Electrification and autonomy: a semiconductor content boost to $1,000 per car by 2029
Automotive OEMs are moving upstream in the semiconductor supply chain with diverse strategies.
The automotive semiconductor market is expecting a significant CAGR of 11% between 2023 and 2029 to almost $100 billion at the end of the period.
Semiconductor device value per car: about $1000 in 2029.
The conventional automotive supply chain needs to thoroughly examine its position and transform it to remain competitive.
The most invested automotive semiconductor segments by OEM are power electronics, high-performance SoCs for ADAS, cockpit… and MCUs for future E/E architectures.
$1,000 is the figure to keep in mind to visualize the key role of semiconductor technologies within the automotive industry in 2029.
Yole Group’s analysts announce a $100 billion automotive semiconductor market at that time. Behind those figures, ADAS and safety will experience the highest growth with 14% CAGR between 2023 and 2029. Electrification is not included, as it is the second-largest market driver for semiconductor growth with more than 13% CAGR during the same period. And even though electrification in Europe is slowing down compared to last year, the Chinese market is still highly active in that field.
Yole Group is releasing its new Semiconductor Trends in Automotive report, 2024 edition. This new product provides an in-depth understanding of the changing automotive industry ecosystem and supply chain. It delivers a complete overview of the current technological trends and a 2019-2029 forecast of market value, volume, and wafers.
This year, the ‘Triple-C’ model—a specialized tool designed to help OEMs develop their individual semiconductor strategies—has been expanded to include all of the top 20 global OEM groups, along with leading Chinese EV startups such as Nio, XPeng, and Li Auto. The 2024 analysis highlights significant diversity within the ecosystem. On average, OEMs are becoming more deeply engaged in the semiconductor sector. Another notable trend is that Chinese OEMs are making broader investments in various types of chips and are more deeply involved in the upstream supply chain. Power modules, which are critical enablers for EVs, serve as a prime example. Nearly all Chinese OEMs have investments in this segment across various formats. In addition to power modules, high-performance processors and MCUs are also highly favored by OEMs. Yole Group automotive semiconductor report offers a detailed discussion of each OEM’s strategy.
The semiconductor landscape is evolving rapidly, with emerging players making significant inroads. Who are the key suppliers to keep an eye on, and which cutting-edge technologies are they championing? The Semiconductor Trends in Automotive report from Yole Group takes a comprehensive look at the intersection of automotive innovation and high-tech advancements, offering a deep dive into the latest trends driving the sector forward. As software-defined vehicles are expected to emerge in the coming years, Yole Group analyzed their impact on E/E architecture and the increasing demand for domain and zone controllers. In the realm of semiconductors, particularly computing, chiplets are rapidly gaining traction. These could be utilized to integrate multiple functions within ADAS and infotainment systems, making future architectures more cost-effective.
For example:
Power devices: the growing attractivity of EVs is driving demand for SiC MOSFET modules, crucial for efficient power conversion. While global growth in BEVs is starting to slow, the gap is being filled by a range of hybrid technologies, all of which also rely heavily on advanced power electronics.
MCUs: Advanced 16nm and 10nm MCUs are essential for ADAS applications. Yole Group’s analysts include, for example, radars and sensor control. The evolution of E/E architecture toward domain and zonal controllers pushes the need for high-performance MCUs while lowering the total number of MCUs.
Computing power and memory: achieving higher levels of autonomy, beyond Level 3, will require greater memory capacity and enhanced computing power.
