System Basis Chip Market - Forecast(2024 - 2030)

Report Code: ESR 0411 Report Format: PDF + Excel

System Basis Chip Market Overview

The System Basis Chip Market size is estimated to reach $32 billion by 2027, growing at a CAGR of 10.5% during the forecast period 2022-2027. The market growth is attributed to the increasing vehicle production, the rising trend toward electric vehicles & automated guided vehicles, the growing demand for advanced safety & convenience systems in vehicles and so on. System Basis Chip is widely used in the control modules of sport utility vehicles & multi-utility vehicles. Additionally, government mandates to reduce vehicular emissions and rising environmental concerns create numerous opportunities for the integration of system basis chips in vehicles to increase power efficiency and reduce greenhouse gas emissions. Such factors are set to transform the System Basis Chip industry outlook in the coming time.

System Basis Chip Report Coverage

The “System Basis Chip Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the System Basis Chip Market.

By Functionality: Voltage Regulation, Diagnostic & Supervision, Drivers & Switches, Watch Dog functions (fault detecting mechanism), Wake Up Logic (low energy consumption mechanism), Power Switches and Others.
By Current:150mA,  250mA and 500mA.
By Transmission Rate: 2 MBit/s, 5 MBit/s and Others
By Vehicle Type: Passenger Car, Commercial Vehicles (Light Commercial Vehicles and Heavy Commercial Vehicles), Utility Vehicles (Sports Utility Vehicles and Multi-utility vehicles), Automated Guided Vehicles and Autonomous Vehicles.
By Application: Powertrain, Safety, Body Electronics, Chassis, Telematics & Infotainment, Power & Sensor Control, Wireless Charging and Others.
By Geography: North America (the US, Canada and Mexico), Europe (the UK, Germany, France, Italy, Spain and Others), APAC (China, Japan India, South Korea, Australia and Others), South America (Brazil, Argentina and Others) and RoW (the Middle East and Africa).

Key Takeaways

  • Heavy Commercial Vehicle market is analyzed to grow at the fastest rate during the forecast period 2022-2027, due to the rising trend towards commercial activities, government regulations for vehicle safety environmental norms and so on.
  • System Basis Chip Market for body electronics is analyzed to grow with the highest CAGR during 2022-2027, owing to the rising demand for vehicle body electronics & lighting systems, growing adoption of adaptive headlights & efficient body motors systems and so on.
  • North America dominated the System Basis Chip Market in 2021. It is because of the rising demand for premium cars, increasing adoption of sport utility vehicles, multi-utility vehicles & automated guided vehicles and other factors.
  • Growing demand for raising comfort & vehicle safety standards and government mandates to reduce vehicular emissions & rising environmental concerns are analyzed to significantly drive the growth of the System Basis Chip Market during the forecast period 2022-2027.

System Basis Chip Market Value Share, by Region, 2021 (%)

System Basis Chip Market

For More Details On this report - Request For Sample


System Basis Chip Market Segment Analysis - by Vehicle Type

The Heavy Commercial Vehicle market is analyzed to grow at the fastest rate of 11.6% during the forecast period 2022-2027. This is due to the rising trend towards commercial activities like logistics, distribution & public transportation, government regulations for vehicle safety in combination with environmental norms and other factors. Additionally, system basis chips provide high integration, high performance and increased reliability at an optimized system cost resulting in their increased application in HCV. In July 2021, Microchip launched ATA663331, a new generation of system basis chip with LIN transceiver, designed to handle low-speed data communication in heavy vehicles. Such factors are accelerating the growth of the heavy commercial vehicles segment within the System Basis Chip industry over time.

System Basis Chip Market Segment Analysis - by Application

System Basis Chip Market for body electronics is analyzed to grow with the highest CAGR of 12.3% during 2022-2027. Factors attributing to this market growth include the rising demand for vehicle body electronics & lighting systems to ensure comfort & safety, the growing adoption of adaptive headlights & efficient body motors systems in vehicles and so on. Additionally, system basis chips are widely used in body control modules and gateways due to their increasing adoption in vehicles. In August 2022, Renesas launched the ZSSC1750, a system basis chip with a dual-channel analog to digital converter for body electronics & internal resistance monitoring. These factors are expected to boost the growth of body electronics applications within the System Basis Chip industry in the coming time.

System Basis Chip Market Segment Analysis - by Geography

North America dominated the System Basis Chip Market with a share of 36% in 2021, attributed to the rising demand for premium cars with high comfort & safety standards, increasing adoption of sport utility vehicles, multi-utility vehicles & automated guided vehicles and so on. Additionally, increasing research & investment due to the presence of major market players, namely Atmel Corporation and Texas Instruments, Inc., in the region is accelerating the market growth. According to Policyadvice report 2021, there is a rapid adoption of electric vehicles in the US, with Californians expected to see 4 million EVs by 2030. These factors transform the System Basis Chip industry outlook in North American markets.

System Basis Chip Market Drivers

Growing Demand for Raising Comfort & Vehicle Safety Standards:

Increasing demand for vehicles equipped with advanced mechanisms like battery management systems, electric power steering and transmission control is accelerating the market growth. System basis chips are used in automated guided vehicles to ensure predictive response and to customize device behavior. They increase convenience & comfortable by enabling high-speed communication and telematics. These chips are used in telematics & infotainment systems to monitor blind spots and analyze data to ensure passenger safety. According to a 2021 Forbes report, 55% of consumers prefer buying cars with front & rear parking sensors and 60% prefer buying cars with blind-spot monitoring. Suggesting that there is a growing demand for premium vehicles. In June 2022, NXP launched S32Z & S32E processors with FS86 ASIL system basis chips to ensure driver safety. These factors would help in expanding the System Basis Chip Market size.

