Wednesday, July 24, 2024
ElectronicsAutomotive IC market grows 13.4% annually by 2026

Automotive IC market grows 13.4% annually by 2026


According to UTMEL, a global distributor of electronic components, the Automotive IC market price will increase up to 10% by 2026 with an average growth of 13.4% annually. IC Insight released its 3Q update holding the statistics of IC market share from 2020 to 2026. Automotive IC market share includes the major IC products such as automobiles, computers, infotainment systems, communication, and industrial products as well as government and military IC usage significantly in America, Europe, China, Japan, and the Pacific regions of Asia.

The automotive IC market was valued at $43,240 million in 2017, which may reach up to $89,140 million by 2025 with a growth rate at a CARG of 9.3% globally. IC market share is gradually increasing since 1998 when it was 4.7% but grown up to 7.4% by 2021 and 8.5% in 2022. With this growth rate, the IC market share is expected to be 9.9% by the year 2026.

UTMEL electronics has already announced that the IC Chip shortage will come to an end this year. The problem of IC chip shortage will be completely solved by 2023. Such as prices of driver ICs will be reduced by up to 20% and prices of raw materials for passive components will be reduced by up to 30% by the second half of 2022. All this is going to influence the market share of ICs all around the world.

There are many factors contributing to this gradual market growth worldwide. Major factors are consumer demand rate, inflation, government mandates, as well as an increase in the need and use of new IC microchips in the automotive industry. The incorporation of a myriad number of analog devices, sensors, driver assistance, device controllers, and safety and security systems are imparting a major role in such antiphon increase of IC market shares.

Another major factor is the emerging trend and demand for electric vehicles which turned out double in 2021 than the year 2020. EV Outlook reported the sales of electric vehicles as 6.6 million in 2022.

The covid-19 pandemic has directly influenced market trends in almost every industry all around the world. Such as the disruption of spare parts shipment by China, automobile manufacturing disruption in Europe, and the closure of assembly factories in the United States. Frequent lockdowns and restrictions due to the pandemic caused a shortfall of raw materials, delayed fabrication, and supply chain disruption eventually leading to an abrupt change in ICs market trends all around the world.

All these factors contribute to the market share of ICs in industrial and automotive up to the consumers’ level. The report has declared an estimated growth of 2021 to 2026 CAGR for the automotive market of ICs as 13.4% along with other end-use applications.

PR Newswire
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