Automotive Semiconductor Market Overview:
Automotive Semiconductor Market Size was valued at USD 40,168.3 million in 2021. The Automotive Semiconductor industry is projected to grow from USD 43,662.9 Million in 2022 to USD 85,727.8 million by 2030, exhibiting a compound annual growth rate (CAGR) of 8.6% during the forecast period (2024 - 2030). Increasing trend of vehicle electrification and increase in safety features in vehicles are driving the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Semiconductor Market Trends
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Increasing trend of vehicle electrification to boost market growth
In recent years, the cost of electric vehicles has been comparatively very high due to the high manufacturing costs. The growth of new start-ups in the electric vehicle segment brought new innovative ideas and technologies which helped in reducing the production cost of vehicle electrification. This resulted in consumers shifting focus to the electric vehicle segment. The rise of fuel prices has also escalated the speed of vehicle electrification. This is especially in cities where gas emissions, congestion, and mobility problems are raising the demand for a new feature in cars. The use of semiconductors has enabled replacing the manual system with an electric system. Electrification of vehicles offers additional benefits such as reduced carbon emission and increased fuel mileage. Furthermore, governments across the globe are promoting vehicle electrification to accelerate sustainable mobility growth. For instance, the European council’s Fit for 55 program aims to achieve climate neutrality by the end of 2050.
The council aims to cut emissions by 55% by the end of 2030. The European government is implementing policies and mandates regarding the emission of CO2, and some countries in the region have plans to ban internal combustion engine vehicles from 2035. Similarly, other countries around the world are also encouraging the usage of electric vehicles, which has accelerated the growth of vehicle electrification. The growth trend of vehicle electrification has surged the demand for semiconductors as they are an important component in electric vehicles. On average, an EV requires 2,000 chips which are almost double the amount used in combustion cars.
In addition, increasing safety features in vehicles is another factor driving the growth of the Auto Semiconductor market revenue.
Automotive Semiconductor Market Segment Insights:
Automotive Semiconductor Application Insights
The Automotive Semiconductor Market segmentation, based on application, includes powertrain, safety, body electronics, chassis, and telematics and infotainment. The powertrain segment held the majority share in 2021 contribution to around ~25-30% in respect to the Auto Semiconductor Market revenue. This is primarily owing to the rising need of deploy powertrain control system in vehicles.
NXP Semiconductors
January 2025: NXP announced the launch of its new automotive microcontroller series aimed at enhancing vehicle connectivity and safety features.
March 2025: NXP expanded its partnership with major automotive manufacturers to integrate advanced driver-assistance systems (ADAS) technology.
Automotive Semiconductor Vehicle Type Insights
The Automotive Semiconductor Market segmentation, based on vehicle type, includes passenger vehicle, and commercial vehicle. The passenger vehicle segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. This is due to the rapid population growth, and urbanization. Hence, it positively impacts the market growth.
Automotive Semiconductor Component Insights
The Automotive Semiconductor Market segmentation, based on component, includes processor, analog ic, discrete power device, sensor, memory device, logic ic. The processor segment dominated the market in 2021 and is projected to be the faster growing segment during the forecast period, 2024-2030. This due to rising industrialization and growing investment in semiconductor. Hence, it positively impacts the market growth.
Automotive Semiconductor Vehicle Propulsion Insights
The Automotive Semiconductor Market data has been bifurcated by vehicle propulsion into ICE Vehicle and Electric Vehicle. The ICE Vehicle segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. The ICE vehicle segment held the majority share in 2021 contribution to around ~85-90% in respect to the Auto Semiconductor Market. Nothing like EVs, which takes hours to recharge, ICE vehicle can be refueled in minutes. Hence, due to ICE vehicle advantages implants for automotive industry positively impacts the market growth.
Renesas Electronics
February 2025: Renesas revealed a new line of power management ICs specifically designed for electric vehicles (EVs), improving energy efficiency.
April 2025: The company reported a significant increase in production capacity to meet the growing demand for automotive semiconductors.
Figure 1: Automotive Semiconductor Market, by Vehicle Propulsion, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Semiconductor Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America Automotive Semiconductor market accounted for USD 10,731.4 million in 2021 and is expected to exhibit an 7.6% CAGR during the study period.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automotive Semiconductor Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automotive Semiconductor market accounts for the second-largest market share due to the adoption of advanced technologies in automotive industry. Further, the Germany Auto Semiconductor market held the largest market share, and the UK Automotive Semiconductor market was the fastest growing market in the European region. In UK the automotive industry is essential to the economy. it accounts for 13% of the country's total exports of good, having around 180,000 people in manufacturing as well as around 864,000 across the wider automotive industry. Also, EU is an important destination for British cars. Furthermore, the UK and South Korea announced a deal for enhancing supply chains for ensuring the flow of critical goods with regard to chips which are used in advanced production in the auto industry. Belgium is advanced in adapting new technologies in large fleets, which results in establishing production facilities in the country. For instance, ON Semiconductor has increased the capacity at its production facility which manufactures high-voltage technologies for the industrial and automotive industries. In France, Wilov is a usage-based insurance provider which offers a 'badge' to the customer for tracking the miles driven. Furthermore, major players are adopting strategic initiatives which have boosted the market.
The Asia-Pacific Automotive Semiconductor Market is expected to grow at a CAGR of 9.6% from 2024 to 2030. This is due to increased sales of passenger vehicles in this region. Moreover, China Automotive Semiconductor market held the largest market share, and the India Automotive Semiconductor market was the fastest growing market in the Asia-Pacific region.
Furthermore, growth in the region is attributed to rising research and development expenditure as well as government initiatives. Also, countries such as South Korea, Taiwan, China, and Japan are big semiconductor players in the region. Moreover, the region has the presence of many several global tech giants. Additionally, according to Tech Wire Asia, Asia Pacific accounts for 60% market share.
China has strength in semiconductors. China's potential in IC (integrated circuit) design has surged in last 5 years. In the semiconductor industry, there has been increase in investment in areas that enable short term returns.
Automotive Semiconductor Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Semiconductor market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Semiconductor industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Automotive Semiconductor industry to benefit clients and expand the Auto Semiconductor market sector is to manufacture locally to reduce operating costs.
Infineon has established a stable foundation for success in its target market. Its strategy aims to strengthen the core business further and acquire new growth. The company's strategic approach of "Product to System" orients its complete value chain to the customers' success.
STMicroelectronics has adopted both organic and inorganic growth approaches. It has a wide range of semiconductor devices that help them develop industry-leading products and solutions that have applications in IoT, hybrid and electric vehicles, among others. It also follows a product differentiation strategy that helps boost its smart connected consumer devices to increase its customer base and expand its regional presence through strategic partnerships.
List of the Key Companies in the Automotive Semiconductor market include
Automotive Semiconductor Industry Developments
Infineon Technologies
January 2025: Infineon launched a new family of automotive radar sensors aimed at improving safety in autonomous driving applications.
March 2025: Infineon announced a partnership with a leading EV manufacturer to develop next-generation battery management systems.
STMicroelectronics
February 2025: STMicroelectronics introduced a new sensor platform for automotive applications, enhancing vehicle performance and safety.
April 2025: The company reported strong quarterly earnings, driven by increased demand for automotive chips.
Robert Bosch GmbH
January 2025: Bosch unveiled its latest innovations in automotive semiconductors at the Consumer Electronics Show (CES), focusing on smart mobility solutions.
March 2025: Bosch announced a strategic investment in a semiconductor manufacturing facility to boost production capabilities for automotive applications.
July 22, 2024: The second quarter financial results for NXP Semiconductors N.V. (NASDAQ: NXPI), which concluded on June 30, 2024, were released today. "NXP met our objectives for quarterly sales, generating $3.13 billion, and all of our target end-markets performed as expected. NXP has successfully navigated the cyclical trough in our businesses, as seen by our second quarter results and third quarter outlook, and we anticipate returning to sequential growth. Kurt Sievers, president and chief executive officer of NXP, stated, "We continue to manage what is within our control, enabling NXP to drive resilient profitability and earnings in a challenging demand environment."
In April of 2022, Magnachip announced a 40V Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET) specifically designed for Brushless Direct Current (BLDC) motors used in automotive settings. The newly released 40V MOSFET is fully AEC-Q101 (Automotive Electronics Council-Q101) certified, as reliable automotive semiconductors are crucial to vehicle safety. The segment for memory devices is expected to be the second fastest-growing component segment. This is mainly a result of the powertrain modernization trend, which in turn increases the requirement for power components like IGBT and MOSFET. Enhancing the security in vehicles and adding extra functions requires additional memory devices to program every control apparatus to make the vehicle self-governing.
In May 2022, Continental (Germany) expanded its wide Sensor portfolio by introducing two additional sensors for electrified vehicles: the Current Sensor Module (CSM) and the Battery Impact Detection (BID) system. The two new solutions, along with the previous two, have a similar goal of enhancing battery maintenance and security.
In March of 2023, Renesas Electronics Corporation — a semiconductor solution provider — expanded its RISC-V portfolio by launching the first RISC-V microcontroller unit tailored for voice-operated human-machine interface systems. This new 32-bit ASSP, which goes by the name R9A06G150, has been developed with partners in the RISC-V ecosystem and provides a low-cost,ready-to-use voice control system without RISC-V tools or software overhead.
Infineon Technologies (Germany), on 12th October 2021, launched the SLI37 automotive security controller. An easy-to-design and reliable trust anchor for securing life-critical automotive applications such as 5G ready eUICC (eCall), vehicle-market (V2X) communication, car access, and software updates (SOTA) updates.
NXP Semiconductors (Netherlands), on 12th July 2021, announced a new partnership with Ford to enhance driver experiences across its fleet, including the 2021 Ford F-150 pickup, Mustang Mach-E and Bronco SUVs. We will work with NXP's vehicle networking processors and i.MX 8 Series processors in the connected car technologies Ford is set to introduce in the new Ford vehicles.
In October 2023, BOS Semiconductors, a new technology firm from South Korea, partnered with US AI hardware firm Tenstorrent to design semiconductors for use and manufacture in vehicles. The cooperation allows BOS to make use of Tenstorrent's AI Tensix core technology. This cooperation aims to take the MASI and encapsulate it into BOS chips and prepare them for automotive AI assisted semiconductors with higher processing speed.
Vehicle Semiconductor Market Segmentation:
Vehicle Semiconductor Component Outlook
- Processor
- Analog IC
- Discrete power device
- Sensor
- Memory Device
- Logic IC
Vehicle Semiconductor Application Outlook
- Powertrain
- Safety
- Body Electronics
- Chassis
- Telematics and infotainment
Vehicle Semiconductor Vehicle type Outlook
- Passenger Vehicle
- Commercial Vehicle
Vehicle Semiconductor Vehicle Propulsion Outlook
- ICE Vehicle
- Electric Vehicle
Vehicle Semiconductor Regional Outlook
North America
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2021 |
USD 40,168.3 million |
| Market Size 2022 |
USD 43,662.9 million |
| Market Size 2030 |
USD 85,727.8 million |
| Compound Annual Growth Rate (CAGR) |
8.6% (2024-2030) |
| Base Year |
2023 |
| Forecast Period |
2024-2030 |
| Historical Data |
2018 & 2022 |
| Forecast Units |
Value (USD Million) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Application, Vehicle type, Vehicle Propulsion, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
NXP Semiconductors, Renesas Electronics, Infineon Technologies, STMicroelectronics, Robert Bosch GmbH, Texas Instruments, ON Semiconductor, ROHM, Toshiba, and Analog Devices |
| Key Market Opportunities |
Growing Demand For EV |
| Key Market Dynamics |
Increasing trend of vehicle electrification Increase in safety features in vehicles |
Automotive Semiconductor Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Semiconductor market Size was 40,168.3 USD Million in 2021
The U.S Automotive Semiconductor market Size 9,255.1 USD Million
The growth rate of the Automotive Semiconductor market is 8.6% by 2030
Asia Pacific held the largest market share in the Automotive Semiconductor market
NXP Semiconductors, Renesas Electronics, Infineon Technologies, STMicroelectronics, Robert Bosch GmbH, Texas Instruments, ON Semiconductor, ROHM, Toshiba, and Analog Devices.
Powertrain led the Automotive Semiconductor market
Passenger vehicles had the largest market share in the Automotive Semiconductor market