Government Mandates to Reduce Vehicular Emissions in Addition to Rising Environmental Concerns:

Government initiatives towards reducing vehicle emissions combined with rising environmental issues are boosting market growth for System Basis Chips. In vehicles, system-based chip applications ensure power savings & long battery life by fueling microcontrollers and assisting DC/DC switching regulators in improving energy efficiency. Furthermore, when the vehicles are in sleep mode, the system basis chip serves to perform periodic battery discharge rate measurements. Thus, system basis chips are widely used in wakeup & watchdog timers to ensure power-saving, thereby encouraging the adoption of electric vehicles to ensure zero vehicular emission. In August 2021, Onsemi launched NCV7471, a system basis chip that monitors the power supplies in application microcontrollers and other components to ensure significant energy savings in EVs. Also, the UK government passed a resolution in 2020 to reduce carbon emissions to zero by 2050 by encouraging the adoption of electric vehicles, resulting in the increased adoption of system basis chips. Such factors are elevating the growth of the System Basis Chip Market size.

System Basis Chip Market Challenges

High Costs Related to Complex Circuit Designs and Integration of Varied Components:

High costs associated with complex circuit designs and component integration are impeding the growth of the System Basis Chip Market. The initial cost of designing and developing system basis chips is very high since they contain multiple functions of automotive electronic control units on a single chip. Integrating all systems on a single system basic chip increases complexity as it includes mixed signal components. In addition, these chips incorporate a combination of digital standard functionality like communication bus interfaces & analog which further complicates their development, resulting in their increased cost. According to Tanotis, the cost of a system basis chip ranges somewhere between $300 and $500. Such a high cost of chips is restricting their adoption and the growth of the System Basis Chip industry.

System Basis Chip Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the System Basis Chip Market. The top 10 companies in the System Basis Chip Market are:

  1. Atmel Corporation
  2. Elmos Semiconductor AG
  3. Infineon Technologies AG
  4. Melexis NV
  5. Microchip Technology, Inc.
  6. NXP Semiconductors NV
  7. ON Semiconductor Corporation
  8. Robert Bosch GmbH
  9. STMicroelectronics NV
  10. Texas Instruments, Inc.

Recent Developments

  • In July 2022, STMicroelectronics collaborated with CARIAD to develop advanced automotive System Basis Chips to ensure connectivity and energy management.
  • In December 2021, NXP Semiconductors launched an embedded software driver fitted with an FS8600 System Basis Chip for communication abstraction & watchdog settings in vehicles.
  • In July 2021, Infineon launched lite and mid-range System Basis Chips, supporting ISO CAN FD protocol for communication at 5 Mbit/s in automobiles.

Relevant Report Titles:

Chip Antenna Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0428

Flip Chip Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0201

4G Smart Device Chip Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0730

For more Electronics Market reports, please click here

1. System Basis Chip Market - Market Overview
    1.1 Definitions and Scope
2. System Basis Chip Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by Application
    2.3 Key trends segmented by geography
3. System Basis Chip Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. System Basis Chip Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Framework Overview
    4.2 New Business and Ease of Doing business index
    4.3 Case studies of successful ventures
    4.4 Customer Analysis
5. System Basis Chip Market – Startup Company Scenario (Premium)
    5.1 Investment Analysis
    5.2 Venture Capital Funding Scenario
6. System Basis Chip Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. System Basis Chip Market – By Strategic Analysis (Market Size - $Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product/Market Life Cycle
8. System Basis Chip Market - by Functionality
    8.1 Voltage Regulation
    8.2 Diagnostic & Supervision
    8.3 Drivers & Switches
    8.4 Watch Dog functions
    8.4.1 Fault-detecting mechanism
    8.5 Wake Up Logic
    8.5.1 Low energy consumption mechanism
    8.6 Power Switches
    8.7 Others
9. System Basis Chip Market - by Current
    9.1 150mA
    9.2 250mA
    9.3 500mA
10. System Basis Chip Market - by Transmission Rate
    10.1 2 MBit/s
    10.2 5 MBit/s
    10.3 Others
11. System Basis Chip Market - by Vehicle Type
    11.1 Passenger Car
    11.2 Commercial Vehicles
        11.2.1 Light Commercial Vehicle
        11.2.2 Heavy Commercial Vehicle
    11.3 Utility Vehicles
        11.3.1 Sports Utility Vehicles
        11.3.2 Multi-utility vehicles
    11.4 Automated Guided Vehicle
    11.5 Autonomous Vehicles
12. System Basis Chip Market - by Application
    12.1 Powertrain
    12.2 Safety
    12.3 Body Electronics
    12.4 Chassis
    12.5 Telematics & Infotainment
    12.6 Power & Sensor Control
    12.7 Wireless Charging
    12.8 Others
13. System Basis Chip Market - by Geography (Market Size - $Million/Billion)
    13.1 North America
        13.1.1 The US
        13.1.2 Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 The UK
        13.2.2 Germany
        13.2.3 France
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Others
    13.3 APAC
        13.3.1 China
        13.3.2 Japan
        13.3.3 India
        13.3.4 South Korea
        13.3.5 Australia
        13.3.6 Others
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Others
    13.5 RoW
        13.5.1 The Middle East
        13.5.2 Africa
14. System Basis Chip Market – Entropy
15. System Basis Chip Market - Industry Competition Landscape (Premium)
    15.1 Global Market Share
    15.2 Market Share by Region
    15.3 Market Share by Application
16. System Basis Chip Market - Key Company List by Country Premium (Premium)
17. System Basis Chip Market Company Analysis
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10 Company 10
* "Financials would be provided to private companies on best-efforts basis."
Connect with our experts to get customized reports that best suit your requirements. Our reports include global-level data, niche markets and competitive landscape.