Automotive Semiconductor Market size was over USD 45.03 Billion in 2023 and is poised to exceed USD 119.41 Billion by the end of 2036, growing at over 8.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of automotive semiconductor is estimated at USD 46.98 Billion. The growth of the market can primarily be attributed to the rising use of innovative technologies in the automotive sector, along with the growing demand for automotive semiconductors worldwide. It is estimated that the average modern vehicle can have over 1,200 different semiconductor chips.
Today, most technologically advanced automobiles manufactured, use semiconductor devices for several critical functions such as power management, displays and control, sensing, and safety features of the vehicle. The critical charging infrastructure necessary to make electric vehicles viable is created by semiconductors in the form of power devices and solar cells. Automotive semiconductors have more applications in hybrid and electric vehicles (EVs), which are growing significantly, and are expected to create massive revenue generation opportunities for the key players operating in the global automotive semiconductor market during the forecast period. It was found that the global sales of electric cars in the first quarter of 2022, were 2 million.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8.4% |
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Base Year Market Size (2023) |
USD 45.03 Billion |
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Forecast Year Market Size (2036) |
USD 119.41 Billion |
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Regional Scope |
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Propulsion Type (Electric, Internal Combustion Engine)
The global automotive semiconductor market is segmented and analyzed for demand and supply by propulsion type into the electric and internal combustion engines. Amongst these segments, the electric segment is anticipated to garner the largest revenue by the end of 2036. Backed by the growing number of electric vehicles along with the surge in the demand for electric cars worldwide. Electric vehicles play a major role in cutting carbon commission and creating less pollution on the roads. This forces government authorities to bring EVs as they are beneficial for the environment. For instance, it is projected that globally, 1 in 2 cars will have an electric powertrain by 2030. Last year more than 1 million electric cars were produced globally.
Application (Body Electronics, Chassis, Powertrain, Safety, Telematics & Infotainment)
The global automotive semiconductor market is segmented and analyzed for demand and supply by application into body electronics, chassis, powertrain, safety, telematics & infotainment. The body electronics segment held the largest market share in 2020 and it is estimated to do so in the forecast year. The leading companies in the automotive business are focusing on safety, convenience, and comfort over style and appearance. Moreover, government rules and strict laws are affecting the market by prioritizing client safety above all. After body electronics, the telematics and infotainment segment is anticipated to hold the highest market share in the forecast period. This can be attributed seeing the technological advancement in the field of cell phones, GPS, and the internet.
Our in-depth analysis of the global market includes the following segments:
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By Propulsion Type |
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By Component |
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By Vehicle Type |
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By Application |
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APAC Market Statistics
Automotive semiconductor market in the Asia Pacific is projected to hold the largest revenue share by the end of 2036. Backed by the presence of the largest automobile manufacturing network in the region, growing demand for automobiles as well as the rising sale of vehicles. For instance, China sold more than 25 million vehicles in 2020, which included 19,994,000 cars and about 5,231,000 commercial vehicles. Owing to the presence of emerging economies consisting of India, South Korea, China, and Indonesia, the automotive semiconductor market is growing. As the demand is increasing for luxurious and comfortable vehicles around the globe. Therefore, the leading automobile manufacturers are focusing on the production of semi-luxury and luxury vehicles that solely relies on automotive semiconductor technology. Increasing disposable income of people and growing demand for luxurious life are factors driving the growth of the automotive semiconductor market in the region. China from the Asia Pacific region held the largest share of the automotive semiconductor market. Owing to its fast advancement in cruise control, infotainment system, and other safety features.
Europe Market Forecast
On the other hand, the market in Europe is anticipated to share significant growth in the forecast period. This can be attributed to the growing demand for electric vehicles in the region. Currently, automobile manufacturers are aiming at creating, developing, and producing innovative automobile vehicles as they have attracted a set of key potential buyers in the automobile-producing regions. Shortly, automotive semiconductors will play a crucial role in the automobile industry. This can be attributed seeing the demand for technologically advanced and smart vehicles in the market.
Author Credits: Saima Khursheed
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