Automotive Semiconductor

Automotive Semiconductor

Global Automotive Semiconductor Market to Reach US$77.0 Billion by 2030

The global market for Automotive Semiconductor estimated at US$54.8 Billion in the year 2023, is expected to reach US$77.0 Billion by 2030, growing at a CAGR of 5.0% over the analysis period 2023-2030. Body Electronics Application, one of the segments analyzed in the report, is expected to record a 5.0% CAGR and reach US$20.5 Billion by the end of the analysis period. Growth in the Telematics & Infotainment Application segment is estimated at 5.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$14.5 Billion While China is Forecast to Grow at 7.5% CAGR

The Automotive Semiconductor market in the U.S. is estimated at US$14.5 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$17.0 Billion by the year 2030 trailing a CAGR of 7.5% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.7% and 4.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Automotive Semiconductor Market - Key Trends and Drivers Summarized

How Have Semiconductors Become the Backbone of Automotive Innovation?

Automotive semiconductors have emerged as the crucial technology driving the rapid evolution of modern vehicles, transforming them from mere mechanical devices into sophisticated, connected machines. These tiny chips are integral to virtually every aspect of a vehicle’s operation, from basic functions like engine control and power management to advanced features such as infotainment systems, driver assistance technologies, and autonomous driving capabilities. The automotive industry’s shift towards electric vehicles (EVs) and hybrid systems has further amplified the importance of semiconductors, as these vehicles rely heavily on high-performance chips for battery management, power conversion, and efficient energy use. Additionally, the integration of sensors, connectivity modules, and artificial intelligence (AI) into vehicles has exponentially increased the demand for advanced semiconductors, making them the backbone of the ongoing transformation in automotive technology. As a result, the semiconductor content per vehicle has been steadily rising, with high-end vehicles now containing thousands of semiconductors, underscoring their critical role in the future of mobility.

Why Is the Demand for Automotive Semiconductors Skyrocketing?

The surge in demand for automotive semiconductors is being driven by several converging trends in the automotive sector. Firstly, the transition to electric and hybrid vehicles has significantly increased the need for power electronics, microcontrollers, and sensors, all of which are powered by semiconductors. These components are essential for managing the complex electrical systems in EVs, ensuring safety, efficiency, and performance. Secondly, the advent of advanced driver assistance systems (ADAS) and autonomous driving technologies has created an insatiable demand for high-performance semiconductors capable of processing large amounts of data in real time. These systems rely on semiconductors to enable functionalities such as collision detection, lane-keeping, and adaptive cruise control, making them indispensable for the next generation of vehicles. Moreover, the growing consumer demand for enhanced in-car experiences, including advanced infotainment systems, connectivity, and smart features, has further fueled the semiconductor market, as these features require sophisticated processing and communication capabilities.

What Are the Technological Innovations Shaping the Automotive Semiconductor Landscape?

Technological advancements in semiconductor design and manufacturing are playing a pivotal role in shaping the future of the automotive industry. Innovations such as System-on-Chip (SoC) architectures, which integrate multiple functions onto a single chip, have been particularly impactful, enabling more compact and efficient solutions for automotive applications. These SoCs are now central to the development of complex systems like ADAS and infotainment, where they help to reduce power consumption and improve performance. Additionally, the evolution of semiconductor materials, such as the adoption of wide-bandgap materials like silicon carbide (SiC) and gallium nitride (GaN), has opened new possibilities for power electronics, especially in electric vehicles. These materials offer superior efficiency and thermal performance compared to traditional silicon, making them ideal for high-voltage applications in EVs. Furthermore, advancements in semiconductor fabrication techniques, such as the move towards smaller process nodes, are enabling higher transistor densities and more powerful chips, which are critical for meeting the increasing computational demands of modern vehicles.

What Is Driving the Growth in the Automotive Semiconductor Market?

The growth in the automotive semiconductor market is driven by several factors that reflect the broader transformation of the automotive industry. A key driver is the accelerating adoption of electric vehicles, which require significantly more semiconductor content than traditional internal combustion engine vehicles. The increasing complexity and performance requirements of EVs, particularly in battery management and powertrain control, are fueling demand for advanced semiconductors. Moreover, the rapid development of autonomous driving technologies is another major growth driver, as these systems depend on high-performance semiconductors to process vast amounts of data from sensors and cameras in real time. Consumer demand for smarter, more connected vehicles is also propelling the market, with features like infotainment, in-car connectivity, and over-the-air updates relying heavily on advanced semiconductor solutions. Additionally, the global push for stricter emission regulations and higher fuel efficiency standards is compelling automakers to integrate more semiconductors into their vehicles to optimize engine performance and reduce environmental impact. Finally, the ongoing supply chain challenges and the strategic importance of semiconductors in automotive manufacturing have led to increased investments in semiconductor production capacity, further driving market growth.

Select Competitors (Total 46 Featured) -

• Alps Alpine Co., Ltd.
• Analog Devices, Inc.
• Crystal Mark, Inc.
• Infineon Technologies AG
• Infotmic
• Levitech B.V.
• Micron Technology, Inc.
• MVD Auto Components Pvt., Ltd.
• onsemi
• Qualcomm, Inc.

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