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.
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 (%)
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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:
- Atmel Corporation
- Elmos Semiconductor AG
- Infineon Technologies AG
- Melexis NV
- Microchip Technology, Inc.
- NXP Semiconductors NV
- ON Semiconductor Corporation
- Robert Bosch GmbH
- STMicroelectronics NV
- 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:
Report
Code: ESR 0428
Report
Code: ESR 0201
Report
Code: ESR 0730
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