Global Automotive Semiconductor Market Grows Steadily at a CAGR of 6.22%

Introduction

An automotive semiconductor is a specialized electronic component used in vehicles to control various functions, including power management, safety systems, infotainment, connectivity, and autonomous driving. These semiconductors enable modern vehicles to integrate advanced driver assistance systems (ADAS), electric powertrains, real-time navigation, and smart infotainment features. With the rise of electric vehicles (EVs) and autonomous technology, the demand for high-performance and energy-efficient semiconductor solutions continues to grow.

Market Dynamics

Increasing consumer demand for smart features drives the global market

Consumers are increasingly drawn to smart vehicles equipped with advanced safety, connectivity, and infotainment systems, driving the need for cutting-edge semiconductor solutions. Modern cars now feature real-time navigation, voice recognition, autonomous driving assistance, and seamless smartphone integration, all of which require high-performance chips to process vast amounts of data efficiently.

• In January 2024, Cinemo, a global leader in digital media solutions for automobiles, unveiled a new suite of in-car infotainment innovations, further enhancing its core offerings. These advancements aim to elevate the digital media experience, reflecting the growing demand for intelligent, connected vehicles.

As automakers continue to adopt energy-efficient and high-speed semiconductor technologies, the automotive industry is moving toward a more connected and interactive driving experience.

Growth in EV charging infrastructure  creates tremendous opportunities

The rapid expansion of EV charging infrastructure worldwide presents significant opportunities for semiconductor manufacturers. As EV adoption accelerates, the demand for efficient and high-performance charging solutions is rising. Semiconductors play a crucial role in power management, energy conversion, and fast-charging technologies, making them essential for modern charging networks.

• In 2023, ABB launched the Terra 360, a high-power EV charger capable of delivering up to 360 kW, making it one of the fastest chargers available. It incorporates advanced semiconductor components to enhance energy conversion efficiency and minimize power loss, optimizing charging performance.

With the increasing deployment of fast-charging stations, the demand for innovative semiconductor solutions continues to grow, fueling market growth.

Regional Analysis

North America holds the largest share in the global automotive semiconductor market, driven by the widespread adoption of advanced driver-assistance systems (ADAS), electric vehicles (EVs), and in-car connectivity solutions. The United States leads the region, benefiting from a strong automotive industry, significant R&D investments in semiconductor technologies, and a growing focus on autonomous vehicles. Moreover, Canada contributes to market expansion through government incentives promoting EV adoption, while Mexico strengthens the industry with its cost-efficient automotive manufacturing hubs.

Key Highlights

• The global automotive semiconductor market size was valued at USD 50.43 billion in 2024 and is expected to grow from USD 53.57 billion by 2025 to reach USD 86.81 billion by 2033, growing at a CAGR of 6.22% during the forecast period (2025 – 2033).
• Based on Components, the global market is segmented into processors, discrete power, sensor, memory, and others. The processor segment dominates the market during the forecast period.
• Based on Vehicle Type, the global automotive semiconductor market is segmented into passenger vehicles, light commercial vehicles (LCV), and heavy commercial (HCV). The passenger vehicles segment dominated with the highest market share.
• Based on Application, the global market is segmented into chassis, powertrain, safety, telematics & infotainment, and body electronics. The telematics and infotainment systems segment accounted for the largest market.
• Based on Propulsion Type, the global automotive semiconductor market is segmented into internal combustion engines and electric. The electric subsegment accounted for the largest market share.
• North America is the most significant shareholder in the global market.

Competitive Players

1. NXP Semiconductors
2. Infineon Technologies
3. Texas Instruments
4. STMicroelectronics
5. ON Semiconductor
6. Renesas Electronics
7. Qualcomm
8. Analog Devices
9. Microchip Technology
10. Marvell Technology

Recent Developments

• In May 2024 – Infineon Technologies introduced the CoolSiC MOSFET 400 V family, redefining power density and efficiency in AI server power supplies. Designed for the AC/DC stage of AI servers, the new MOSFETs deliver ultra-low conduction and switching losses, achieving 99.5% efficiency and power densities over 100 W/in³. The devices also support solar, energy storage, and industrial applications.

Segmentation

1. By Component
   1. Processor
   2. Discrete Power
   3. Sensor
   4. Memory
   5. Others
2. By Vehicle Type
   1. Passenger Vehicle
   2. Light Commercial Vehicle (LCV)
   3. Heavy Commercial Vehicle (HCV)
3. By Application
   1. Chassis
   2. Powertrain
   3. Safety
   4. Telematics & Infotainment
   5. Body Electronics
4. By Propulsion Type
   1. Internal Combustion Engine
   2. Electric
5. By Region
   1. North America
   2. Europe
   3. Asia-Pacific (APAC)
   4. The Middle East & Africa (MEA)
   5. Latin America (LATAM)