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    Automotive Integrated Circuit Market

    ID: MRFR/AM/22974-HCR
    100 Pages
    Snehal Singh
    October 2025

    Automotive Integrated Circuit Ics Market Research Report By Vehicle Type (Passenger Cars, Commercial Vehicles, Two Wheelers), By IC Technology (Silicon Carbide (SiC), Gallium Nitride (GaN), Silicon-on-Insulator (SOI), Complementary Metal-Oxide-Semiconductor (CMOS)), By Application (Power Management, Infotainment, Safety and Security, Telematics), By Level of Automation (Level 1, Level 2, Level 3, Level 4, Level 5), By Chip Design (Full-Custom Design, Semi-Custom Design, Application-Specific Integrated Circuit (ASIC) Design) and By Regional (...

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    Automotive Integrated Circuit Market Summary

    The Global Automotive Integrated Circuit Ics Market is projected to grow significantly from 54.47 USD Billion in 2024 to 147.71 USD Billion by 2035.

    Key Market Trends & Highlights

    Automotive Integrated Circuit Ics Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate of 9.49 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 147.7 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 54.47 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of advanced driver assistance systems due to increasing safety regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 54.47 (USD Billion)
    2035 Market Size 147.71 (USD Billion)
    CAGR (2025-2035) 9.49%

    Major Players

    Texas Instruments, Renesas Electronics, Qualcomm, TDK, NXP Semiconductors, Analog Devices, STMicroelectronics, Murata Manufacturing, Broadcom, Wolfspeed, ROHM, Infineon Technologies, ON Semiconductor, Mitsubishi Electric, Vishay Intertechnology

    Automotive Integrated Circuit Market Trends

    The automotive integrated circuit (IC) market is poised for significant growth in the coming years, driven by several key factors. The increasing adoption of autonomous and semi-autonomous vehicles requires the integration of advanced sensors, actuators, and electronic control units, which rely heavily on ICs. Moreover, the growing popularity of electric vehicles is driving the demand for power management and battery monitoring ICs.

    Additionally, the need for enhanced connectivity and infotainment systems is creating opportunities for ICs that support advanced communication protocols and multimedia applications.To capitalize on these opportunities, market participants are focusing on developing ICs that are smaller, more energy-efficient, and more reliable. 

    Continuous advancements in semiconductor technology are enabling the integration of more functionality into a single chip, leading to cost savings and improved performance. Additionally, the growing adoption of artificial intelligence and machine learning in automotive applications is driving the demand for ICs that can process large amounts of data in real time.Recent trends in the automotive IC market include the increasing adoption of wide bandgap semiconductor materials, such as silicon carbide and gallium nitride, which offer superior power handling capabilities.

    Additionally, there is a growing emphasis on wireless connectivity and data security, leading to the integration of specialized ICs for Bluetooth, Wi-Fi, and cellular communications. Furthermore, the increasing demand for personalized automotive experiences is driving the development of ICs that can support voice recognition, gesture control, and other advanced human-machine interfaces.

    The ongoing evolution of automotive technology suggests that the demand for integrated circuits is poised to expand, driven by the increasing integration of advanced driver-assistance systems and electric vehicle functionalities.

    U.S. Department of Energy

    Automotive Integrated Circuit Market Drivers

    Market Growth Projections

    The Global Automotive Integrated Circuit Ics Market Industry is poised for substantial growth, with projections indicating a market size of 54.5 USD Billion in 2024 and an anticipated increase to 147.7 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 9.49% from 2025 to 2035, reflecting the increasing integration of advanced technologies in vehicles. The market dynamics are influenced by various factors, including the rise of electric vehicles, advancements in autonomous driving, and the integration of IoT solutions, all contributing to a robust and evolving landscape.

    Rising Demand for Electric Vehicles

    The increasing adoption of electric vehicles (EVs) is a primary driver for the Global Automotive Integrated Circuit Ics Market Industry. As manufacturers pivot towards sustainable mobility solutions, the demand for advanced integrated circuits that manage battery systems, power distribution, and electric drivetrains escalates. In 2024, the market is projected to reach 54.5 USD Billion, reflecting the growing emphasis on EV technology. Furthermore, by 2035, the market could expand to 147.7 USD Billion, indicating a robust growth trajectory fueled by the need for efficient energy management and innovative automotive technologies.

    Government Regulations and Safety Standards

    Government regulations and safety standards play a crucial role in shaping the Global Automotive Integrated Circuit Ics Market Industry. Stricter emissions regulations and safety requirements compel manufacturers to adopt advanced technologies, including integrated circuits that enhance vehicle safety and reduce environmental impact. Compliance with these regulations often necessitates the incorporation of sophisticated electronic systems, which in turn drives demand for automotive ICs. As governments worldwide continue to prioritize safety and sustainability, the market is expected to experience sustained growth, reflecting the industry's adaptation to regulatory pressures.

    Integration of IoT in Automotive Applications

    The integration of Internet of Things (IoT) technology into automotive applications is reshaping the Global Automotive Integrated Circuit Ics Market Industry. IoT-enabled vehicles facilitate connectivity, allowing for real-time data exchange between vehicles and infrastructure. This connectivity enhances vehicle performance, maintenance, and user experience. As automakers increasingly adopt IoT solutions, the demand for integrated circuits that support these functionalities is likely to surge. The anticipated growth in this segment aligns with the broader trend of digital transformation in the automotive sector, further driving the market's expansion.

    Advancements in Autonomous Driving Technologies

    The evolution of autonomous driving technologies significantly influences the Global Automotive Integrated Circuit Ics Market Industry. As vehicles become increasingly equipped with sensors, cameras, and advanced driver-assistance systems (ADAS), the demand for sophisticated integrated circuits rises. These circuits are essential for processing vast amounts of data in real-time, ensuring safety and efficiency. The projected compound annual growth rate (CAGR) of 9.49% from 2025 to 2035 underscores the potential for growth in this sector, as manufacturers invest heavily in research and development to enhance vehicle autonomy and safety features.

    Growing Consumer Demand for Enhanced Vehicle Features

    Consumer preferences for enhanced vehicle features are a significant driver of the Global Automotive Integrated Circuit Ics Market Industry. Modern consumers increasingly seek vehicles equipped with advanced infotainment systems, connectivity options, and safety features. This demand compels manufacturers to integrate more sophisticated electronic systems, including integrated circuits, to meet consumer expectations. As a result, the automotive IC market is poised for growth, with manufacturers investing in innovative technologies to enhance the overall driving experience. This trend is likely to continue, further propelling the market's expansion in the coming years.

    Market Segment Insights

    Automotive Integrated Circuit Ics Market Vehicle Type Insights

    Vehicle Type Segment Insights and Overview There is a significant difference in the global Automotive Integrated Circuit market for all three vehicle types. They are passenger cars, commercial vehicles, and two wheelers. The passenger cars’ share of the segment was the highest in 2023 and will continue to hold this position. This is caused by a fast increase in the number of passenger cars sold, especially in the markets of emerging economies.

    The commercial vehicles’ share will increase as the segment will experience the most significant growth throughout the forecast period.The market for these vehicles is rapidly increasing as the demand grows in the logistics, transportation, and construction segments. 

    The increase in popularity of two wheelers in urban areas and developing countries will result in this segment’s share growing gradually. It should be noted that although this share is the lowest, the number of two wheelers sold worldwide is still considerable. The highest revenue is going to be brought by the passengers cars segment. It will be followed by commercial vehicles and two wheelers, which will also be the sequence for the subsequent years.This is because there are two times more passenger cars sold compared to the total of commercial vehicles and two wheelers.

    At the same time, the share of commercial vehicles indicates that a considerable share of the market revenue comes from this sector. Finally, although the lowest, the share of two wheelers is still significant and will bring a lot of revenue as their popularity in urban areas and developing countries is growing. Overall, the Vehicle Type segment is shaping the favorable conditions for the Automotive Integrated Circuit Market growth as the demand for the three vehicle types is likely to grow over time.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Automotive Integrated Circuit Ics Market IC Technology Insights

    The IC Technology segment significantly drives the development of the Automotive Integrated Circuit Ics Market. The materials, such as Silicon Carbide and Gallium Nitride appear to have high potential and are gaining popularity for their power electronics integrated circuits. These materials boast higher power efficiency and density. The Automotive Integrated Circuit Ics Market revenue for SiC and GaN is projected to increase and reach USD 2.4 billion by 2024. 

    The Silicon-on-Insulator technology is beneficial for its improved technology and reduced leakage currents, which make it perfect for ADAS and autonomous driving.The Complementary Metal-Oxide-Semiconductor technology is widely used because of its low cost and can be applied to any type of ICs used in the automotive field from in-vehicle systems to powertrain control units. Automotive Integrated Circuit Ics Market statistics show the growth of the production of CMOS-based ICs since they are highly scalable and universal in terms of technology integration.

    Automotive Integrated Circuit Ics Market Application Insights

    The Automotive Integrated Circuit Ics Market by Application is segmented into Power Management, Infotainment, Safety and Security, and Telematics. The Power Management segment is expected to hold the largest market share in 2024 due to the increasing demand for fuel-efficient vehicles. The Infotainment segment is expected to grow at the highest CAGR during the forecast period due to the rising popularity of connected cars.

    The Safety and Security segment is expected to witness significant growth due to the increasing need for advanced safety features in vehicles.The Telematics segment is expected to hold a significant market share due to the growing demand for vehicle tracking and fleet management systems.

    Automotive Integrated Circuit Ics Market Level of Automation Insights

    The Level of Automation segment plays a crucial role in the Automotive Integrated Circuit Ics Market, influencing market growth and driving innovation. As of 2023, Level 1 systems held a significant market share, enabling basic driver assistance features such as lane departure warning and automatic emergency braking. By 2024, Level 2 systems are projected to witness a surge in adoption, offering more advanced capabilities like adaptive cruise control and lane keeping assist. 

    Level 3 systems, expected to emerge in 2025, will bring conditional automation, allowing drivers to delegate certain driving tasks under specific conditions.The market for Level 4 systems, expected in 2028, will witness high growth, providing high levels of automation and enabling hands-free driving in most situations. Level 5 systems, still in the research and development phase, are expected to achieve full automation, eliminating the need for human intervention in driving. The Automotive Integrated Circuit Ics Market segmentation provides insights into the evolving landscape of autonomous driving technologies, shaping market growth and innovation.

    Automotive Integrated Circuit Ics Market Chip Design Insights

    The Automotive Integrated Circuit Ics Market is segmented by Chip Design into Full-Custom Design, Semi-Custom Design, and Application-Specific Integrated Circuit (ASIC) Design. The Full-Custom Design segment held the largest share of the market in 2023 and is projected to continue to grow at a CAGR of 9.6% from 2023 to 2032. The Semi-Custom Design segment is expected to grow at a CAGR of 9.3% during the forecast period, while the ASIC Design segment is anticipated to grow at a CAGR of 9.1%.

    The growth of the Automotive Integrated Circuit Ics Market is attributed to the increasing demand for automotive electronics, such as advanced driver assistance systems (ADAS), infotainment systems, and powertrain control modules.The rising adoption of electric vehicles and autonomous vehicles is also driving the growth of the market.

    Get more detailed insights about Automotive Integrated Circuit Market

    Regional Insights

    The Automotive Integrated Circuit Ics Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth in the APAC region can be attributed to the increasing demand for automobiles in emerging economies such as China and India. Europe is expected to be the second-largest market for Automotive Integrated Circuit Ics, followed by North America.

    South America and MEA are expected to witness significant growth in the coming years due to the rising demand for automobiles in these regions.

    Automotive Integrated Circuit Ics Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Automotive Integrated Circuit Ics Market industry are investing heavily in research and development to gain a competitive edge. Leading Automotive Integrated Circuit Ics Market players are focusing on developing innovative products and technologies to meet the evolving needs of the Automotive Integrated Circuit Ics Market. The Automotive Integrated Circuit Ics Market development is being driven by the increasing demand for electronic components in vehicles. The growing adoption of advanced driver assistance systems (ADAS) and autonomous driving technologies is also boosting the demand for Automotive Integrated Circuit Ics.

    The Automotive Integrated Circuit Ics Market Competitive Landscape is expected to remain highly competitive in the coming years, with major players vying for market share.Renesas Electronics Corporation, a leading company in the Automotive Integrated Circuit Ics Market, is a global supplier of semiconductor solutions for automotive, industrial, home appliance, and other applications. The company has a wide range of Automotive Integrated Circuit Ics products, including microcontrollers, power management ICs, and analog ICs. Renesas Electronics Corporation is known for its high-quality products and its strong customer support. 

    The company has a global network of sales and support offices, and it is committed to providing its customers with the best possible service.Texas Instruments Incorporated, a competitor company in the Automotive Integrated Circuit Ics Market, is a global semiconductor company with a wide range of products, including analog ICs, digital signal processors (DSPs), and microcontrollers. The company has a strong presence in the automotive market, and it offers a wide range of Automotive Integrated Circuit Ics products, including power management ICs, battery management ICs, and safety ICs.

    Texas Instruments Incorporated is known for its innovative products and its strong customer support. The company has a global network of sales and support offices, and it is committed to providing its customers with the best possible service.

    Key Companies in the Automotive Integrated Circuit Market market include

    Industry Developments

    The global automotive integrated circuit (IC) market is projected to reach $102.81 billion by 2032, exhibiting a CAGR of 9.49% during the forecast period (2025-2034). The increasing demand for advanced driver-assistance systems (ADAS), autonomous vehicles, and electric vehicles is driving the growth of the market.Recent news developments include the launch of new automotive ICs by major semiconductor manufacturers such as Infineon, NXP Semiconductors, and Renesas Electronics. These ICs offer improved performance, power efficiency, and reliability for various automotive applications.

    Additionally, the growing adoption of 5G technology in vehicles is expected to create new opportunities for automotive ICs in the coming years.

    Future Outlook

    Automotive Integrated Circuit Market Future Outlook

    The Automotive Integrated Circuit Ics Market is poised for robust growth, driven by advancements in electric vehicles, autonomous technology, and connectivity, achieving a 9.49% CAGR from 2025 to 2035.

    New opportunities lie in:

    • Develop advanced driver-assistance systems (ADAS) to enhance vehicle safety and automation.
    • Invest in semiconductor manufacturing capabilities to mitigate supply chain risks and improve margins.
    • Leverage AI and machine learning for predictive maintenance solutions in automotive applications.

    By 2035, the market is expected to reach a pivotal position, reflecting substantial growth and technological advancements.

    Market Segmentation

    Automotive Integrated Circuit Ics Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Automotive Integrated Circuit Ics Market Application Outlook

    • Power Management
    • Infotainment
    • Safety and Security
    • Telematics

    Automotive Integrated Circuit Ics Market Chip Design Outlook

    • Full-Custom Design
    • Semi-Custom Design
    • Application-Specific Integrated Circuit (ASIC) Design

    Automotive Integrated Circuit Ics Market Vehicle Type Outlook

    • Passenger Cars
    • Commercial Vehicles
    • Two Wheelers

    Automotive Integrated Circuit Ics Market IC Technology Outlook

    • Silicon Carbide (SiC)
    • Gallium Nitride (GaN)
    • Silicon-on-Insulator (SOI)
    • Complementary Metal-Oxide-Semiconductor (CMOS)

    Automotive Integrated Circuit Ics Market Level of Automation Outlook

    • Level 1
    • Level 2
    • Level 3
    • Level 4
    • Level 5

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024   54.47 (USD Billion)
    Market Size 2025   59.65 (USD Billion)
    Market Size 2035 147.71 (USD Billion)
    Compound Annual Growth Rate (CAGR) 9.49% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Texas Instruments, Renesas Electronics, Qualcomm, TDK, NXP Semiconductors, Analog Devices, STMicroelectronics, Murata Manufacturing, Broadcom, Wolfspeed, ROHM, Infineon Technologies, ON Semiconductor, Mitsubishi Electric, Vishay Intertechnology
    Segments Covered Vehicle Type, IC Technology, Application, Level of Automation, Chip Design, Regional
    Key Market Opportunities 1 Increasing demand for advanced driver assistance systems ADAS2 Growing electrification of vehicles3 Expansion of autonomous driving technology4 Rising demand for infotainment and connectivity features5 Adoption of AI and machine learning in automotive applications
    Key Market Dynamics 1 Increasing demand for autonomous vehicles2 Growing adoption of advanced driver assistance systems3 Electrification of vehicles4 Stringent emission regulations5 Technological advancements in semiconductors
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the projected market size of the Automotive Integrated Circuit Ics Market in 2024?

    The Automotive Integrated Circuit Ics Market is expected to reach a valuation of 54.47 billion USD in 2024.

    What is the projected CAGR of the Automotive Integrated Circuit Ics Market from 2025 to 2034?

    The Automotive Integrated Circuit Ics Market is projected to grow at a CAGR of 9.49% from 2025 to 2034.

    What is the expected market size of the Automotive Integrated Circuit Ics Market in 2034?

    The Automotive Integrated Circuit Ics Market is expected to reach a valuation of 134.90 billion USD by 2034.

    Which region is expected to hold the largest market share in the Automotive Integrated Circuit Ics Market?

    The Asia-Pacific region is expected to hold the largest market share in the Automotive Integrated Circuit Ics Market, owing to the increasing production of automobiles in the region.

    What are the key applications of Automotive Integrated Circuit Ics?

    Automotive Integrated Circuit Ics are used in a wide range of applications, including engine control, transmission control, airbag control, and infotainment systems.

    Who are the key competitors in the Automotive Integrated Circuit Ics Market?

    The key competitors in the Automotive Integrated Circuit Ics Market include NXP Semiconductors, Infineon Technologies, Renesas Electronics, STMicroelectronics, and Texas Instruments.

    What are the major factors driving the growth of the Automotive Integrated Circuit Ics Market?

    The major factors driving the growth of the Automotive Integrated Circuit Ics Market include the increasing demand for automobiles, the growing adoption of advanced driver assistance systems (ADAS), and the increasing electrification of vehicles.

    What are the challenges faced by the Automotive Integrated Circuit Ics Market?

    The challenges faced by the Automotive Integrated Circuit Ics Market include the shortage of semiconductors, the rising cost of raw materials, and the increasing competition from emerging markets.

    What are the opportunities for growth in the Automotive Integrated Circuit Ics Market?

    The opportunities for growth in the Automotive Integrated Circuit Ics Market include the development of new technologies, the expansion into new markets, and the increasing adoption of electric vehicles.

    What are the key trends in the Automotive Integrated Circuit Ics Market?

    The key trends in the Automotive Integrated Circuit Ics Market include the increasing adoption of artificial intelligence (AI), the development of autonomous vehicles, and the increasing demand for connectivity solutions.

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