This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
Automotive White Paper, Vol.1, POWERED BY yole group – Drive the future
KEY TAKEAWAYS
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Formula for automotive success: speed, cost, and semiconductor focus, including semiconductor supply and vertical integration.
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In almost all regions of the world, Chinese OEMs (1) have double-digit year-over-year growth.
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Chinese EV industry – Major assets:
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More generous and consistent policy support than other regions
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Speed of vertical integration, down to the semiconductor level, including modules and SiC (2).
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ADAS focus:
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Cameras are well present with an 87% penetration rate by 2029.
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The LiDAR market is taking off; 1.6 million units shipped in 2024, with BYD, Li Auto, and Huawei shaking up the game.
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More ADAS features are pushing the industry to more centralization based on the ADAS ECU (3) and processors.
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Yole Group launches its first automotive White Paper, Vol. 1 — Part of the 2025 White Paper Collection. The automotive industry is undergoing a profound transformation. At the heart of it all? Semiconductors.
With this first automotive White Paper, Yole Group examines the current state of the industry, highlighting key innovations, challenges, and breakthroughs while exploring future developments. Leveraging their deep expertise in market trends and technology, analysts provide insights into the evolving automotive landscape and the next generation of vehicles.
“At Yole Group, we closely monitor these shifts, focusing on how semiconductor technologies enable new mobility functions. ADAS and electrification are becoming standard, laying the groundwork for fully autonomous & electric vehicles.”
Pierrick Boulay
Principal Analyst, Automotive Semiconductors, Yole Group“In the ongoing revolution, China plays a pivotal role. As a hub of innovation and manufacturing, the Chinese ecosystem is fueling both technological breakthroughs and market acceleration on a global scale, while also fostering the rise of its own automotive giants at all stages of the supply chain.”
Yu Yang
Principal Analyst, Automotive Semiconductors, Yole Group
In the face of this abrupt change, how are European and North American OEMs positioning themselves to remain competitive? What will the ripple effects be on the global semiconductor supply chain? How will standards be (re-)defined? And as vehicles become ever more connected and autonomous, how can the industry ensure data security and privacy across such a complex, international landscape?
A key strategic question is related to semiconductor device makers: the Chinese car OEMs have a supply strategy to increase, car model by car model, Chinese sourcing of semiconductor devices. So, they are replacing their existing global suppliers, including Infineon Technologies, NXP, STMicroelectronics, TI, Renesas, and onsemi… to name just the largest ones, with Chinese companies.
This is a dramatic shift for the non-Chinese IDMs. Some, like STMicroelectronics, are building a dedicated strategy to become Chinese in China. However, a similar strategy is clearly needed for each of these companies.
Today, Yole Group is pleased to introduce its first Automotive White Paper, marking the launch of a Yole Group 2025 Collection. Analysts invite you to explore the insights within and stay tuned for the soon-to-be-released upcoming editions, including a second automotive volume, dedicated to the automotive semiconductor companies and their strategy.
WEBINAR SERIES – Powered by Yole Group
To celebrate the release of our Automotive White Paper, the first in the Yole Group 2025 Collection, we invite you to a two-part webinar series exploring the groundbreaking semiconductor technologies shaping the future of transportation.
Reserve your spot for both webinars: June 19 – September 25.
And let Yole Group’s analysts be your guide in navigating this new era of automotive semiconductors innovation!
Stay tuned on yolegroup.com.
Acronyms
(1) Original Equipment Manufacturer
(2) Silicon Carbide
(3) Electronic Control Unit
