Automotive Semiconductor Market Forecasts to 2030 - Global Analysis By Component, Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial and Other Vehicle Types), Fuel Type, Application and by Geography

According to Stratistics MRC, the Global Automotive Semiconductor Market is accounted for $53.91 billion in 2024 and is expected to reach $106.98 billion by 2030 growing at a CAGR of 12.1% during the forecast period. Automotive semiconductors are essential to the modern automobile industry because they provide the mechanical foundation for control and electronics systems in cars. Numerous functions are made possible by these specialized semiconductor components, including infotainment, advanced driver-assistance systems (ADAS), power management, and motor control. Moreover, the need for reliable, efficient semiconductors that meet automotive standards is growing as cars become more electrified and autonomous, which is propelling advancements in efficiency, safety, and overall vehicle performance.

According to the Semiconductor Industry Association, The semiconductor industry is pivotal in driving technological advancements across various sectors, from consumer electronics to automotive and beyond.

Market Dynamics:

Driver:

Growth of hybrid and electric vehicles

Specialized semiconductor solutions are required for effective power management and energy conversion in the transition to electric and hybrid vehicles. Electric motor control units, power inverters, and battery management systems all depend heavily on semiconductors. Additionally, the demand for semiconductor technologies that can increase energy efficiency and performance is rising along with the global adoption of electric vehicles.

Restraint:

Expense and integration complexity

The integration of cutting-edge semiconductor technologies into automobiles is expensive and complex. Cost concerns must be balanced with the requirement for cutting-edge features by automotive manufacturers, particularly as semiconductor components get more complex and specialized. Furthermore, compatibility and reliability issues may arise from the intricacy of incorporating these technologies into current car architectures.

Opportunity:

Developments in connected vehicle technology

The proliferation of connected car technologies, such as in-vehicle connectivity and vehicle-to-everything (V2X) communication, presents new opportunities for semiconductor growth. For wireless communication, GPS navigation, cybersecurity, and infotainment systems, these technologies demand reliable semiconductor solutions. Moreover, semiconductor manufacturers can benefit from these opportunities by creating specialized solutions as consumers demand more intelligent and integrated vehicle features.

Threat:

Pricing pressures and intense competition

There are many national and international competitors fighting for market share in the fiercely competitive automotive semiconductor industry. Pricing pressures and margin erosion can result from intense competition, particularly when demand and supply dynamics are changing. Additionally, to stay profitable in a cutthroat industry, semiconductor makers need to constantly innovate, boost operational effectiveness, and set themselves apart from the competition.

Covid-19 Impact:

The COVID-19 pandemic had a major effect on the automotive semiconductor market by changing demand and production dynamics and upsetting the supply chain. Restrictions and lockdowns caused manufacturing facilities to temporarily close, which decreased semiconductor production and resulted in a shortage of supply. As production lines stopped and consumer confidence declined, the automotive industry as a whole saw a sharp decline in sales. Furthermore, the need for car semiconductors for infotainment and connectivity solutions increased as people shifted to using digital services and working from home more often.

The Analog IC segment is expected to be the largest during the forecast period

It is projected that the automotive semiconductor market will be dominated by the analog ICs (Integrated Circuits) segment. Many automotive applications, such as power management, signal processing, and sensor interfacing, depend on analog integrated circuits (ICs). These parts are necessary for the operation of many different systems, including infotainment, battery management, and engine control units. Moreover, real-world signals, such as temperature, pressure, and speed, can be converted by analog integrated circuits (ICs) into digital data that the electronic control units in vehicles can process.

The Passenger Car segment is expected to have the highest CAGR during the forecast period

In the automotive semiconductor market, the passenger car segment is projected to have the highest CAGR. The increasing use of infotainment, connectivity, advanced driver assistance systems (ADAS), and electrification in passenger cars is what is fueling this growth. Automakers are incorporating increasingly advanced semiconductor technologies to improve vehicle performance, safety, and user experience in response to growing consumer demand for safer, more connected, and environmentally friendly vehicles. Additionally, this growth is further fueled by the shift to electric vehicles (EVs), since passenger cars need sophisticated semiconductor solutions for motor control, power conversion, and battery management.

Region with largest share:

The Asia-Pacific region holds the largest share of the automotive semiconductor market. Leading automakers and semiconductor firms are based in nations like China, Japan, and South Korea, which are important automotive hubs. The region's well-developed workforce, strong government support for the electronics and automotive industries, and robust infrastructure all contribute to the market's growth. Furthermore, the significant share of Asia-Pacific in the global automotive semiconductor market is also attributed to the region's quick adoption of electric vehicles, developments in autonomous driving technologies, and rising consumer demand for cutting-edge in-car technologies.

Region with highest CAGR:

In the automotive semiconductor market, the North American region is anticipated to have the highest CAGR. The strong demand for electric vehicles, the considerable progress made in autonomous driving technologies, and the growing incorporation of infotainment and advanced driver-assistance systems (ADAS) in automobiles are the main drivers of this growth. This growth is driven by significant investments in automotive innovation, the presence of leading technology companies, and strong research and development capabilities. Additionally, driving the market are encouraging government policies and incentives for electric vehicles, as well as developments in vehicle connectivity.

Key players in the market

Some of the key players in Automotive Semiconductor market include STMicroelectronics, Renesas Electronics Corporation, Micron Technology, Inc, Analog Devices Inc., NXP Semiconductors N.V, TE Connectivity, Denso, Texas Instruments Inc., ON Semiconductor Corporation, Infineon Technologies AG, ROHM Semiconductor, Semiconductor Components Industries, LLC, Magna International, Allegro Microsystems, Robert Bosch GmbH and Toshiba Corporation.

Key Developments:

In June 2024, Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, and the Indian Institute of Technology Hyderabad (IITH) have signed a three-year memorandum of understanding (MOU) for research and collaboration in the field of VLSI and embedded semiconductor systems.

In April 2024, STMicroelectronics, , a global semiconductor leader serving customers across the spectrum of electronics applications, and Centrica Energy Trading A/S announced that they have signed a ten-year Power Purchase Agreement (PPA) for the supply of renewable energy to its operations in Italy, starting January 2025. The agreement is based on the sale by Centrica of approximately 61 GWh of renewable energy per year, produced by a new solar farm in Italy.

In February 2024, Toshiba Energy Systems and Solutions Corporation and Bekaert, have entered into a global partnership which includes a strategic cooperation agreement, and a manufacturing technology license for Membrane Electrode Assemblies (MEA), a key component for Proton Exchange Membrane (PEM) electrolyzers that will help to accelerate the advance towards green hydrogen production.

Components Covered:

• Processor
• Microcontrollers
• Analog IC
• Discrete Power Device
• Sensors
• Memory Devices
• Lighting Device
• Other Components

Vehicle Types Covered:

• Passenger Car
• Light Commercial Vehicle (LCV)
• Heavy Commercial (HCV)
• Other Vehicle Types

Fuel Types Covered:

• Gasoline
• Diesel
• Electric Vehicle

Applications Covered:

• Powertrain
• Advanced Driver Assistance Systems (ADAS)
• Safety
• Body Electronics
• Chassis
• Telematics and Infotainment
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances