Commercial Vehicles Semiconductor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Processor, Analog IC, Discrete Power Device, Sensor, Memory Device), By Application Type (Powertrain, Safety, Body Electronics, Chassis, Telematics & Infotainment) By Region, By Competition 2018-2028
Published Date: October - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Consumer Goods and Retail | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationCommercial Vehicles Semiconductor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Processor, Analog IC, Discrete Power Device, Sensor, Memory Device), By Application Type (Powertrain, Safety, Body Electronics, Chassis, Telematics & Infotainment) By Region, By Competition 2018-2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 26 billion |
| CAGR (2023-2028) | 5.82% |
| Fastest Growing Segment | Telematics & Infotainment |
| Largest Market | Asia-Pacific |
Market Overview
Global Commercial Vehicles Semiconductor Market has valued at USD 26 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.82% through 2028. Semiconductors are a sort of electrical component that can conduct electricity under certain conditions. Semiconductors are employed in automobiles to verify that the connected component works properly under all conditions. Semiconductors used in automobiles are made of silicon and germanium, which are the primary components required for the proper operation of automotive electronics. Semiconductors installed in automobiles assist in controlling many functions such as controlling the vehicle's air conditioner system and assuring the vehicle's safety. Furthermore, advancements in vehicle-based technology such as the introduction of advanced driver assistance systems (ADAS), telematics, and infotainment, as well as an increased inclination toward the adoption of electric vehicles, contribute to the global growth of the Commercial Vehicles Semiconductor market. Rapid advances in the automotive industry, an increase in demand for safety features in automobiles, and the introduction of innovative technologies for advanced user interface (UI) fuel global market growth. Furthermore, concerns like operational failures in extreme climatic conditions, as well as high initial cost and complex construction, act as a barrier to global market growth. However, factors such as increased demand for electric and hybrid vehicles, as well as increased technological improvement and innovation in ADAS, provide sufficient chances for market expansion during the projection period.
Key Market Drivers
Electrification of Commercial Vehicles
One of the primary drivers of the Global Commercial Vehicles Semiconductor Market is the electrification of commercial vehicles. The automotive industry is experiencing a shift toward cleaner and more sustainable transportation, and this transition is accelerating in the commercial vehicle segment. Electric commercial vehicles (eCVs), which include electric trucks and buses, are gaining traction due to their environmental benefits and operational advantages. eCVs rely on advanced BMS to manage their high-capacity lithium-ion batteries efficiently. Semiconductors are integral to BMS components, enabling precise control of charging and discharging processes, temperature monitoring, and overall battery health management. Power semiconductor devices like silicon carbide (SiC) and gallium nitride (GaN) play a crucial role in eCVs by improving energy conversion efficiency. These semiconductors minimize power losses during energy conversion, which is essential for extending the range and improving the overall efficiency of electric commercial vehicles. Semiconductor components are used extensively in electric powertrains, including motor controllers and inverters. These components ensure precise control of electric motors, leading to smoother acceleration, regenerative braking, and enhanced overall vehicle performance.
The electrification trend in commercial vehicles is being driven by the need to reduce greenhouse gas emissions, lower operating costs, and comply with stringent environmental regulations. Semiconductor manufacturers are developing innovative solutions to address the unique challenges posed by electric commercial vehicles, such as high-voltage systems and rapid charging requirements.
Advanced Driver-Assistance Systems (ADAS)
Advanced driver-assistance systems (ADAS) are a major driver of the Commercial Vehicles Semiconductor Market. These systems are being integrated into commercial vehicles to enhance safety, reduce accidents, and improve overall driver assistance. ADAS relies heavily on semiconductor technologies to perceive the vehicle's surroundings, make real-time decisions, and assist drivers in various ways. Commercial vehicles are equipped with a variety of sensors, including radar, LiDAR, cameras, and ultrasonic sensors. Semiconductors play a critical role in processing data from these sensors, providing accurate information for collision avoidance, lane-keeping, and adaptive cruise control. Microcontrollers are essential for managing various functions within ADAS systems and processing sensor data. These semiconductor components enable features such as automatic emergency braking, blind-spot monitoring, and traffic sign recognition. ADAS often relies on connectivity to access real-time traffic data and communicate with other vehicles and infrastructure. Semiconductor solutions enable vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, enhancing the effectiveness of ADAS features. As commercial vehicle manufacturers strive to improve safety, reduce accidents, and enhance driver assistance, the demand for semiconductor components that support ADAS continues to grow. ADAS represents a crucial step toward achieving safer and more efficient commercial transportation.
Connected Commercial Vehicles
Connectivity is a significant driver in the Global Commercial Vehicles Semiconductor Market. Commercial vehicles are increasingly equipped with advanced telematics and connectivity solutions to improve fleet management, driver monitoring, and overall operational efficiency. Semiconductors are essential for telematics systems that provide real-time data on vehicle location, fuel consumption, engine performance, and maintenance needs. Fleet managers use this data to optimize routes, reduce fuel consumption, and schedule maintenance proactively. Commercial vehicles are equipped with fleet management systems that rely on semiconductor components for data collection, processing, and communication. These systems help optimize logistics, monitor driver behavior, and enhance overall fleet performance. Connectivity enables remote monitoring of driver behavior and vehicle performance. Semiconductor components facilitate the transmission of data related to driver safety, adherence to traffic rules, and vehicle diagnostics. Semiconductor solutions are essential for delivering OTA updates to commercial vehicles. These updates can include performance enhancements, security patches, and feature upgrades, improving the longevity and functionality of the vehicle. The trend of connected commercial vehicles aims to streamline operations, reduce downtime, and improve overall fleet efficiency. Semiconductor technologies play a central role in enabling these connectivity solutions, allowing fleet managers to make data-driven decisions and optimize their operations effectively.
Autonomous Commercial Vehicles
The development and deployment of autonomous commercial vehicles are driving the Commercial Vehicles Semiconductor Market. The industry is moving toward the implementation of self-driving trucks and buses to improve efficiency, reduce labor costs, and enhance safety. Autonomous commercial vehicles rely heavily on sensors, cameras, and LiDAR systems to perceive their surroundings. Semiconductors enable these sensors to collect and process vast amounts of data for navigation and obstacle detection. Powerful processors are essential for autonomous vehicle control systems. These processors execute complex algorithms, allowing vehicles to make real-time decisions, plan routes, and avoid obstacles. Vehicle-to-everything (V2X) communication, facilitated by semiconductor solutions, is crucial for autonomous commercial vehicles to interact with other vehicles, infrastructure, and pedestrians. This communication enhances safety and efficiency. AI algorithms, supported by semiconductor components, are integral to autonomous vehicle decision-making. These algorithms help vehicles interpret sensor data and make autonomous driving decisions. The trend of autonomous commercial vehicles has the potential to revolutionize the logistics and transportation industries. While full autonomy may still be in the future, semiconductor technologies are advancing rapidly to support the development and deployment of these vehicles.
Regulatory Requirements and Environmental Concerns
Regulatory requirements and environmental concerns are significant drivers in the Commercial Vehicles Semiconductor Market. Governments worldwide are imposing stricter emissions regulations and promoting environmental sustainability. Commercial vehicle manufacturers are under increasing pressure to reduce emissions and improve fuel efficiency. Stringent emissions standards require commercial vehicle manufacturers to adopt technologies that reduce greenhouse gas emissions and air pollutants. Semiconductors play a role in optimizing engine performance, exhaust systems, and emission control systems. Commercial vehicles are being equipped with semiconductor-based technologies that improve fuel efficiency.
Key Market Challenges
Cost and Pricing Pressures
One of the primary challenges in the Global Commercial Vehicles Semiconductor Market is the relentless cost and pricing pressures faced by semiconductor manufacturers. Commercial vehicles are often price-sensitive, and fleet operators and manufacturers alike are constantly seeking ways to reduce costs. The production of semiconductors for commercial vehicles often operates at a smaller scale compared to the consumer electronics industry. This limits the potential for economies of scale, making it challenging to achieve cost efficiencies. Commercial vehicle manufacturers demand competitive pricing for semiconductor components, which can lead to reduced profit margins for semiconductor companies. This pressure to lower prices can affect investments in research and development. Commercial vehicles require specialized semiconductor components that can withstand harsh operating conditions, including extreme temperatures, vibrations, and electromagnetic interference. Meeting these requirements can add to the production cost. Commercial vehicles have longer product lifecycles compared to consumer electronics. This means that semiconductor manufacturers must support their products with ongoing maintenance and supply even as newer technologies emerge.
