empower them to stay ahead of the competition and propel the sustainable development of the automotive sector towards electrification, networking, and intelligence.”