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System Basis Chip Market

Advances in Technology and Growing Demand for Automobiles will Spur Market Growth

System Basis Chip is Segmented by Vehicle type and Further Sub-segment into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Autonomous Vehicles, Automated Guided Vehicles Market - Forecast from 2023 to 2033

System Basis Chip Market Outlook (2023 to 2033)

According to PMR’s estimates, the global basis chip market will reach US$ 28.4 billion in 2023. By 2033, the market for system basis chips will reach US$ 62 billion, growing at an annual rate of 8.1%.

ADAS, automated driving, infotainment systems, and vehicle connectivity are some of the various applications that are increasingly dependent on chips in the automotive industry. This rapidly growing market presents chip manufacturers with opportunities to cater to safety, reliability, and power efficiency considerations.

A SoC integrates many functions for a single device, including processors, memory, graphics, and communication interfaces. A compact design, reduced power consumption, and improved performance are all advantages of this approach. IoT devices, mobile devices, and automotive electronics are particularly reliant on SoC integration.

Power management functions are performed by basis chips in body electronics. In addition to regulating and distributing power efficiently, they also prolong battery life and optimize energy consumption. With increasing connectivity, electrification, and autonomy, body electronics systems become more complex and sophisticated, necessitating more chips to enable these functions.

Report Attributes Details

System Basis Chip Market Size (2023)

US$ 28.4 billion

System Basis Chip Projected Market Value (2033)

US$ 62 billion

North America Market Growth Rate (2023 to 2033)

24.2%

United Kingdom Growth Rate (2023 to 2033)

6.5% CAGR

Japan Market Growth Rate (2023 to 2033)

8.4% CAGR

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2018 to 2022 System Basis Chip Sales Analysis Compared to Demand Forecast from 2023 to 2033

Between 2023 and 2033, PMR predicts a CAGR of 8.1% for the global system basis chip market. From 2018 to 2022, the market experienced a CAGR of 9%. As chip systems evolve, heterogeneous computing that combines CPUs, GPUs, and energy-efficient accelerators may become more commonplace. Tasks can be offloaded to the most appropriate processing unit, improving the performance of the overall system.

Data-intensive applications, such as scientific research, simulations, and data analysis, require high-performance computing chips. The development of multicore processors, heterogeneous computing, and specialized accelerators has led to improved performance and energy efficiency in supercomputers and data centers.

The application of quantum computing to complex problems has significant potential, even though it is still in its infancy. Companies and research institutions are developing quantum chips, known as qubits. Cryptography, drug discovery, optimization, and material science could all be revolutionized by advances in quantum chip technology.

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How is the Market Demand for System Basis Chips Expected to Grow?

Technological advancements in AI and Security will Boost Sales of System Basis Chips

Cybersecurity becomes increasingly important as technology advances. Security features at the hardware level will likely be incorporated into future basis chip systems to protect them from attacks. As a means of safeguarding data and maintaining system integrity, hardware-based encryption, isolated systems, and secure enclaves may be employed.

Vehicle production across the globe has been a major factor driving market growth, along with electronic equipment in vehicles. Automobiles are becoming more sophisticated and require more safety, convenience, and comfort features, which are driving the demand for system basis chips (SBCs). As hybrid and electric vehicle sales rise over the forecast period, new opportunities will open up for system basis chips (SBC).

Advanced semiconductor products are in high demand across all markets as miniaturization and integration of electronic devices continue to rise. Embedded devices and the Internet of Things (IoT) are also driving the SBC market. As AI applications grow, chips optimized for AI workloads have become more and more popular. ASICs and GPUs are among the types of AI chips that provide enhanced performance and energy efficiency for things like natural language processing and computer vision.

Edge computing has been influenced by the proliferation of the Internet of Things devices and the need to process data in real time. Devices at the edge require high-performance, low-power chips that can handle data processing and analytics locally. The chip manufacturers are developing solutions to meet the demands of edge computing by balancing computational capabilities with energy efficiency.

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Country-wise Insights

How Does the Proliferation of System Basis Chips in the United States Affect the Industry?

Growth of Electronic Industries in the United States to Grow Demand for SBC in the Market

A significant amount of system basis chip adoption is expected in United States markets. In the United States, the market for system basis chips is expected to reach US$ 8.7 billion by 2033. A compound annual growth rate of 6.9% is expected for the United States between 2023 and 2033.

A strong technology industry and advanced manufacturing capabilities have made the United States a significant demand for basis chips, also known as semiconductors. In addition to computers, smartphones, automobiles, and a wide range of consumer electronic products, basis chips are essential components.

Basis chips are in demand in the United States because domestic electronics are being produced, major technology companies are being established, and emerging technologies like artificial intelligence (AI), IoT, and 5G networks are becoming more common. Chips are also consumed in large quantities by the automotive industry in the United States.

How does the Chinese Market for System Basis Chips Look?

Growing Number of Government Initiatives will Boost Market Growth for SBC Market

Persistence Market Research reports that China's system basis chip sales will reach US$ 16.3 billion by 2033. It is estimated that the Chinese market will grow by 9.6% between 2023 and 2033. China's domestic electronics industry, government initiatives to boost the semiconductor industry, and massive electronics manufacturing industry drive the country's demand for basis chips. The Chinese chip market has experienced rapid growth in recent years.

Several consumer electronics manufacturers in the country rely heavily on imported semiconductors, including smartphones. Increasing local chip production and investing heavily in developing China's domestic semiconductor industry has helped China reduce its dependence on foreign chip suppliers. "Made in China 2025", an initiative launched by the Chinese government, aims to boost the nation's self-sufficiency in critical technologies like semiconductors. Besides focusing on emerging technologies such as artificial intelligence, the Internet of Things, autonomous vehicles, and high-speed telecommunications infrastructure, China also drives chip demand.

