According to a new report, published by KBV research, The Global Automotive Chip Market size is expected to reach $87.1 billion by 2031, rising at a market growth of 11.0% CAGR during the forecast period.
Innovation is at the heart of the automotive chip market, driving advancements in technology and enhancing vehicle capabilities. Integrating multiple functions onto a single processor is made possible by developing System-on-processor (SoC) designs, which reduces the device's size, weight, and cost. These chips can handle various tasks, such as processing, memory management, connectivity, optimizing performance and power consumption in automotive applications.
The Microcontrollers & Microprocessors segment is experiencing a CAGR of 10.2 % during the forecast period. Microcontrollers and microprocessors are essential for various automotive applications, including engine control, safety systems, infotainment, and advanced driver-assistance systems (ADAS). Their ability to process data efficiently and manage multiple functions in real-time makes them critical components in modern vehicles.
The Telematics & Infotainment segment led the maximum revenue in the Global Automotive Chip Market by Application in 2023, thereby, achieving a market value of $20.6 billion by 2031. This segment includes features that enhance connectivity and user experience, such as navigation systems, Bluetooth and Wi-Fi connectivity, entertainment systems, and vehicle diagnostics. As consumers seek seamless connectivity and entertainment options within their vehicles, the demand for advanced automotive chips that support these systems has risen significantly.
The Passenger Vehicles segment is growing at a CAGR of 10.6 % during the forecast period. The increasing demand for personal mobility, coupled with advancements in vehicle technology, has driven the adoption of various electronic systems in passenger cars. Modern consumers increasingly seek features such as enhanced safety systems, infotainment options, connectivity, and comfort, all of which require sophisticated automotive chips.
Full Report: https://www.kbvresearch.com/automotive-chip-market/
The Asia Pacific region dominated the Global Automotive Chip Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $36.2 billion by 2031. The North America region is anticipated to grow at a CAGR of 10.3% during (2024 - 2031). Additionally, The Europe region would witness a CAGR of 10.6% during (2024 - 2031).
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