Automotive Semiconductor Market Size, Share, Growth Analysis, By Component(Processors, Sensors, Memory, Discrete Power), By Vehicle Type(Passenger Vehicles, Commercial Vehicles), By Application(Chassis, Powertrain, Safety, Telematics & Infotainment), By Region - Industry Forecast 2024-2031

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). 

Automotive semiconductor companies should target the development of novel automotive silicon-on-chip (SoC) to maximize their business and stay relevant in the future. Collaborating or partnering with semiconductor manufacturers will also be a popular strategy for automotive semiconductor types of market players. Investing in the development and sales of automotive semiconductors for electric vehicles is also a lucrative opportunity for all automotive semiconductor providers going forward.  'Infineon Technologies AG (Germany) ', 'NXP Semiconductors N.V. (Netherlands) ', 'Renesas Electronics Corporation (Japan) ', 'STMicroelectronics N.V. (Switzerland) ', 'Texas Instruments Incorporated (USA) ', 'Robert Bosch GmbH (Germany) ', 'Analog Devices, Inc. (USA) ', 'ON Semiconductor Corporation (USA) ', 'Toyota Motor Corporation (Japan) ', 'Continental AG (Germany) ', 'DENSO Corporation (Japan) ', 'BorgWarner Inc. (USA) ', 'Allegro Microsystems, Inc. (USA) ', 'Micron Technology, Inc. (USA) ', 'Qualcomm Incorporated (USA) ', 'Microchip Technology Incorporated (USA) ', 'ROHM Co., Ltd. (Japan) ', 'Murata Manufacturing Co., Ltd. (Japan) ', 'Toshiba Corporation (Japan) ', 'Hyundai Motor Company (South Korea)'

High emphasis on sustainability and advancements in battery technology have helped the popularity of electric vehicles. Demand for automotive semiconductors is also projected to be driven by electric vehicles in the future.   

Cybersecurity: As digitization picks up pace the risk of cyber attacks also increases and this is also true for the automotive industry. Therefore, automotive semiconductor companies should invest in the development of automotive semiconductors with built-in security features to stay future-ready and stand out from the competition.

India, China, Japan, and South Korea are home to some of the biggest automotive semiconductor manufacturers countries in the world. Rising electrification of vehicles, evolving consumer preferences, and growing use of advanced safety and infotainment systems are also slated to help this region’s dominance going forward. This region also benefits from the already existing robust semiconductor manufacturing industry in countries such as Taiwan, China, and Japan.