Growth Forecast of Automotive Semiconductor Market and EV Developments

TapTechNews August 23rd news, the market research organization TechInsights released a report titled "Sustainable xEV Network: Opportunities in the Semiconductor Industry" this afternoon.

The report points out that the baseline growth prediction for battery electric vehicles (BEV) shows that by 2030, the automotive semiconductor market will achieve nearly double growth. Even in the hypothetical scenario of a decline in the BEV market, semiconductor demand will still increase significantly, thanks to the increasing complexity and evolution of peripheral systems such as advanced driver assistance technology ADAS and infotainment systems.

So far, the largest market for electric vehicles (EV) is mainly concentrated in high-income countries, among which Norway is particularly prominent and has become a successful model. The report says that this seems to be contrary to the concern that the performance of electric vehicles is relatively poor in cold climates that people often mention.

However, in today's new car sales in Norway, more than 80% are electric vehicles. Followed by Sweden with a 60% share, and China follows closely with a 37% sales of electric vehicles (TapTechNews note: According to the data of the Passenger Car Association on August 7, the retail sales share of new energy vehicles in July 2024 reached 50.84%).

TechInsights predicts that China will maintain its position as the world's largest electric vehicle market until 2030, and the annual output will double to nearly 60 million vehicles.

Previously, another institution IDC also predicted in the report that by 2027, the global automotive semiconductor market size will exceed 88 billion US dollars (currently about 628.572 billion yuan). As the value of semiconductors per vehicle continues to increase, the attention and importance of semiconductor enterprises in the automotive industry chain have further increased.