Discrete Power Devices: Fastest-Growing Component Segment for Automotive Sector

A recent report from The Brainy Insights highlights the future of the global automotive semiconductor market, fueled by the soaring demand for advanced driver assistance systems (ADAS) and infotainment systems. The report predicts that the market is on track to reach a valuation of USD 345.54 billion by 2032, exhibiting a (CAGR) of 18.26% during the forecast period spanning from 2023 to 2032.

Dominance of Passenger Cars

Within the automotive semiconductor market, the vehicle type segment plays a significant factor in influencing market dynamics. It is projected that passenger cars will continue to hold the largest market share.

Countries like India, China, Indonesia, Thailand, and Malaysia have experienced a significant rise in their middle-class population and disposable incomes. This socio-economic transformation has spurred a heightened demand for passenger cars.

The Ascendance of Discrete Power Components

Among the components comprising the automotive semiconductor market, discrete power devices emerge as the frontrunners, anticipating a CAGR of approximately 19% throughout the forecast period. The heightened electrification of essential automotive applications, such as powertrains, stands as the primary driving force behind the increased demand for power components like MOSFETs and IGBTs.

As vehicles continue to evolve toward greater electrification, the demand for memory devices also surges to facilitate the seamless integration of multiple control systems into autonomous platforms. This rising need for enhanced safety and advanced features in automobiles is expected to further drive the market's sustained growth.

Safety Takes Center Stage

In the domain of applications, safety emerges as the focal point, leading a 34.22% market share as of 2022. This dominance can be attributed to the growth in demand for safety systems in vehicles.

A multitude of safety systems, including Electronic Stability Control (ESC), blind spot detection, lateral control/support, side collision avoidance, driver monitoring, Intelligent Speed Adaptation (ISA), Collision Avoidance System (CAS), Adaptive Cruise Control (ACC), and various others, have become integral components of modern automobiles.

The trajectory of market growth is undeniably intertwined with the escalating demand for advanced comfort and safety systems. Sales of Advanced Driver Assistance Systems (ADAS) are projected to witness an upswing, driven by the growing consumer demand for safety features aimed at accident prevention and collision mitigation.