Automotive Chip Market to Grow of 10.8% CAGR through 2030
The global automotive chip market is driven by the increasing demand for
electric vehicles, advancements in autonomous driving technologies, and the
growing integration of smart technologies in vehicles. These innovations
require more sophisticated semiconductor solutions, driving market growth.
These factors are the factors driving the market in the forecast period
2026-2030.
According to TechSci Research report, “Automotive Chip Market – Global
Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”,
The Global Automotive Chip Market was valued at USD 51.32 Billion in 2024 and
is expected to reach USD 94.95 Billion by 2030 with a CAGR of 10.8% during the
forecast period.
The automotive chip sector is expanding rapidly, driven by the rising
adoption of advanced technologies in vehicles. As cars incorporate more
autonomous systems, driver-assistance features, and electric powertrains, the
demand for high-tech semiconductors has surged. This shift toward greater
electronic integration is reshaping the automotive landscape and fueling market
growth for automotive chip producers.
The increasing shift to electric vehicles (EVs) plays a central role in
this expansion. As automakers strive for better performance and sustainability,
they require a variety of specialized chips, including those for power and
battery management. In addition, breakthroughs in connectivity technologies
like 5G and vehicle-to-everything (V2X) communication systems are creating
fresh prospects for semiconductor manufacturers. The rising focus on safety and
automation through advanced driver-assistance systems (ADAS) is further
enhancing the demand for chips that support automation and enhance vehicle
functionality.
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in-depth TOC on "Automotive Chip Market"
Global Automotive
Chip Market Is Segmented by Vehicle Type, By Type, By Application, and By
Region.
Based on Vehicle Type, The automotive chip market
is segmented by vehicle type into passenger cars and commercial vehicles.
Passenger cars have become increasingly reliant on advanced electronics to
enhance driver experience, safety, and connectivity. These vehicles incorporate
a variety of semiconductor components that support features such as
infotainment systems, advanced driver-assistance systems (ADAS), and electric
vehicle (EV) powertrains. As the automotive industry shifts toward
electrification and more intelligent vehicle systems, the need for
sophisticated chips in passenger cars continues to rise. Technologies such as
autonomous driving, electric mobility, and enhanced infotainment are key areas
driving semiconductor demand in this segment.
Commercial vehicles,
including trucks and buses, also play a crucial role in the automotive chip
market. The growing focus on improving fleet management, fuel efficiency, and
safety features in commercial vehicles has led to an increased use of automotive
chips. These vehicles are incorporating advanced telematics, GPS systems, and
fuel management solutions, along with ADAS for driver safety and efficiency.
The need for durable, high-performance chips is particularly high in commercial
vehicles due to the demanding nature of their operations. With the adoption of
electric powertrains and automation in commercial transport, semiconductor
demand is expected to rise further, as these vehicles integrate new
technologies to meet environmental regulations and improve operational
efficiency.
Both passenger cars and
commercial vehicles face the ongoing challenge of meeting evolving regulatory
standards, including emissions and safety requirements, which further drive the
demand for sophisticated semiconductor solutions. As technological advancements
continue to reshape the automotive sector, the demand for specialized chips in
both segments is expected to rise, influencing the broader automotive chip
market.
Based on region, The Asia-Pacific region is
expected to be the fastest-growing market for automotive chips in 2024. This
growth can be attributed to the rapid advancements in electric vehicle (EV)
adoption, increasing demand for autonomous driving technologies, and the rising
penetration of advanced driver-assistance systems (ADAS) in the region. Several
countries in Asia, particularly China, Japan, and South Korea, are leading the
charge in the production and adoption of electric vehicles, creating a
substantial demand for power management chips, battery management systems, and
other semiconductor components.
The strong automotive
manufacturing base in Asia-Pacific contributes to the heightened demand for
automotive chips. As manufacturers invest in smart manufacturing techniques and
vehicle electrification, the need for more sophisticated chips increases. In
addition, the region's focus on enhancing connectivity through technologies
such as 5G and vehicle-to-everything (V2X) communication is further propelling
chip demand. With countries like China pushing for stricter environmental
regulations and promoting sustainable vehicle production, the market for
automotive chips in the Asia-Pacific region is expected to experience
significant growth in the coming years. The rise of smart mobility solutions
and continued innovation in vehicle technologies will further drive this trend
throughout 2024.
Major Market Players
Operating in Global Automotive Chip Market Are:
- NXP Semiconductor NV
- Infineon Technologies AG
- Renesas Electronics Corporation
- STMicroelectronics NV
- Toshiba Electronic Devices & Storage
Corporation (Toshiba Corporation)
- Texas Instrument Inc.
- Robert Bosch GmbH
- Micron Technology Inc.
- Analog Devices Inc.
- ROHM Co. Ltd.
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The Automotive Chip Market is experiencing
significant growth, driven by the increasing demand for advanced and efficient
automotive technologies, particularly in the development of lightweight and
high-performance vehicles. Manufacturers are prioritizing the creation of
vehicles that enhance fuel efficiency, durability, and minimize environmental
impact, which in turn fuels the demand for innovative semiconductor solutions.
Stricter regulations focused on reducing emissions and improving overall vehicle
performance are pushing the need for more precise and reliable components in
automotive production. As the automotive industry transitions toward more
sustainable and fuel-efficient designs, the demand for high-performance chips
that support advanced vehicle systems is expected to rise. This shift towards
cutting-edge technology in areas such as electric mobility, automation, and
connectivity will continue to play a major role in expanding the automotive
chip market in the coming years", according to Mr. Karan Chechi, Research
Director of TechSci Research, a global research-based management consulting
firm, these trends are expected to contribute significantly to the market's
expansion.
“Automotive Chip Market– Global
Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle
Type (Passenger Cars, Commercial Vehicles), By Type (Analog ICs,
Microcontrollers & Microprocessors, Logic ICs), By Application (Chassis,
Power Electronics, Safety, Body Electronics, Infotainment and Other
Applications), By Region, By Competition, 2020-2030F”, assesses the market's
future growth potential and provides data on market size, trends, and
forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the Global Automotive
Chip Market.
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