PUBLISHER: The Business Research Company | PRODUCT CODE: 1753846
PUBLISHER: The Business Research Company | PRODUCT CODE: 1753846
Automotive semiconductors are specialized electronic components designed to manage and control various functions within vehicles. These semiconductors are integral to modern automotive systems, facilitating operations such as engine management, infotainment, safety systems, and advanced driver-assistance systems (ADAS).
The automotive semiconductor market consists of sales of semiconductor components and integrated circuits (ICs) used in vehicles by entities (organizations, sole traders, and partnerships) that manufacture and supply automotive-grade semiconductors. These semiconductors enable critical vehicle functionalities, including power management, connectivity, automation, and safety systems.
The global automotive semiconductor market was valued at $42,222.68 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 7.00%.
Rise In Adoption Of Electric Vehicles
The rise in adoption of electric vehicles fueled the growth of the automotive semiconductor market during the historic period. Electric vehicles are automobiles powered by electric motors using energy stored in rechargeable batteries, offering a sustainable alternative to conventional fuel-powered vehicles. The rise in adoption of electric vehicles is driven by factors such as environmental concerns, government incentives, and advancements in battery technology, with environmental concerns being a key driver as they reduce carbon emissions and dependence on fossil fuels, contributing to a cleaner and greener future. Automotive semiconductors are adopted for enhancing energy efficiency, enabling advanced power management, and supporting innovative features such as battery management systems and autonomous driving technologies. For instance, in January 2024, according to the International Council on Clean Transportation, a US-based non-profit organization, since the third quarter of 2021, quarterly electric vehicle (EV) sales have consistently risen, with their share of total light-duty vehicle sales climbing from approximately 3% in the first quarter of 2021 to over 10% by the third quarter of 2023. Therefore, the rise in adoption of electric vehicles drove the growth of the automotive semiconductor market.
Advancements In Automotive Semiconductor Technology With Ultra-Wideband UWB And RISC V Microcontrollers
Major companies operating in the automotive semiconductor market are focusing on developing advanced technology, such as ultra-wideband (UWB) technology, to enhance secure keyless entry, enable precise in-cabin positioning, improve wireless communication between devices, and support advanced driver-assistance systems (ADAS) for a seamless and connected driving experience. Ultra-Wideband (UWB) technology is a short-range wireless communication protocol that uses low-power, high-frequency radio waves to enable precise distance measurement and secure data transmission. For example, in March 2025, Infineon Technologies AG, a US-based semiconductor manufacturing company, Introduced the first automotive-grade RISC-V microcontroller family. These microcontrollers offer high-performance real-time processing, enabling enhanced control over automotive powertrain, body, and safety systems. They are designed with scalable architecture, allowing flexibility across various automotive applications, from basic control units to complex domain controllers. The integration of functional safety and cybersecurity features ensures compliance with ISO 26262 and protects against cyber threats.
The global automotive semiconductor market is highly concentrated, with a small number of large players dominating the market. The top ten competitors in the market made up to 61.26% of the total market in 2023.
Automotive Semiconductor Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global automotive semiconductor market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for automotive semiconductor? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The automotive semiconductor market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider automotive semiconductor market; and compares it with other markets.
Recent Developments - Information on recent developments in the market covered in the report.