A recent report published by Infinium Global Research on semiconductor in automotive market provides in-depth analysis of segments and sub-segments in the global as well as regional semiconductor in automotive market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional semiconductor in automotive market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global semiconductor in automotive market.
The semiconductor in automotive market is experiencing significant shifts driven by several key trends. The increasing adoption of electric vehicles (EVs) is a major catalyst, leading to higher demand for specialized semiconductors in battery management systems, power electronics, and motor control units. This trend is further amplified by government initiatives promoting EV adoption globally, which consumes ambitious electrification targets. Another prominent trend is the rising integration of advanced driver assistance systems (ADAS) in vehicles, encompassing features such as autonomous emergency braking, lane departure warning, and adaptive cruise control. This necessitates advanced semiconductors such as computer vision processors, radar, and LiDAR sensors. The pursuit of higher levels of autonomy is expected to further increase the semiconductor content per vehicle significantly. Connectivity is also a crucial trend, with the demand for connected cars rising. This drives the need for semiconductors enabling vehicle-to-everything (V2X) communication, including Wi-Fi, bluetooth, and cellular technologies, alongside sophisticated infotainment systems and telematics.
Moreover, there is a growing focus on in-car artificial intelligence (AI) for features such as in-car assistants and eventually for autonomous driving, leading to the integration of AI-specific hardware in vehicles. Furthermore, the electronic content in vehicles is steadily increasing across all segments, driven by demands for enhanced safety, comfort, and convenience features. This translates to a greater need for sensors, memory devices, and analog integrated circuits. The semiconductor in automotive market faces several key challenges despite its rapid growth. One of the most critical issues is the supply chain disruption, as seen during the global chip shortage, which significantly impacts vehicle production across major markets. High development and manufacturing costs of advanced semiconductors, especially those used in EVs and autonomous systems, pose financial risks, particularly for smaller players. Additionally, geopolitical tensions and export restrictions, particularly between major chip-producing countries such as the U.S., and China, have increased uncertainty and encouraged a shift toward regionalization of supply chains. Cybersecurity and software reliability in increasingly connected vehicles present ongoing risks, requiring continuous innovation in secure chip design and over-the-air update capabilities.
The surging demand for electric vehicles (EVs) is driving the growth of semiconductors in the automotive market. EVs rely heavily on semiconductors for critical functions such as battery management systems, power inverters, electric motor control, and charging infrastructure. These vehicles require more electronic components than traditional internal combustion engine cars, increasing the need for advanced chips. As global regulations push for lower emissions and consumers seek sustainable transportation, automakers are scaling EV production, thereby boosting the demand for high-performance, energy-efficient semiconductors that ensure safety, efficiency, and connectivity in electric vehicles. Additionally, the rise of advanced driver assistance systems (ADAS) and autonomous driving technologies is propelling growth in the automotive semiconductor market. ADAS features such as lane-keeping, adaptive cruise control, and automatic emergency braking rely on a range of sensors—radar, LiDAR, and cameras—powered by semiconductors for real-time data processing and decision-making. As vehicles move toward higher levels of autonomy, the demand for powerful, reliable, and low-latency chips increases. These technologies enhance safety and driver convenience, making them a priority for automakers and regulators, thereby driving rapid semiconductor integration across all vehicle segments.
On the other hand, the high cost and complexity of semiconductor design and manufacturing are major restraints on the automotive semiconductor market. Developing advanced chips for EVs and autonomous systems requires significant investment in R&D, specialized equipment, and cleanroom facilities. Automotive-grade semiconductors must meet rigorous safety, reliability, and performance standards, further increasing production costs and time. Smaller companies often struggle to compete due to these high barriers to entry, limiting innovation and supply capacity in a market that demands rapid technological advancement and scalability. Furthermore, partnerships and collaborations are vital catalysts for growth in the automotive semiconductor market. By combining expertise and resources, semiconductor companies may accelerate innovation, develop more integrated and optimized solutions tailored to specific automotive needs, and reduce time-to-market. Collaborations may also facilitate the sharing of R&D costs and risks associated with developing cutting-edge technologies for EVs, ADAS, and connected cars. Furthermore, partnerships also help semiconductor companies gain access to new markets and customers within the automotive ecosystem, fostering overall market expansion.
Asia-Pacific is expected to dominate the semiconductor in automotive market during the forecast period. This dominance is primarily driven by the region's strong automotive manufacturing base, particularly in countries such as China, Japan, and South Korea, which are also major hubs for semiconductor production. China's rapid adoption of electric vehicles (EVs), government support for local chip manufacturing, and ongoing investments in autonomous driving technologies further strengthen its leadership. Additionally, high demand for consumer electronics and favorable economic conditions support the region’s continued growth and dominance in this market. North America is anticipated to be the fastest-growing region in the semiconductor in automotive market during the forecast period. This growth is fueled by rapid advancements in electric vehicles (EVs), autonomous driving technologies, and a strong focus on vehicle safety and connectivity. The presence of major automotive and tech companies, along with increasing government support for domestic semiconductor manufacturing, such as the U.S. CHIPS Act, is accelerating innovation and investment. Additionally, consumer demand for high-tech, connected vehicles is boosting semiconductor integration across the region’s automotive sector.
| Report Coverage | Details |
|---|---|
| Market Size in 2023 | USD 72.3 Billion |
| Market Size by 2032 | USD 269.44 Billion |
| Growth Rate from 2024 to 2032 | CAGR of 16.48% |
| Largest Market | Asia Pacific |
| No. of Pages | 300 |
| Market Drivers |
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| Market Segmentation | By Component, By Vehicle Type, By Propulsion Type, and By Application |
| Regional Scope | North America, Europe, Asia Pacific, and RoW |
The report on global semiconductor in automotive market provides a detailed analysis of segments in the market based on Component, Vehicle Type, Propulsion Type, and Application.
· Processor
· Analog IC
· Discrete Power
· Sensor
· Memory
· Others
· Passenger Vehicle
· Light Commercial Vehicle (LCV)
· Heavy Commercial Vehicle (HCV)
· Internal Combustion Engine
· Electric
· Chassis
· Powertrain
· Safety
· Telematics & Infotainment
· Body Electronics
· Infineon Technologies AG
· STMicroelectronics NV
· NXP Semiconductors N.V.
· Texas Instruments Incorporated
· Renesas Electronics Corporation
· Semiconductor Components Industries, LLC
· Analog Devices, Inc.
· Micron Technology, Inc.
· Qualcomm Incorporated
· Robert Bosch GmbH
The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the semiconductor in automotive market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.