United States Automotive Semiconductor Market Forecast 2024-2032

United States Automotive Semiconductor Market Forecast 2024-2032

The United States automotive semiconductor market is estimated to grow with a CAGR of 8.89% during the forecast period, 2024 to 2032. The base year regarded for the studied market is 2023, and the forecasting years are from 2024 to 2032.

MARKET INSIGHTS

The country’s automotive semiconductor market plays a critical role in the broader automotive and technology sectors, reflecting both the nation’s manufacturing strength and its dependence on global supply chains. As the demand for advanced vehicles, including electric and autonomous cars, continues to rise, semiconductors have become an essential component for innovations in safety, connectivity, and energy efficiency.

With automotive technology rapidly advancing, the semiconductor industry in the US is expected to see significant changes, influenced by both domestic production and international partnerships. The nation is home to one of the largest automotive markets in the world. However, in March 2020, vehicle sales saw a dramatic 38% year-on-year decline due to the onset of the COVID-19 pandemic. As restrictions eased and stay-at-home orders were lifted, sales rebounded to 14.5 million units by the end of the year. Light vehicles, which accounted for about 97% of motor vehicle sales, were instrumental in driving this recovery.

Despite the strength of domestic automotive manufacturing, the US remains heavily reliant on foreign semiconductor suppliers, especially from Taiwan, to meet its growing demand for automotive semiconductors. By May 2021, the US Commerce Secretary publicly urged for increased support from Taiwanese manufacturers to address the semiconductor shortages that were decelerating the country’s auto industry. This call for action highlighted the global nature of the semiconductor supply chain and its critical role in automotive manufacturing.

The United States semiconductor market has shown strong growth, with an estimated 1.15 trillion semiconductor units shipped in 2021—a notable increase from the previous year, according to the Semiconductor Industry Association (SIA). In 2023, global industry sales hit $527 billion, with nearly 1 trillion semiconductors sold worldwide. As the demand for semiconductors rises, the World Semiconductor Trade Statistics forecasts sales to surpass $600 billion in 2024. This growth is expected to gain further momentum as the automotive industry increasingly depends on advanced chips for electric vehicles, autonomous driving technologies, and cutting-edge safety systems.

The combination of these trends, alongside government initiatives such as the CHIPS and Science Act, which aims to increase domestic semiconductor production, is likely to drive the growth of the United States automotive semiconductor market in the coming years. As supply chain resilience becomes more of a focus, the US may also see a shift towards increased domestic semiconductor manufacturing, potentially reducing its reliance on international suppliers.

SEGMENTATION ANALYSIS

The United States automotive semiconductor market segmentation includes application, component, fuel type, and vehicle type. The application segment includes advanced driver assistance systems, body electronics, infotainment, powertrain, and safety systems.

Body electronics refer to a network of integrated electronic systems in vehicles that perform various functions related to vehicle control and monitoring. A key component of this network is the Body Control Module (BCM), an Electronic Control Unit (ECU) designed to actuate, monitor, and control various vehicle body functions, as well as other related ECUs. The BCM communicates with other vehicle systems via the bus system and can also include a gateway function. With the increasing number of features and functions being added to vehicles, the complexity of BCMs has significantly grown. In some cases, vehicles require multiple BCMs, such as front and rear modules, to manage more than 100 loads.

To simplify the complexity of the BCM and the associated wiring harness, certain functions located in specific areas of the vehicle have been combined into dedicated ECUs. These ECUs, supplied and monitored by the BCM, include components like LED modules, HVAC systems, seat modules, door modules, and car access/immobilizer modules. This approach, termed decentralized body control architecture, helps streamline power distribution and in-vehicle network functions. Semiconductors play a crucial role in this regard, enabling the smooth functioning of body electronics by powering these complex control systems.

COMPETITIVE INSIGHTS

Eminent companies in the United States automotive semiconductor market include Intel Corporation, Microchip Technology Incorporated, ON Semiconductor Corporation, etc.

ON Semiconductor Corporation, a US-based company, specializes in providing power and signal management, logic, analog, sensors, timing, connectivity, system-on-chip (SoC), discrete, and custom solutions across a wide range of industries. These industries include automotive, communications, computing, consumer electronics, industrial, medical, aerospace, defense, and power supply applications.

The company maintains a global network of manufacturing facilities, sales offices, and design centers across North America, Asia-Pacific, and Europe. ON Semiconductor operates through three primary business segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group, with operations spanning 74 countries worldwide.