Home Automotive and Transportation Automotive Semiconductor Market Size, Top Companies & Forecast Report by 2033

Automotive Semiconductor Market Size, Share & Trends Analysis Report By Component (Processor, Discrete Power, Sensor, Memory, Others), By Vehicle Type (Passenger Vehicle, Light Commercial Vehicle (LCV), Heavy Commercial (HCV)), By Application (Chassis, Powertrain, Safety, Telematics & Infotainment, Body Electronics), By Propulsion Type (Internal combustion engine, Electric) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Report Code: SRAT1934DR
Last Updated : Feb 10, 2025
Author : Chetan Patil
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Automotive Semiconductor Market Size

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).

An automotive semiconductor is an electronic component used in vehicles to control various functions, including power management, safety systems, infotainment, and advanced driver-assistance systems (ADAS). These semiconductors are designed to withstand harsh automotive conditions such as extreme temperatures, vibrations, and electromagnetic interference. They play a crucial role in modern vehicles by enabling efficient fuel management, reducing emissions, and enhancing connectivity and automation. With the rise of electric and autonomous vehicles, the demand for high-performance automotive semiconductors continues to grow, driving innovation in chip design and integration.

The global automotive semiconductor market growth is primarily driven by the increasing demand for advanced driver-assistance systems (ADAS), electric vehicles (EVs), and autonomous driving technologies, which require high-performance semiconductors for enhanced safety, energy efficiency, and automation. Moreover, the shift towards connected vehicles with internet access, smart sensors, and infotainment systems further boosts the demand for semiconductors. The rapid adoption of electric vehicles, which are powered by power management, battery management, and charging solutions, also plays a critical role in driving market growth.

Historic Market Size (2020-2023)
Year USD Billion
2020 35.73
2021 41.43
2022 45.64
2023 47.86

Source: Straits Research

Exclusive Market Trends

Increasing electrification of vehicles

As manufacturers shift from traditional internal combustion engines to EVs, there is a growing demand for advanced power electronics, battery management systems, and efficient charging solutions. This trend is supported by government policies promoting sustainability, reduced carbon emissions, and energy efficiency. The rise in EV adoption requires semiconductors for enhanced power control, energy storage, and performance optimization, further accelerating the electrification of the automotive sector.

  • In October 2024, STMicroelectronics introduced its fourth-generation STPOWER silicon carbide (SiC) MOSFET technology, setting new standards in power efficiency, density, and robustness. Optimized for traction inverters in electric vehicle (EV) powertrains, the new technology serves both automotive and industrial markets. STMicroelectronics plans further advancements in SiC technology through 2027.

This innovation is designed to enhance EV traction inverter platforms, supporting the growth of the EV market and addressing the challenge of delivering more affordable electric vehicles.

Rise of autonomous driving systems

Autonomous driving technologies rely heavily on high-performance semiconductors to process vast amounts of data from AI, sensor fusion, and real-time decision-making systems. These semiconductors integrate inputs from multiple sensors such as cameras, radar, and LiDAR to help vehicles navigate complex environments safely. Efficient data processing is crucial for split-second decision-making, ensuring accuracy, reliability, and seamless operation of autonomous systems.

  • For instance, in 2023, NVIDIA introduced the Drive Orin platform, a state-of-the-art solution designed to power Level 4 and Level 5 autonomous vehicles. With exceptional computing capabilities, Drive Orin delivers high-speed data processing for AI-driven decision-making, enabling fully autonomous driving without human intervention.

This breakthrough supports the evolution of self-driving technology by providing the robust processing power required for real-time navigation, safety, and operational efficiency.


