The global automotive semiconductor market is poised to increase at a CAGR of 7% during the assessment period from 2020-2030, according to new research from Future Market Insights.

The growth is primarily attributed to a growing demand for usage of automotive semiconductors in camera-based sensors, 3-D mapping technology applications, Matrix LEDs for electric vehicles, camera-based sensors, LiDAR sensors, and others are projected to allow growth in the market.

An analyst from Future Market Insights comments, "Digitally equipped manufacturers are implementing their mobile platforms for evolving car platforms and in-car entertainment.

"Technology-based manufacturers have collaborated with media-streaming devices and services companies due to core capabilities and their aggressive capital investment. Thus, due to digital connectivity for instance vehicle-to-vehicle communication, the market is projected to fuel up during the assessment period."

Key takeaways from FMI's latest research:

• North America is anticipated to remain lucrative throughout the assessment period 2020-2030.
• The micro-components (processors) segment is anticipated to witness an accelerated expansion of 7.0% during the projected period.
• The passenger vehicle types segment will continue to lead the global market among other segments.
• The safety application category is likely to rise at a higher pace over the assessment period.
• The automotive industry will remain a key beneficiary throughout the projected period.

Key drivers for for the automotive semiconductor market:

• The growing production of vehicles across several nations has been complementing the market growth.
• Increasing preference for best-in-class features and greater performance in motor vehicles boost the market demand.
• Steady growth in the need for safety attributes in ultra-modern vehicles will propel market growth.

Key restraints for for the automotive semiconductor market:

Factors such as continuous optimisation of component size, maintaining balance amid quality and cost of the product, and the rising cost of the overall vehicle are continuously creating challenges for the automotive semiconductor market

According to FMI, given the debilitating effect of the COVID-19 pandemic on the automotive semiconductor market, market players are vying for prospects to stay afloat in the market scenario.

The digital and electrical vehicles being the chief source of the automotive semiconductors need, the global market is likely to decrease by 5% towards 2020 end. Despite the entire shutting down of the manufacturing plants throughout the lockdown, the total year-to-year expansion of the market is projected to be 5%-8% through 2021.

When it comes to regional analysis, China is the leading automotive manufacturing country in the world, and this factor alone is projected to boost shipments of automotive semiconductors in the nation over the years to come.

Supportive government initiatives to boost semiconductor manufacturing and the rising use of automobile computer chips are prominent factors that will govern automotive semiconductor demand through 2030.

Major companies identified in the global Automotive Semiconductor market include Samsung Semiconductors, Intel Corporation, NVIDIA Corporation, NXP Semiconductors, Texas Instruments, Broadcom, Qualcomm, Taiwan Semiconductor Manufacturing Co., ASE Technology Holding Co. and Micron Technology.