Automotive Transceivers Market Analysis

Automotive Transceivers Market Analysis

LIN protocol valued at USD 1 billion in 2017, has experienced a high popularity in the automotive transceivers market led by deployment in the body electronics applications that include mirrors, accessories, power seats, etc. The increasing requirements for high-end body electronics to be deployed in modern passenger and luxury cars are creating a demand for LIN interfaces. These components offer cost-effective and cheaper communications in several automobile applications, which do not require high versatility. As a result, LIN interfaces are integrated into low-cost applications over alternatives such as CAN and FlexRay, driving the market demand.

CAN protocols are increasingly being deployed in passenger and commercial vehicles due to their usage in body electronics, powertrain, chassis & safety applications. The innovations in the overall automobile electronics industry such as the development of self-driving technologies, alternative powertrain solutions, and rugged architectures will also bolster the demand for these components

Applications such as parking assistance, car security, etc., are witnessing the deployment of CAN interfaces in huge amounts owing to efficient communication provided between various ECUs. Moreover, manufacturers including Infineon Technologies, NXP Semiconductors, etc., are developing application-specific CAN interface solutions to be deployed in vehicle body parts, engine transmission systems, etc.

The powertrain automotive transceivers are anticipated to grow at a CAGR of over 4% from 2018 to 2024 impelled by need for low fuel consuming engines in modern vehicles. The increasing demand for low-emission and high-capacity engines across the global automobile industry is a major factor adding up to the utilization of CAN and FlexRay interfaces in the powertrain systems.

Moreover, the increasing production & consumption of EVs in the U.S., China, etc., has created a high demand for alternative powertrain solutions, further accelerating the market size. The industry players have developed several high-speed transceivers that are applicable in systems such as powertrain, chassis, and safety. For instance, NXP Semiconductors has introduced its multi-purpose CM0902 CAN transceivers that are applicable in various applications including automotive powertrain & safety, robotics, factory automation, etc.

Infotainment applications dominate the market share with around 35% on account of developments of multimedia, navigation, and advanced telematics solutions. The increasing focus on providing comfort and added vehicular connectivity through advanced infotainment systems contributes to the demand for these products.

Additionally, the auto suppliers have developed application-specific ECUs, creating a need for compatible transceiver components, further developing the market. The German automakers are increasingly consuming the infotainment systems and products due to development of luxury cars and innovations in these systems.

North America automotive transceivers market revenue is anticipated to reach USD 790 million by 2024 driven by development of automated mobility and driver assistance technologies in the automobile industry. The government regulations and policies in the U.S. that specify increased vehicle safety to support the reduction of road fatalities will contribute to industry growth.

Moreover, the stricter carbon dioxide emission policies for all industry verticals enforce OEMs to deploy electronic systems & components that comply with these regulations & legislation and support the low-pollution initiatives. These factors coupled with the increasing popularity of connected & innovative mobility solutions in the U.S. are contributing to industry expansion.

The Asia Pacific region dominates the industry with a revenue share of around 50% owing to presence of several automobile and electronic systems & component manufacturers in countries including China, Japan, South Korea, and India.