Automotive Semiconductor Market Growth Factors

Advancements in ADAS and autonomous vehicles

The growing adoption of Advanced Driver Assistance Systems (ADAS) is driving a surge in demand for key technologies like LiDAR, radar, and AI-capable processors. These components are essential for enhancing vehicle safety and automation by providing real-time data processing and sensor fusion. Tesla's Full Self-Driving (FSD) system exemplifies this shift, heavily relying on AI algorithms and semiconductor technology to enable features like autonomous navigation. As automakers increasingly adopt ADAS and FSD, the demand for sophisticated semiconductors is accelerating, fueling market growth.

  • In December 2024, DENSO CORPORATION and Onsemi announced an expanded long-term collaboration to enhance autonomous driving (AD) and advanced driver assistance systems (ADAS). Both companies aim to further strengthen this partnership for future automotive advancements.

Increasing consumer demand for smart features

Consumers are increasingly seeking smarter vehicles that offer enhanced safety, connectivity, and infotainment systems, which drives the demand for advanced semiconductor solutions. Modern vehicles now integrate features like real-time navigation, voice recognition, autonomous driving assistance, and seamless connectivity with mobile devices. These systems require high-performance chips capable of processing vast amounts of data efficiently.

To meet these expectations, automotive manufacturers rely on innovative semiconductor technologies for faster, more reliable, and energy-efficient solutions, shaping the future of intelligent vehicles.

  • In January 2024, Cinemo, a global leader and highly innovative one-stop-shop provider for fully integrated digital media products, announced a series of new in-car infotainment innovations that build on and continue to enrich its core product offerings—taking automotive digital media experiences to the next level.

Market Restraint

Shortage of semiconductors

The global semiconductor supply chain is experiencing significant disruptions due to geopolitical tensions, such as trade conflicts and political instability, as well as production constraints in key regions. These challenges have led to shortages in critical semiconductor components, particularly those needed for automotive production.

As a result, automakers are facing delays in manufacturing vehicles as the availability of semiconductors becomes unpredictable. The increased demand for semiconductors, combined with limited production capacity, exacerbates supply chain bottlenecks, impacting the automotive industry’s overall output and timelines.

Market Opportunity

Growth in EV charging infrastructure

The expansion of EV charging infrastructure presents substantial opportunities for semiconductor manufacturers. As the demand for electric vehicles grows, the need for efficient and reliable charging solutions intensifies. Semiconductor components are crucial in power management, energy conversion, and fast-charging technologies. Therefore, manufacturers are increasingly supplying chips for charging stations, battery management systems, and power electronics.

  • For instance, in 2023, ABB introduced the Terra 360, a high-power EV charger capable of delivering up to 360 kW, making it one of the fastest EV chargers available. The charger integrates advanced semiconductor components to optimize energy conversion and minimize power loss, enhancing charging efficiency for electric vehicles.

This shift toward widespread EV infrastructure creates a growing market for semiconductors, driving innovation and demand in the automotive and energy sectors.

Study Period 2021-2033 CAGR 6.22%
Historical Period 2021-2023 Forecast Period 2025-2033
Base Year 2024 Base Year Market Size USD 50.43 Billion 
Forecast Year 2033 Forecast Year Market Size USD 86.81 Billion
Largest Market North America Fastest Growing Market Asia Pacific
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Regional Insights

North America: Largest Market Share

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. Stricter emission regulations and the shift toward fully autonomous vehicles further accelerate market growth. However, ongoing supply chain disruptions and geopolitical uncertainties pose challenges to semiconductor availability and production.

Asia Pacific (APAC): Fastest Growth

Asia-Pacific is experiencing the fastest growth in the global automotive semiconductor market, propelled by rapid advancements in EV technology and ADAS adoption. Countries like China, Japan, and South Korea are leading the charge, supported by strong government policies, financial incentives, and extensive EV infrastructure development. China, in particular, dominates the market with its massive automotive manufacturing base and aggressive push for domestic semiconductor production to reduce reliance on foreign suppliers.