Rapid Technological Advancements
The pace of technological advancements in the commercial vehicle industry poses a significant challenge for the Commercial Vehicles Semiconductor Market. As commercial vehicles become more connected, electrified, and autonomous, the semiconductor components must keep up with evolving requirements. Technological advancements are leading to shorter product lifecycles for semiconductor components in commercial vehicles. As newer, more advanced technologies emerge, older components become obsolete more quickly. The integration of advanced technologies, such as ADAS and autonomous driving systems, requires semiconductor components with increased processing power and capabilities. This complexity can be challenging to achieve while maintaining cost-effectiveness. Compatibility issues can arise as commercial vehicles are equipped with a mix of older and newer semiconductor technologies. Ensuring that these components work seamlessly together is a significant challenge. With the increasing connectivity of commercial vehicles, data security becomes a critical concern. Semiconductor components must incorporate robust security features to protect sensitive information from cyber threats.
Supply Chain Disruptions
The Global Commercial Vehicles Semiconductor Market faces supply chain disruptions that can impact the availability of critical semiconductor components. These disruptions can result from various factors, including geopolitical tensions, natural disasters, and global economic conditions. Geopolitical tensions and trade disputes can lead to restrictions on the export and import of semiconductor materials and components. This can disrupt the supply chain and affect production schedules. Natural disasters such as earthquakes, floods, and hurricanes can disrupt semiconductor manufacturing facilities and suppliers, leading to delays in production and potential shortages. Economic downturns or recessions can impact commercial vehicle production, leading to reduced demand for semiconductor components. Conversely, economic booms can strain supply chains as demand surges. Transportation disruptions, such as port congestion and shipping delays, can affect the timely delivery of semiconductor components to manufacturers.
Complex Regulatory Environment
The regulatory environment presents a complex challenge for the Global Commercial Vehicles Semiconductor Market. Commercial vehicles are subject to a multitude of regulations, including safety standards, emissions requirements, and cybersecurity mandates. Commercial vehicles must adhere to stringent safety standards, which often require the integration of advanced driver-assistance systems (ADAS). Semiconductor components must meet these standards to ensure vehicle safety. Emissions regulations are becoming increasingly strict, driving the adoption of electric and hybrid commercial vehicles. Semiconductor components must support efficient electric powertrains and battery management systems (BMS). The increasing connectivity of commercial vehicles raises concerns about cybersecurity. Regulations related to data protection and cybersecurity require semiconductor components to incorporate robust security features. The regulatory landscape can vary significantly from one region to another. Semiconductor manufacturers must navigate a complex web of regulations to ensure compliance in various markets. Compliance with these regulations can be time-consuming and costly for semiconductor companies. However, it is essential to ensure that commercial vehicle components meet safety, emissions, and cybersecurity requirements to gain market acceptance.
Complex Supply Chain Management
Managing the supply chain for semiconductor components in the Commercial Vehicles Semiconductor Market can be a complex challenge. Commercial vehicles often involve a diverse network of suppliers, manufacturers, and service providers, each with unique requirements and demands. The supply chain for commercial vehicle components can span multiple countries and regions, leading to logistical challenges related to transportation, customs, and coordination. Commercial vehicle manufacturers often source semiconductor components from a variety of suppliers to meet their specific needs. Coordinating these diverse suppliers can be challenging. The trend toward JIT manufacturing in the automotive industry requires precise coordination of component deliveries to avoid production delays. Ensuring consistent quality across a diverse supply chain is crucial to avoid component failures and ensure the reliability of commercial vehicles. Effective supply chain management is essential to meet the demands of commercial vehicle manufacturers while maintaining efficient operations and ensuring the timely delivery of semiconductor components.
Key Market Trends
Electrification of Commercial Vehicles
One of the most prominent trends in the Global Commercial Vehicles Semiconductor Market is the electrification of commercial vehicles. The push for cleaner and more sustainable transportation has led to the development of electric commercial vehicles (eCVs). These vehicles are powered by electric drivetrains and require sophisticated semiconductor components to operate efficiently. eCVs rely on advanced BMS to manage the performance and health of their batteries. Semiconductors play a critical role in optimizing charging and discharging processes, monitoring temperature, and ensuring the overall safety and longevity of the battery. Power semiconductor devices like silicon carbide (SiC) and gallium nitride (GaN) are crucial for efficient energy conversion in eCVs. These semiconductors reduce power losses, increase charging efficiency, and extend the range of electric commercial vehicles. Semiconductors are used extensively in electric powertrains, including motor controllers and inverters. These components ensure precise control of the electric motors, resulting in smoother acceleration, regenerative braking, and overall improved vehicle performance. The electrification trend is reshaping the commercial vehicles semiconductor landscape, as manufacturers work to develop cutting-edge solutions that address the unique challenges of electric commercial vehicles and contribute to their widespread adoption.
Advanced Driver-Assistance Systems (ADAS)
Advanced driver-assistance systems (ADAS) are increasingly being integrated into commercial vehicles to enhance safety and reduce accidents. These systems rely on semiconductor technologies to perceive the vehicle's surroundings, make real-time decisions, and assist drivers in various ways. Commercial vehicles are equipped with a range of sensors, including radar, LiDAR, cameras, and ultrasonic sensors. Semiconductors play a crucial role in processing data from these sensors and providing accurate information for collision avoidance, lane-keeping, and adaptive cruise control. Microcontrollers are used in ADAS to manage various functions and process sensor data. These semiconductors enable features such as automatic emergency braking, blind-spot monitoring, and traffic sign recognition. ADAS often relies on connectivity to access real-time traffic data and communicate with other vehicles and infrastructure. Semiconductor solutions enable vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, enhancing the effectiveness of ADAS features. As commercial vehicle manufacturers strive to improve safety and reduce accidents, the demand for semiconductor components that support ADAS will continue to grow. This trend is not only about enhancing road safety but also reducing operational costs for fleet operators through improved driver assistance.
Connected Commercial Vehicles
Connectivity is a significant driver in the Global Commercial Vehicles Semiconductor Market. Commercial vehicles are increasingly being equipped with advanced telematics and connectivity solutions to improve fleet management, driver monitoring, and overall operational efficiency. Semiconductors are vital for telematics systems that provide real-time data on vehicle location, fuel consumption, engine performance, and maintenance needs. Fleet managers use this data to optimize routes, reduce fuel consumption, and schedule maintenance proactively. Commercial vehicles are equipped with fleet management systems that rely on semiconductor components for data collection, processing, and communication. These systems help optimize logistics, monitor driver behavior, and enhance overall fleet performance. Connectivity enables remote monitoring of driver behavior and vehicle performance. Semiconductors facilitate the transmission of data related to driver safety, adherence to traffic rules, and vehicle diagnostics. Semiconductor solutions are essential for delivering OTA updates to commercial vehicles. These updates can include performance enhancements, security patches, and feature upgrades, improving the longevity and functionality of the vehicle. The trend of connected commercial vehicles is driven by the desire to streamline operations, reduce downtime, and improve overall fleet efficiency. Semiconductor technologies play a central role in enabling these connectivity solutions.
Autonomous Commercial Vehicles
The development and deployment of autonomous commercial vehicles represents a transformative trend in the Commercial Vehicles Semiconductor Market. The industry is moving toward the implementation of self-driving trucks and buses to improve efficiency, reduce labor costs, and enhance safety. Autonomous commercial vehicles rely heavily on sensors, cameras, and LiDAR systems to perceive their surroundings. Semiconductors enable these sensors to collect and process vast amounts of data for navigation and obstacle detection. Powerful processors are essential for autonomous vehicle control systems. These processors execute complex algorithms, allowing vehicles to make real-time decisions, plan routes, and avoid obstacles. Vehicle-to-everything (V2X) communication, facilitated by semiconductor solutions, is crucial for autonomous commercial vehicles to interact with other vehicles, infrastructure, and pedestrians. This communication enhances safety and efficiency. AI algorithms, supported by semiconductor components, are integral to autonomous vehicle decision-making. These algorithms help vehicles interpret sensor data and make autonomous driving decisions. The trend of autonomous commercial vehicles has the potential to revolutionize the logistics and transportation industries. While full autonomy may still be in the future, semiconductor technologies are advancing rapidly to support the development and deployment of these vehicles.
Segmental Insights
Component Type Analysis
The market is divided into processors, analog ICs, discrete power devices, sensors, and memory devices based on component types. The processor market share was the highest in 2021, and it is anticipated that this market share will remain dominant throughout the projected period. One of the main elements promoting the segment's growth is the increased use of electronics in automobiles.
The second-fastest segment to emerge is anticipated to be memory devices. This growth may be attributed to the ongoing electrification of significant automotive applications, such as the powertrain, which is driving up demand for power semiconductors like MOSFETs and IGBTs. In order to program numerous control systems into an autonomous vehicle, extra memory devices must be added to each automobile due to the demand for increased vehicular safety and cutting-edge features.
Application Type Analysis
The global market is divided into powertrain, safety, body electronics, chassis, and telematics & infotainment segments based on application. During the projected period, the safety category is anticipated to maintain its leadership. It now holds the biggest market share. Due to an increase in traffic accidents in several nations, strict restrictions on vehicle safety have been put in place, which is mostly to blame. Automakers include a range of safety-related features, such as advanced driver aid systems and emergency braking systems, into their vehicles to comply with safety laws. These elements are fueling market expansion. Over the projected period, the telematics & infotainment market is anticipated to develop at the fastest rate. The main driver is the growing need for in-car connectivity and infotainment features including navigation systems, audio and video players, over-the-air upgrades, and smartphone connectivity.
Regional Insights
Asia Pacific dominated the world market with a respectable market share and is likely to keep that position over the coming years. The largest CAGR is anticipated to occur in this region between 2023 and 2028. The region's semiconductor business is expanding thanks in part to the fastest-growing automotive industries in nations like China, India, and Japan, as well as related government backing. The industry's expansion has also been aided by China's robust demand for electric vehicles. In addition, increasing commercial electric vehicle adoption in countries like India, Japan, South Korea, and others may spur market expansion soon. After Asia Pacific, North America may experience the highest growth rate. Market expansion could be influenced by rising sales of electric commercial and passenger vehicles in the US. Additionally, the growing attention being paid to the commercialization and development of electric autonomous cars and Robo-taxis may present profitable growth prospects in the years to come. The second-fastest expanding market is in Europe. The European market is expanding because of tightening emission regulations, greater support for electrification, and rising investment in autonomous vehicle technologies.
Recent Developments
- Infineon Technologies released a new AURIX TC4xfamily of 28 nm microcontrollers (MCUs) in January 2022. These MCUs areintended for use in eMobility, ADAS, automotive E/E systems, and cost-effectiveAl applications.
- STMicroelectronics revealed new automotivemicrocontrollers (MCUs) designed for electric vehicles in February 2022. Newautomotive microcontrollers (MCUs) for centralized (zonal and domain)electronic architectures and electric vehicles were introduced bySTMicroelectronics in February 2022. High-speed control-loop processing isintegrated into the new Stellar E MCUs from STMicroelectronics, which are madefor software-defined electric vehicles of the next generation.This platformmakes it possible for a brand-new value chain for EVs with the new Stellar Edevices.
- June 2021NXP Semiconductors N.V. has introducedtwo new $32Z and $32E processor families, which extend innovation and speedintegration of automotive applications for next-generation vehicles throughtheir diverse real-time applications for domain and zonal control, safetyprocessing.
- ROHM developed a new regulator (LDO) ICs forprimary (direct connection to 12V) power supplies in a variety of applications,including engine, body, ADAS, and automotive infotainment, in June 2022, withstable operation at nanoscale output capacitance.
- Robert Bosch planned to invest in a semiconductorproduction plant in Reutlingen in February 2022, citing the current chipshortage and increased demand for mobility and IoT applications. Between 2022and 2025, new manufacturing facilities will be established.
Key Market Players
- Robert Bosch GmbH
- InfineonTechnologies AG
- STMicroelectronics
- NXPSemiconductors
- ToshibaCorporation
- OnSemiconductor Corporation
- ROHM Co., Ltd.
- TexasInstruments Incorporated
- RenesasElectronics Corporation
- DensoCorporation
Report Scope
In this report, the Global Commercial Vehicles Semiconductor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below
- Commercial Vehicles Semiconductor Market, By Component Type
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- Commercial Vehicles Semiconductor Market, By Application Type
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- Commercial Vehicles Semiconductor Market, By Region
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