Automotive Semiconductor Market Size, Share, and Trends 2024 to 2034

The global automotive semiconductor market size was estimated at USD 48.52 billion in 2022 and is expected to hit over USD 115.78 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 11.5% from 2022 to 2030.

Key Takeaway:

• The Asia-Pacific automotive semiconductor market is expected to grow at a CAGR of 10.7% from 2022 to 2030.
• The processor segment was valued at $8.2 billion in 2021.
• The light commercial segment is poised to grow at CAGR of 12.7% between 2022 to 2030.
• The electric engine segment is expected to reach at a CAGR of 11.4% between 2022 to 2030.
• The telematics & infotainment segment is expanding at a highest CAGR of 12.5% from 2022 to 2030.

Production, manufacturing and investment data Automotive Semiconductor Market

• In the first half if 2022, new passenger cars in China were equipped with 24,700 LiDAR sensors.
• Infineon, one of the largest automotive semiconductor manufacturers generated revenue of 14,218 million Euros (almost 45% of the total revenue) only from the automotive sector in 2022. The company generated 37% of its total revenue from China.
• In 2022, Infenion also planned to invest 5 billion Euros in new manufacturing plant in Germany to boost the production of mixed-signal and power semiconductors.
• STMicroelectronics in 2023 announced that the company is investing $4.0 billion in capital expenditures to improve its semiconductor manufacturing capacity.
• The Semiconductor Equipment Association of Japan stated that the country will witness a stable 5% growth in semiconductor sales in 2024.
• NXP Semiconductors, the world’s leading semiconductor manufacturer stated in its annual report, the revenue from the automotive sector for the company increased by 25.2% and reached $6,879 million in 2022. NXP offers semiconductors to multiple end-users from automotive to IoT. The company generated its highest revenue from the automotive end-user in 2022.
• World’s largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC) stated that the company is investing in development and manufacturing of advanced chips for automotive sector, the chips will be available for distribution from 2025.
• Bengaluru-based Elest invested $6.7 billion in 2022 for setting up electronic chip and display manufacturing plant in Karnataka. The company has received fiscal support of $2.7 billion from the Indian government.
• The Indian government has recently announced to boost its manufacturing capacity for semiconductors. The government has also launched a program ‘Semicon’ to promote the production of semiconductors in the country with an outlay of Rs.76,000 crore.

Growth Factors

The semiconductors are a sort of electrical component with the ability to conduct electricity under particular conditions. The semiconductors are employed in vehicles to ensure that the connected component performs well under all circumstances. The primary components of semiconductors used in automobiles are germanium and silicon, which are required for the proper operation of automotive electronics. The semiconductors in vehicles assist in a variety of functions, including managing the vehicle’s air conditioning system and assuring the vehicle’s safety.

The semiconductors enable the majority of automotive advancements, modern automobiles include features such as mobile phone integration, heads-up displays, autonomous driving aids, comfort and performance, all of which require semiconductor assistance. Furthermore, advancements in vehicle-based technology, such as the introduction of advanced driver assistance systems, infotainment, and telematics, as well as a greater willingness to adopt electric vehicles, all contribute to the global growth of the automotive semiconductor industry.

Automotive Semiconductor Market Scope

With the introduction of numerous technologies in the industry, such as 3-dimensional mapping applications, the arrival of electric vehicles, automobile automation, and many others, the automobile industry has changed significantly in the last few years. This has boosted demand for advanced semiconductors including memory devices, sensors, integrated circuits, and among other things.

The rapid advancements in the automotive sector, rising demand for safety features in automobiles, and the implementation of innovative technologies for advanced user interface fuel the automotive semiconductor market’s global expansion. Furthermore, factors like as operational failures in extreme climatic conditions, a complex structure, and high costs acts as barriers to the automotive semiconductor market’s global growth during the forecast period.

However, factors such as rising demand for electric and hybrid vehicles, as well as increased technological improvement and innovation in advanced driver assistance systems, would provide sufficient potential for the automotive semiconductor market expansion throughout the forecast period.

Furthermore, for consumers used to great user experiences, connected vehicles are essential drivers. As a result of these expectations, infotainment systems have evolved from networked, upgradeable, and integrated platforms, requiring the latest technological semiconductors in the market. As a result, the automotive semiconductor market is expected to benefit from the future of linked and autonomous vehicles.