Countries Insights

  • United States:The United States leads the automotive semiconductor market in North America, which is driven by the rapid adoption of EVs, ADAS, and infotainment technologies. Major players such as Tesla and General Motors, combined with government policies supporting EV manufacturing, are accelerating demand. R&D investments in autonomous vehicles further bolster growth, with Silicon Valley emerging as a hub for innovation in automotive electronics.
  • China: China’s automotive semiconductor market dominates the Asia-Pacific, fueled by its leadership in electric vehicle (EV) production and adoption. Domestic brands like BYD and Geely integrate advanced semiconductor solutions for infotainment and powertrain systems. With a robust EV infrastructure and supply chain, China is rapidly advancing towards self-sufficiency in semiconductor manufacturing to reduce reliance on foreign imports.
  • India:India’s automotive semiconductor market is a fast-growing player, driven by its increasing focus on EV adoption and smart mobility solutions. Initiatives like the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme are boosting EV production and demand. Automotive manufacturers are incorporating semiconductors into telematics, safety systems, and vehicle electrification, reflecting India’s transition toward more connected and sustainable vehicles.
  • South Korea:South Korea is a significant market, with industry giants Samsung and Hyundai driving semiconductor integration in EVs and autonomous vehicles. With a strong electronics manufacturing base, South Korea is developing cutting-edge ADAS, infotainment, and power management solutions. The country’s focus on autonomous vehicle technology and 5G connectivity further strengthens its role in the global automotive semiconductor industry.
  • Brazil:Brazil is emerging as a key player in South America, with EV infrastructure expansion and government subsidies stimulating demand. Local automakers are integrating advanced semiconductor solutions for vehicle electrification and safety systems. As semiconductor supply chains expand, Brazil is positioning itself as a regional leader in automotive technology and sustainable transportation solutions.
  • United Arab Emirates (UAE):The UAE is becoming a regional leader in the Middle East, leveraging its investment in smart and autonomous mobility. Iconic projects like Dubai’s autonomous taxis and the adoption of electric buses underscore its focus on integrating cutting-edge semiconductor solutions. Government funding for sustainable and smart mobility supports this growth.
  • Australia:Australia is advancing in the automotive semiconductor market, focusing on sustainable transportation and EV infrastructure. Automakers are increasingly incorporating semiconductors for ADAS, battery management, and powertrain efficiency. With growing investments in clean energy mobility solutions, Australia is also positioning itself as a future leader in eco-friendly automotive technologies.
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Segmentation Analysis

By Component Insights

Processors dominate this segment as they are the backbone of modern automotive systems, enabling advanced technologies such as autonomous driving, ADAS, and vehicle-to-everything (V2X) communication. These chips handle complex computations, AI-driven data analytics, and real-time decision-making, which are critical for safety and performance. The increasing integration of processors in electric vehicles (EVs) for battery management and infotainment systems further cements their dominance as automakers prioritize high-performance, efficient, and reliable semiconductor solutions to meet consumer expectations and regulatory standards.

By Vehicle Type Insights

Passenger vehicles are the dominant segment due to their widespread adoption of advanced features like adaptive cruise control, lane-keeping assistance, and premium infotainment systems. Consumers increasingly demand smarter and more connected vehicles, driving higher semiconductor integration. Moreover, the rising popularity of electric passenger cars further amplifies the need for sophisticated semiconductors in power management, safety, and connectivity systems. Automakers’ focus on enhancing the passenger experience through technology gives this subsegment a clear edge over commercial vehicles.

By Application Insights

Telematics and infotainment systems dominate the application segment, as they combine real-time navigation, emergency assistance, and entertainment features into a seamless experience. The growing trend of connected cars enhances this demand, as these systems require sophisticated semiconductors to manage data-intensive operations efficiently. As consumers increasingly prioritize in-car connectivity, automakers incorporate advanced chips to enable voice recognition, streaming services, and smartphone integration, making telematics and infotainment a pivotal application in the global automotive semiconductor market.

