Automotive Semiconductor Market Size (2024 - 2029)

Automotive Semiconductor Market Analysis

The Automotive Semiconductor Market size is estimated at USD 72.71 billion in 2024, and is expected to reach USD 123.27 billion by 2029, growing at a CAGR of 11.14% during the forecast period (2024-2029).

• The automobile industry has transformed rapidly over the past few years with the advent of numerous advanced technologies, such as 3D mapping applications, electric vehicles, and automobile automation. This has increased the demand for several advanced semiconductors, including sensors, memory devices, ICs, and many more.
• Growth in automotive semiconductor sales globally mainly depends on vehicle sales and production trends, along with the increase in semiconductor deployment per vehicle, driven by the proliferation of electronic elements throughout the car. Due to the high degree of regulatory scrutiny and safety requirements worldwide, the automotive semiconductor market is characterized by zero-defect quality processes, stringent qualification processes, functionally safe design architecture, extensive design-in timeframes, high reliability, and long product life cycles, which would lead to significant demand for semiconductors in the automotive sector.
• According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2023, over 93 million automobiles were manufactured worldwide. This was an increase of around 10% from 2022. The COVID-19 pandemic led to various changes in car buying behavior and customer attitudes. People readily accept digital services and features to stay connected, safe, and trackable.
• Hence, the increasing penetration of in-vehicle screens is expected to lead to the easy integration of many other digital features. Virtual assistants, voice recognition, personalization, and gesture control may also experience increased demand for growing concerns over touching surfaces. The automotive market is racing toward standardization, and A-PHY (serializer-deserializer (SerDes) physical layer interface) is expected to be the leading connectivity solution. The automotive ecosystem is merging around this standard, and it is expected that A-PHY will soon become a dominant connectivity solution in cars worldwide. However, the automotive semiconductor market is likely to face compelling challenges because of operating flaws in climatic conditions like extreme cold and heat.
• Post-COVID-19, various companies in the market are involved in different strategies, such as launches, acquisitions, and mergers, to gain a competitive edge.

Automotive Semiconductor Industry Segmentation

The market for automotive semiconductors was evaluated by analyzing the market sizes of different components used in the automotive industry, such as sensors, processors, memory devices, discrete power devices, and integrated circuits. The report’s scope comprises analyzing various vehicle types worldwide, including light commercial vehicles, heavy commercial vehicles, and passenger vehicles.

The automotive semiconductor is segmented by vehicle type (passenger vehicle, light commercial vehicle, and heavy commercial vehicle), component (processors, sensors, memory devices, integrated circuits, discrete power devices, and RF devices), application (chassis, power electronics, safety, body electronics, comfort/entertainment unit, and other applications), and geography (North America, Europe, Asia-Pacific, Latina America, and Middle East & Africa). The report offers the market size in value terms in USD for all the abovementioned segments.