The expansion of the automotive semiconductor market is strongly connected to the growth of the automobile sector. The most important element driving the automotive semiconductor market is the rising demand for automotive semiconductors, which is fueled by increased automobile manufacturing. Other factors driving the growth of the semiconductor content in automobiles include the expanding trend of vehicle electrification and the growing need for sophisticated convenience, safety, and comfort systems.  

Thus, in the projected period, key factors such as rising vehicle production, the rising trend of vehicle electrification, and rising demand for advanced comfort, safety, and convenience systems are expected to propel the global automotive semiconductor market. The rise in overall vehicle costs, on the other hand, could be a significant impediment to the automotive semiconductor market’s growth in the upcoming years.

Component Insights

The discrete power segment dominated the automotive semiconductor market in 2022 with revenue share of 29%. The automotive sector has a high need for semiconductors across all component types. These components aid in the networking, electrification, and sharing of mobility services of vehicles. 

The memory segment is fastest growing segment of the automotive semiconductor market in 2022. This is attributed to the continuing electrification of major automotive applications such as the powertrain, which is driving up demand for power components.

Vehicle Type Insights

The passenger vehicles segment has accounted 67% revenue share in 2022. The strong demand for passenger automobiles around the world is responsible for the growth of the segment.

The light commercial vehicle segment is fastest growing segment of the automotive semiconductor market in 2022. The growth of light commercial vehicles is likely to be fueled by rapid urbanization, improvements in road infrastructure, regulatory frameworks for purchasing commercial vehicles, and the expansion of e-commerce channels.

Application Insights

In 2022, the body electronics segment has generated 24% revenue share in 2022.

More demand for semiconductor components in safety applications is being driven by stringent regulations and standards.

The telematics & infotainment segment, on the other hand, is predicted to develop at the quickest rate in the future years. The automobile manufacturers are increasingly using semiconductor components for telematics and infotainment applications as a result of increasing competition among vehicle manufacturers to deliver improved convenience and comfort to their customers.

Region Insights

Europe has accounted revenue share of 29%. The automobile manufacturers are constantly focused on creating, innovating, and developing autonomous vehicles, which have attracted a sizable percentage of buyers in key automotive manufacturing countries.

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. Due to the expansion of the automotive sector, particularly in emerging economies, the region is expected to be the fastest growing market over the projected period. Furthermore, the booming e-commerce business is expected to boost demand for commercial vehicles in the future years.

Key Developments

• NXP Semiconductors announced the S32K3 microcontroller family, a new addition to its S32K product range, in November 2020. The S23K3 family was created to address the needs of growing zone controllers, battery management, and automotive body electronics.
• NXP Semiconductors announced the availability of a comprehensive Wi-Fi 6 portfolio in April 2020, greatly increasing the number of products and markets that can implement the most recent Wi-Fi standards.
• STMicroelectronics released the first STM32L5 microcontroller for internet of things in March 2020, with ultra-low power consumption and data security.
• ROHM announced the development of new SerDes ICs and PMICs for automobile satellite cameras in September 2021, primarily to assist Advanced Driver Assistance Systems. These devices will assist in Advanced Driver Assistance Systems module compactness, low electromagnetic, and low power consumption.
• STMicroelectronics announced collaboration with startup Autobahn in July 2021, Autobahn’s relationship includes key automobile brands and vendors, and with STMicroelectronics’ semiconductor support, the main focus will be on smart mobility for electric and smart connected driving vehicles.

The top players’ effective business strategies are included in this study of the automotive semiconductor market. To compete in the automotive semiconductor market, vendors are employing growth methods such as promoting their product offers through a clear and unique value proposition.

Automotive Semiconductor Market Companies

• Robert Bosch GmbH
• NXP Semiconductors N.V.
• Texas Instruments Inc.
• Analog Devices Inc.
• ON Semiconductor Corporation
• Renesas Electronics Corporation
• Infineon Technologies AG
• STMicroelectronics N.V.
• ROHM Co. Ltd
• Toshiba Corporation

Segments Covered in the Report

By Component

• Processor
• Discrete Power
• Sensor
• Memory
• Others

By Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By Fuel Type

• Gasoline
• Diesel
• Electric/Hybrid Electric Vehicle (EV/HEV)

By Application

• Chassis
• Powertrain
• Safety
• Telematics & Infotainment
• Body Electronics

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Philippines
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa