Why Are Automakers of APAC Using Semiconductors in Advanced Driving Systems?

The International Energy Agency (IEA) forecasts that the stock of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) in China will reach 38,570,612 units (cars) and 13,483,273 units (cars), respectively, by 2030. The IEA also predicts that the stock of BEVs (cars) and PHEVs (cars) in India will reach 7,279,298 units and 941,381 units, respectively, by 2030. The increasing sales of these vehicles will create a huge requirement for automotive semiconductors in the Asia-Pacific (APAC) region in the coming years due to their extensive use in electric vehicle (EV) batteries.

Moreover, the increasing integration of advanced mobility solutions, such as autonomous driving technology, owing to the rising awareness about vehicle safety, will fuel the APAC automotive semiconductor market growth in the foreseeable future. Autonomous driving features, such as blind-spot detection (BDS), adaptive cruise control (ACC), automatic parking system, glare-free high beam and pixel lights, automatic emergency braking system, automotive night vision system, crosswind stabilizer, lane change assistance system, and driver drowsiness detection system, work with the help of semiconductors.

According to P&S Intelligence, China and Japan dominate the APAC automotive semiconductor market due to the expanding automobile industry of these countries. The flourishing automotive industry in China can be credited to the improving living standard and escalating disposable income of people. In the coming years, South Korea and India will also adopt a significant volume of semiconductors due to the burgeoning demand for EVs and ICE-based automobiles. For instance, according to the OICA, 3,394,446 units and 3,506,774 units of automobiles were produced in India and South Korea, respectively, in 2020.

Thus, the mounting EV and ICE-based vehicle sales and increasing integration of ADAS in such automobiles will create an extensive requirement for semiconductors in the upcoming years.