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Automotive Semiconductor Market Size, Share, Growth & Industry Analysis, By Component (Microcontrollers, Power Semiconductors, Analog Integrated Circuits, Sensors, Others), By Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial), By Application (Powertrain, Chassis, Safety, Body Electronics), and Regional Analysis, 2024-2031
Pages: 170 | Base Year: 2023 | Release: February 2025 | Author: Versha V.
Automotive semiconductors are specialized, high-performance electronic components tailored for use in vehicles, supporting various electronic systems such as advanced driver-assistance systems (ADAS) and autonomous driving capabilities.
The market comprises a wide range of devices, including microcontrollers for subsystem management, power semiconductors for efficient power management, analog integrated circuits for signal processing, and sensors for data acquisition.
The global automotive semiconductor market size was valued at USD 43.24 billion in 2023 and is projected to grow from USD 46.43 billion in 2024 to USD 80.75 billion by 2031, exhibiting a CAGR of 8.23% during the forecast period.
The global demand for automotive semiconductors is fueled by advancements in autonomous vehicles, the growing adoption of vehicle-to-everything (V2X) communication, and increasing vehicle complexity.
Major companies operating in the automotive semiconductor industry are Infineon Technologies AG, NXP Semiconductors, STMicroelectronics, Texas Instruments Incorporated., Renesas Electronics Corporation., Toshiba Electronic Devices & Storage Corporation, Semiconductor Components Industries, LLC, Robert Bosch GmbH, Analog Devices Inc., Micron Technology, Inc., Qualcomm Technologies, Inc., Siemens, Samsung, Intel Corporation, NVIDIA Corporation, and others.
The ongoing transformation of the automotive industry, characterized by the rise of autonomous driving and ADAS technologies, is boosting the demand for advanced semiconductor solutions. Powerful processors, AI accelerators, and GPUs are essential for handling the complex computational demands of these systems.
Automotive semiconductor manufacturers are investing in research and development to improve product design and incorporate fail-safe mechanisms to mitigate risks.
Market Driver
"EV Boom Fuels Demand for Automotive Semiconductors"
The growth of the automotive semiconductor market is propelled by the surging adoption of electric vehicles (EVs). These vehicles require a significantly higher number of semiconductors, including specialized power semiconductors such as SiC and GaN, to manage their complex electrical systems.
These components are essential for optimizing efficiency , maximizing range, and minimizing energy consumption. As global EV adoption accelerates, semiconductor companies have a significant opportunity to innovate and grow by developing specialized, high-performance solutions for this evolving market.
Market Challenge
"Increased Costs Due to Advanced Features"
Rising costs and complexities are presenting a major challenge to the expansion of the automotive semiconductor market. The advancement of features such as autonomous driving and connectivity necessitates more complex and costly semiconductor solutions.
Moreover, the rigorous testing and validation required for automotive-grade semiconductors to meet stringent safety standards add to these costs. To address these challenges, manufacturers are investing in advanced packaging technologies, such as system-in-package (SiP) and chiplet designs, to integrate multiple functionalities into smaller, more cost-effective solutions.
Market Trend
"Surging Adoption of Sustainable Practices in Manufacturing and Product Design"
Automotive semiconductor manufacturers are adopting sustainable practices to reduce their environmental impact while catering to the growing demands of consumers and investors. Companies are optimizing manufacturing processes to minimize energy consumption and waste through investments in energy-efficient equipment and technologies.
Furthermore, they are designing chips with lower power consumption to improve vehicle energy efficiency. Industry players are further demonstrating their commitment to sustainable material selection by incorporating recycled and bio-based materials in packaging and manufacturing processes.
Segmentation |
Details |
By Vehicle Type |
Passenger Vehicle, Light Commercial Vehicle (LCV), Heavy Commercial (HCV) |
By Component |
Microcontrollers (MCUs), Power Semiconductors, Analog Integrated Circuits (ICs), Sensors, Others |
By Application |
Powertrain, Chassis, Safety, Telematics & Infotainment, Body Electronics |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe | |
Asia Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific | |
Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
South America: Brazil, Argentina, Rest of South America |
Market Segmentation:
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
The Asia Pacific automotive semiconductor market accounted for the largest revenue share of 36.45% in 2023, valued at USD 15.76 billion. The region, home to major automotive manufacturing hubs in China, Japan, and South Korea, creates a strong demand for automotive semiconductors.
Furthermore, lower labor costs and well-established manufacturing infrastructure enhance cost-effeciency in vehicle production. The combination of large-scale production, strong supply chains, and government fosters a cobducive environment for foreign investment in the automotive and semiconductor sectors.
The Europe automotive semiconductor industry is anticipated to grow at a CAGR of 8.62% through the forecast period. The region is at the forefront of the global transition toward electric vehicles (EVs), bolstered by ambitious targets and supportive regulations that are boosting adoption.
This shift is creating a surge in demand for automotive semiconductors, as EVs require a significantly more semiconductor content compared to traditional internal combustion engine (ICE) vehicles. Furthermore, substantial investments in EV charging infrastructure across Europe are further fueling demand, presenting a significant growth opportunity for semiconductor companies in the region.
Regulatory Framework:
The global automotive semiconductor market is characterized by a large number of participants, including both established corporations and rising organizations. Autonomous driving technology is revolutionizing the automotive sector, creating new opportunities for semiconductor manufacturers.
Companies are responding to this trend by developing power semiconductors tailored to the unique demands of electric vehicles and autonomous systems. This includes a focus on miniaturization and efficiency through advanced packaging, as well as intensive R&D efforts in AI, sensor fusion, and high-speed connectivity.
Recent Developments (Acquisition/Partnership)