The global automotive semiconductor market was valued at USD 43.26 billion in 2022 and is expected to reach USD 77.76 billion by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 8.1% from 2023 to 2030. This growth is primarily fueled by the increasing integration of electronic components in vehicles, from luxury to mass-produced models, the rising adoption of Electronic Control Units (ECUs) in modern cars, and a strong focus on enhancing vehicle safety systems.

Further contributing to market expansion are factors such as the proliferation of connected cars, advanced infotainment systems, sophisticated automotive safety features, and evolving fuel efficiency standards. The surging demand for electric vehicles (EVs) and hybrid vehicles (HVs) presents a substantial opportunity, as these require specialized semiconductors for crucial functions like Advanced Driver-Assistance Systems (ADAS) and ECUs to manage batteries, motors, and other components. These industry shifts are likely to influence the supply chain, aftermarket, and semiconductor electronic component manufacturers, potentially leading to the replacement of conventional diagnostic systems with onboard diagnostic systems for continuous vehicle monitoring.

According to a report by the International Energy Agency (IEA), EVs are critical in reducing carbon emissions, with global EV adoption increasing by 13% in 2022 compared to 2020. Three key trends—autonomy, electrification, and connected mobility—are anticipated to be major revenue drivers for the global automotive semiconductor market, significantly boosting the demand for electronic components and, consequently, semiconductors in the automotive sector.

Key Market Trends & Insights

• Regional Growth: The Asia Pacific region held over 45% of the global market share in 2022 and is projected to grow at a CAGR of 9.6% from 2023 to 2030. This growth is attributed to the thriving automotive industry in emerging economies like India, China, and Japan.
• Europe is expected to be the second-fastest growing region, expanding at a CAGR of over 7.2% during the forecast period, driven by numerous automotive semiconductor production facilities in Germany, fostering technological advancements, investments, and job creation.
• Component Dominance: The discrete power segment accounted for the largest share, over 28%, of the global automotive semiconductor market, with an anticipated CAGR of 10.9% from 2023 to 2030.
• Vehicle Type: Passenger vehicles commanded the largest market share, exceeding 66% in 2022, and are expected to maintain this dominance throughout the forecast period.
• Application Segment: The body electronics segment held the largest market share, over 23% in 2022, and is projected to grow at a CAGR of 9.1% from 2023 to 2030. This is due to the rising demand for comfort and convenience features like power windows, electric seats, and climate control systems.

Order a free sample PDF of the Automotive Semiconductor Market Intelligence Study, published by Grand View Research.

Market Size & Forecast

• 2022 Market Size: USD 43.26 Billion
• 2030 Projected Market Size: USD 77.76 Billion
• CAGR (2023-2030): 8.1%
• Asia Pacific: Largest market in 2022

Key Companies & Market Share Insights

The automotive semiconductor market is moderately consolidated, featuring both global and regional players. Companies are actively focusing on product launches to expand their offerings and meet consumer demands. For example, in February 2023, NXP Semiconductors increased the production of its S32R41 high-performance radar processors, designed for L2+ autonomous driving and advanced driver-assistance systems (ADAS) solutions, crucial for high-resolution corner and front-facing long-range radars.

Market players are also pursuing acquisitions to broaden their product portfolios and enter untapped markets. In March 2023, Renesas Electronics Corporation, a semiconductor solutions provider, enhanced its RISC-V portfolio by introducing the R9A06G150, its first RISC-V MCU specifically engineered for voice-controlled human-machine interface systems. This collaboration with RISC-V ecosystem partners offers a cost-effective, ready-to-use voice-control system, eliminating the need for prior RISC-V tools and software investments.

Conclusion

The automotive semiconductor market is poised for substantial growth, driven by the increasing sophistication of vehicles through autonomy, electrification, and connected mobility. Asia Pacific and Europe are set to be key growth regions, with discrete power components, passenger vehicles, and body electronics applications leading the charge. As vehicles become more reliant on advanced electronic systems for safety, efficiency, and smart features, semiconductor manufacturers are actively innovating and expanding their product lines and market reach to meet the evolving demands of the automotive industry.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.