China Emerges as Key Market for Automotive Chips, Propelled by Rising Consumer Demand and Government Support

Automotive Chip Market overview

It is expected that the Automotive Chip Market will hold worth USD 117.76 billion by 2028 and a CAGR of 12.27% during the forecast period 2022 to 2030. The market was valued at USD 33.17 billion in 2021. Automotive chips are used to monitor and control the different functions of an automobile. It uses many algorithms to solve a particular task. Consumers can experience a smooth and easy driving experience to the drivers. Automotive cars can use the chip to handle the navigation and infotainment system. It helps consumers to protect their vehicles by providing an anti-theft system. With the sudden coronavirus outbreak, the market got severely impacted. The impact was mostly due to the disruption in the supply chain, which led to decreases in the demand for commercial vehicles as the non-essential services declined.

The main cause of the supply chain disruption is the chip shortage. But as the situation improves, the market trends and the market will experience change. As the demand for vehicles increases, so are the passenger vehicles, which is the major factor for growth. The need for vehicle safety and increasing demand for engine control units in vehicles is increasing, improving market growth. With the increase of electric and hybrid cars, the market is also rising. As the chip is an electronic component, people can face defects, and it can fail as well, and the system failure can lead to the whole system failure. The increase in the price of chip-based products is the key challenge for the market.

Request Free Sample of Report @ https://www.marketresearchfuture.com/sample_request/7676

Automotive Chip Market segmentation

The Automotive Chip Market has some major segmentations segmented by product, application and vehicle type. Based on the Product, the market is segmented into Analog ICs, Microcontrollers Microprocessors, and Logic ICs. The logic ICs held the largest market share in the forecast period and are expected to grow at the same pace in upcoming years. The Automotive Chip Market is categorised into Body Electronics, Telematics Infotainment, Powertrain, Safety systems, and Chassis by the segment Application.

The chassis component dominates the market with good market growth during the forecast period. Each segment will have a good market value in the future. Vehicle Type variables are Passenger cars and Commercial Vehicles. Passenger cars will hold the largest market share in the forecast period. Propulsion segment is bifurcated into ICE, BEVs and HEVs. All the market segment contributes to the growth and will propel the market shortly.

Speak to Analyst @ https://www.marketresearchfuture.com/ask_for_schedule_call/7676

Automotive Chip Regional analysis

The Automotive Chip Market is studied in North America, Europe, Asia Pacific and the rest of the world. The Asia Pacific will dominate the market during the forecast period and reach a value of 26.05 billion in the future. The increasing demand for automotive semiconductor devices is enhancing market growth. In 2017, China was at USD 9,659.5 million; hence, the region propels the market.

Industry news

To Volkswagen, bottlenecks would likely ease towards the end of this year, and by 2023, production can return to 2019 levels next year but still not enough to meet heightened demand for the chips.

Automotive Chip Market Key Players