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Category-wise Insights

Which Vehicle Type is Driving the Demand for System Basis Chip Market?

Growing Sales of Passenger Vehicle to Increase Demand in Coming Years

The system basis chip market is expected to be dominated by passenger vehicles. It is predicted that the market for this segment will grow by 8% over the next few years. According to historical projections, the economy will grow 8.8% between 2018 and 2022.

Vehicles' fuel efficiency is improved by using basis chips to optimize energy consumption. Energy recovery systems, hybrid vehicle components, and power management systems use them. Chips like these contribute to reduced emissions and improved sustainability by regulating power flow, managing batteries, and operating appliances in an energy-efficient manner. As automotive technology advances, safer and more convenient features become necessary, and consumers demand more connectivity and advanced functions in their vehicles, the demand for system basis chips is growing.

Communication between the vehicle and external networks is enabled by basis chips in-vehicle telematics. In addition to tracking vehicles, remote diagnostics, emergency assistance, and over-the-air software updates, they enable a variety of features. As a result of these chips, drivers, and passengers will benefit from enhanced vehicle functionality and valuable services provided by cellular networks and GPS.

What Application will Likely Drive Market Demand for System Basis Chips?

Body Electronics is Expected to Increase Demand for System Basis Chips.

The body electronics segment is expected to grow at a CAGR of 7.9% by 2033, according to PMR. Modern vehicles increasingly integrate electronic systems, leading to the demand for basis chips in body electronics. Headlights, taillights, turn signals, and interior lighting are all controlled by basis chips in body electronics.

Power supply and brightness levels are controlled by these chips, ensuring that the lights operate efficiently and safely. Therefore, the market for system basis chips is expected to grow. HVAC (heating, ventilation, and air conditioning) systems are regulated and controlled by electronic control units (ECUs). With these chips, the temperature can be controlled precisely, fan speeds can be modulated, and the air is distributed throughout the cabin of a vehicle.

Communication and infotainment systems in vehicles rely heavily on basis chips. Chips like these facilitate Bluetooth, Wi-Fi, and GPS connectivity. Furthermore, integrating external devices like smartphones and media players is possible with their support for audio processing and touchscreen interfaces.

Competitive Landscape

The manufacturers and developers of system basis chips form strategic partnerships. A larger market share is the goal of expanding the company's marketing presence, improving technology capabilities, and enhancing its product offerings. Innovative solutions can be developed by combining the strengths of these companies.

Research and development are conducted in addition to improving the product's functionality and performance. Companies often launch new products in order to gain an edge over their competitors.

  • In June 2023, Hilscher's global channel partners will be able to offer industrial automation solutions with maximum interconnectivity, based on the latest netX 90 System-on-Chip (SoC). Through the range, automation vendors can launch new or enhanced products that support CC-Link Field Basis, a technology that can connect a wide array of devices from a variety of vendors.
  • In June 2023, Marvell's latest single-chip central Ethernet switches will be used in a zone-based architecture for vehicles being developed. Marvell Semiconductor introduced new single-chip Ethernet switches, which can support software-defined services in next-generation vehicles and enhance safety.

System Basis Chip Industry Report Scope

Attribute Details

Forecast Period

2023 to 2033

Historical Data Available for

2018 to 2022

Market Analysis

US$ billion for Value

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • Singapore
  • Thailand
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa
  • Israel

Key Market Segments Covered

  • Vehicle Type
  • Application
  • Region

Key Companies Profiled

  • NXP Semiconductors N.V.
  • Infineon Technologies
  • Texas Instruments Incorporated
  • Robert Bosch GmbH
  • STMicroelectronics N.V.
  • Onsemiconductor Corp.
  • Microchip Technology
  • Melexis N.V.
  • Elmos Semiconductor AG.

Pricing

Available upon Request

System Basis Chip Market Outlook by Category

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Autonomous Vehicles
  • Automated Guided Vehicles

By Application

  • Power Train
    • Engine Control Module
    • Hev/Ev Motor
    • Transmission
  • Safety
    • Airbags
    • Electronic Stability Control
    • Adaptive Cruise Control
    • Night Vision
    • Tire Pressure Monitoring System
    • Parking Assistance
  • Body Electronics
    • Body Control Modules
    • Door Control Unit
    • Led Lighting
    • Mirror & Window Control
    • Hvac System
  • Chassis
    • Brake Control Module
    • Steering Control Module
    • Suspension Control Module
    • Traction Control Module
    • Vehicle Dynamics Management
  • Telematics & Infotainment
    • Dashboards
    • Navigation
    • Connectivity Devices
    • Audio-Video Systems

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • NXP Semiconductors N.V.
  • Infineon Technologies
  • Texas Instruments Incorporated
  • Robert Bosch GmbH
  • STMicroelectronics N.V.
  • Onsemiconductor Corp.
  • Microchip Technology
  • Melexis N.V.
  • Elmos Semiconductor AG

- Frequently Asked Questions -

According to estimates, the global system basic chip market was worth US$ 26.1 billion by 2022.

System basic chips are expected to generate US$ 28.4 billion in sales by 2023.

Globally, the market for system basic chips is projected to grow by US$ 62 billion by 2033.

The system basic chip market is expected to grow at a CAGR of 8.1% during the forecast period.

System basic chip growth increased by 9% CAGR from 2018 to 2022.

Body electronics is expected to dominate the basic chip market and grow at a CAGR of 7.9% by 2033.

The system basic chip market in South Korea is expected to grow at a CAGR of 8.6% over the forecast period.

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