PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532858
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532858
System Basis Chip Market size was valued at USD 14,581.2 Million in 2023, expanding at a CAGR of 9.5% from 2024 to 2032.
When an integrated circuit for automotive applications combines several functionalities into one chip, it is referred to as a System Basis Chip (SBC). Automotive electronic systems usually offer a small and effective solution by combining power management, communication interfaces, and diagnostic capabilities. With the growing need for enhanced car features, connectivity, and the adoption of electric vehicles, the market for System Basis Chips (SBC) has grown significantly. Communication between various electronic components, effective power distribution, and diagnostic features are all made possible by SBCs.
System Basis Chip Market- Market Dynamics
Rising Consumer Demand for Cars with Advanced Features to Propel Market Growth
The industry is expanding more quickly due to rising consumer demand for cars with cutting-edge features like transmission control, electric power steering, and battery management systems. Automated guided cars use system basis chips to personalize device behavior and guarantee a predictive response. Through the use of telematics and high-speed connection, they improve comfort and convenience. To guarantee passenger safety, these chips are utilized in telematics and infotainment systems to track blind spots and evaluate data. A Forbes research from 2021 states that 60% of consumers prefer automobiles with blind-spot monitoring, and 55% prefer cars with front and rear parking sensors. Implying that the market for high-end cars is expanding. To guarantee driver safety, NXP introduced S32Z & S32E processors with FS86 ASIL system foundation chips in June 2022. The system basis chip market would grow as a result of these factors.
System Basis Chip Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 9.50% over the forecast period (2024-2032)
Based on vehicle type segmentation, the passenger cars category was predicted to show maximum market share in the year 2023
Based on application segmentation, the body electronics category was the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global System Basis Chip Market is segmented based on Vehicle Type, Application, and Region.
The market is divided into the following categories based on vehicle type: Passenger Cars (LCVS, HCVS, AGVS) and Autonomous Vehicles. The passenger cars category dominates the market. With base chips, energy consumption is optimized, and the fuel economy of vehicles is increased. These find application in power management systems, energy recovery systems, and hybrid car components. Through power flow regulation, battery management, and energy-efficient appliance operation, chips such as these help to lower emissions and increase sustainability. System-based chips are in greater demand as people want their cars to have more connections and sophisticated capabilities. As automotive technology develops, safer and more convenient features become essential.
The market is divided into three categories based on application: Powertrain, Safety, Body Electronics, Chassis, and Telematics & Infotainment. The body electronics category dominates the market and is likely to maintain its dominance during the forecast period. The increasing need for vehicle body electronics and lighting systems to guarantee comfort and safety, the expanding use of adaptive headlights and effective body motor systems in cars, and other factors are all contributing to the expansion of this industry. Furthermore, because system-based chips are becoming more and more common in automobiles, they are utilized extensively in body control modules and gateways. Renesas introduced the ZSSC1750 in August 2022. It is a system-on-a-chip that features a dual-channel analog-to-digital converter for internal resistance monitoring and body electronics. In the near future, these factors are anticipated to accelerate the expansion of body electronics applications in the System Basis Chip market.
System Basis Chip Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Throughout the forecast period, North America is anticipated to hold the greatest share of the global market for system basis chips because of the region's high level of life and high per capita income; there is a greater demand for luxury cars with a high semiconductor content. Furthermore, the market is growing faster because of increased research and investment brought about by the presence of significant competitors in the region, such as Texas Instruments, Inc. and Atmel Corporation. The US is rapidly adopting electric vehicles, with 4 million EVs predicted for California by 2030, according to the Policyadvice Report 2021. These factors alter the prognosis for the System Basis Chip market in North American markets.
In addition, the system basis chip market is anticipated to expand at the fastest rate in the world during the projected period in Asia Pacific. The region boasts the best automotive center. The growing population in developing nations like China and India, the rising demand for automobiles, and rising disposable income are some of the factors propelling the growth of the regional market. Furthermore, several domestic producers of consumer electronics, particularly cell phones, significantly depend on foreign semiconductors. China has lessened its reliance on foreign chip suppliers by increasing local chip manufacture and making significant investments in the growth of its semiconductor industry. The Chinese government's "Made in China 2025" project intends to increase the country's self-sufficiency in vital technology like semiconductors. In addition to driving chip demand, China is a leader in emerging technologies, including artificial intelligence, the Internet of Things, driverless cars, and high-speed telecommunications infrastructure.
Key companies such as NXP Semiconductor NV, Infineon Technologies AG, Texas Instruments, Inc, STMicroelectronics NV, and others, are steadily increasing their investment in innovations and marketing around the world due to a continued focus on cost control, increased process efficiency, and structural adaptations that can somewhat alleviate the impact on earnings and probability. Additionally, strategic alliances are formed between system basis chip developers and manufacturers. Expanding the company's marketing reach, strengthening its technological capabilities, and upgrading its product offerings are all aimed at increasing its market share. Combining these businesses' strengths can result in creative solutions. Along with enhancing the product's functionality and performance, research and development are also carried out.
June 2023: The most recent single-chip central Ethernet switches from Marvell will be employed in a zone-based architecture for the next automobiles. Marvell Semiconductor unveiled new single-chip Ethernet switches that improve safety and enable software-defined services in cars of the future.
GLOBAL SYSTEM BASIS CHIP MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
NXP Semiconductor NV (Netherlands)
STMicroelectronics NV (Switzerland)
Infineon Technologies AG (Germany)
Texas Instruments, Inc (U.S.)
Atmel Corporation (U.S.)
Elmos Semiconductor AG (Germany
Microchip Technology Inc (U.S.)
Melexis Semiconductors (Belgium)
ON Semiconductor Corp (U.S.)
Robert Bosch GmbH (Germany)
Others