By Propulsion Type Insights

Electric vehicles (EVs) dominate the propulsion type segment due to their reliance on semiconductors for critical functions such as power management, battery efficiency, and charging capabilities. With governments and automakers globally committing to EV adoption, the demand for semiconductors in power electronics and battery management systems has surged. Advanced chips ensure optimal energy conversion, heat dissipation, and fast charging, addressing consumer concerns about range and performance, making semiconductors indispensable to the growth and development of the EV market.

Market Size By Component

Market Size By Component
Processor Discrete Power Sensor Memory Others

Company Market Share

Key market players are leveraging technological advancements, strategic expansions, and collaborations to strengthen their market presence. Emerging players are increasingly contributing by introducing innovative solutions such as smart ticketing, autonomous transportation technologies, and electric vehicle (EV) integrations.

SiliconAuto: An Emerging Player in the Global Automotive Semiconductor Market

SiliconAuto is a joint venture formed by Stellantis and Foxconn, combining the strengths and expertise of both companies to create cutting-edge semiconductor solutions for the automotive industry. The company aims to develop and supply advanced chips tailored specifically for the next generation of vehicle platforms, starting in 2026.

Recent Developments:

  • In June 2023, Stellantis N.V. and Hon Hai Technology Group (“Foxconn”) announced the creation of SiliconAuto, a 50/50 joint venture -SiliconAuto to Design and Sell State-of-the-art Semiconductors for the Automotive Industry. Products from SiliconAuto will support the future semiconductor needs of Stellantis, Foxconn, and other customers.

List of key players in Automotive Semiconductor Market

  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
Automotive Semiconductor Market Share of Key Players

Recent Developments

  • January 2025 – Hyundai Motor Group announced a strategic partnership with NVIDIA to advance AI technologies in smart mobility solutions. The collaboration aims to enhance software-defined vehicles, robotics, and business operations by integrating AI. Hyundai will utilize NVIDIA’s accelerated computing and AI Enterprise software for data management and training AI models.
  • May 2024Infineon 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.

Analyst Opinion

As per our analyst, the global market is poised for significant expansion, with strong growth expected over the next decade. Urbanization, advancements in EVs, autonomous driving technologies, and the push for sustainable transportation will drive demand for automotive semiconductors. To capitalize on this trend, companies should focus on developing innovative solutions that cater to electric drivetrains, ADAS, and in-car infotainment systems.

However, challenges such as high investment costs, supply chain constraints, and the complexity of integrating advanced semiconductors into diverse vehicle platforms must be addressed. Companies should prioritize strategic partnerships, R&D, and scalability in production to meet growing demand.

Moreover, as governments and cities invest in smart infrastructure and electric mobility, semiconductor suppliers should align their offerings with the shift towards autonomous systems and multi-modal transport solutions. This proactive approach will be key to securing long-term market leadership.


Automotive Semiconductor Market Segmentations

By Component (2021-2033)

  • Processor
  • Discrete Power
  • Sensor
  • Memory
  • Others

By Vehicle Type (2021-2033)

  • Passenger Vehicle
  • Light Commercial Vehicle (LCV)
  • Heavy Commercial (HCV)

By Application (2021-2033)

  • Chassis
  • Powertrain
  • Safety
  • Telematics & Infotainment
  • Body Electronics

By Propulsion Type (2021-2033)

  • Internal combustion engine
  • Electric

Frequently Asked Questions (FAQs)

How much was the global market worth in 2024?
The global automotive semiconductor market size was valued at USD 50.43 billion in 2024.
Processors dominate this segment as they are the backbone of modern automotive systems, enabling advanced technologies such as autonomous driving, ADAS, and vehicle-to-everything (V2X) communication.
Advancements in ADAS and autonomous vehicles driving the market.
Top 10 players present globally are NXP Semiconductors, Infineon Technologies, Texas Instruments, STMicroelectronics, ON Semiconductor, Renesas Electronics, Qualcomm, Analog Devices, Microchip Technology and Marvell Technology.
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.


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