Global Automotive Semiconductor Market Size, Share, Growth Analysis, By Component (Microcontrollers (MCUs), Memory Devices), By Vehicle(Passenger Vehicles, Commercial Vehicles), By Application(Powertrain, Chassis) - Industry Forecast 2023-2030

Global Automotive Semiconductor Market size was valued at USD 43.26 billion in 2022 and is poised to grow from USD 46.8 billion in 2023 to USD 87.2 billion by 2031, growing at a CAGR of 8.1% in the forecast period (2024-2031).

In recent years, the global market for automotive semiconductors has been influenced by changes in consumer preferences and technological advancements in the automotive industry. The increasing popularity of electric vehicles, autonomous driving features, and connectivity solutions has led to a growing demand for advanced semiconductor technologies. This demand is further surged by the integration of complex systems like Advanced Driver Assistance Systems (ADAS) and infotainment systems, which require innovative semiconductor solutions. Moreover, there is a noticeable trend towards the development of more efficient and specialized semiconductors tailored for specific automotive applications. However, the market is also facing challenges due to a worldwide shortage of semiconductor chips, impacting the production capacities of automotive manufacturers. Despite these challenges, the future outlook for the market remains promising, driven by the ongoing development of smart and connected vehicles. As technology continues to evolve, the demand for advanced semiconductor solutions in the automotive industry is expected to remain strong, catering to the growing needs and preferences of consumers worldwide.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Semiconductor Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Semiconductor Market Segmental Analysis

The global automotive semiconductor market is segmented on the basis of component, vehicle, application, and region. By components, the market is segmented into microcontrollers (MCUs), memory devices, analog ICs, sensors, connectivity ICs, power management ICs. By vehicle type, the market is segmented into passenger vehicles, commercial vehicles, electric vehicles (EVs), hybrid vehicles. By application, the market is segmented into, powertrain, chassis, advanced driver assistance systems (ADAS), safety systems, infotainment and telematics, and others. By region, the market is segmented into Asia-Pacific, North America, Europe, Latin America, and Middle East & Africa.

Drivers of the Global Automotive Semiconductor Market

The adoption of cutting-edge technologies in the automotive industry, including electric vehicles, autonomous driving features, and connectivity solutions, is a major driving force. The growing incorporation of intricate systems like Advanced Driver Assistance Systems (ADAS) and advanced infotainment systems surges the need for innovative semiconductor solutions. Furthermore, the automotive industries globally shift towards more environmentally friendly alternatives drives the demand for specialized semiconductors. Additionally, increasing consumer demands for safety, efficiency, and connectivity in vehicles is contributing to the market's growth.

Restraints in the Global Automotive Semiconductor Market

A significant market restraint arises from the continuous global shortage of semiconductor chips, which hampers automotive manufacturers' production capacities and results in delays and disruptions across supply chains. Another constraint stems from the intricate and sophisticated nature of automotive semiconductors, necessitating advanced technologies and substantial investments for their design and manufacturing. Additionally, the heightened demand for electric vehicles (EVs) and the swift advancement of autonomous driving technologies add further strain on semiconductor supply chains.

Market Trends of the Global Automotive Semiconductor Market

The increasing use of semiconductors in electric vehicles shows the automotive industry's transition towards sustainable mobility solutions. This trend is driven by the growing adoption of advanced driver-assistance systems (ADAS), which stimulate semiconductor innovation to create safer and more autonomous driving experiences. Additionally, the emergence of connected vehicles and the evolution towards smart mobility are fuelling demand for semiconductor solutions that enhance connectivity, infotainment, and telematics features in vehicles. Moreover, there is a noticeable shift towards semiconductor specialization, with companies designing customized solutions for specific automotive applications.