Commercial Vehicles Semiconductor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Processor, Analog IC, Discrete Power Device, Sensor, Memory Device), By Application Type (Powertrain, Safety, Body Electronics, Chassis, Telematics & Infotainment) By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 30.61 Billion
CAGR (2026-2031)	6.93%
Fastest Growing Segment	Telematics & Infotainment
Largest Market	Asia Pacific
Market Size (2031)	USD 45.76 Billion

Market Overview

The Global Commercial Vehicles Semiconductor Market will grow from USD 30.61 Billion in 2025 to USD 45.76 Billion by 2031 at a 6.93% CAGR. Commercial vehicle semiconductors are specialized electronic components, such as microcontrollers, sensors, and power integrated circuits, designed to manage powertrain, safety, and telematics functions in trucks, buses, and vans. The market is primarily driven by stringent government regulations regarding emissions and vehicle safety, which necessitate higher silicon content per unit, alongside the expanding logistics sector that fuels demand for light commercial vehicles. According to the European Automobile Manufacturers’ Association, in 2024, new van sales in the European Union increased by 8.3%, reaching nearly 1.6 million units. This specific growth in vehicle volume directly supports the increasing requirement for electronic control units and connectivity modules within the global supply chain.

However, a significant challenge impeding market expansion is the current economic volatility which impacts capital expenditure for fleet operators. High interest rates and inflationary pressures have led to delayed fleet renewal cycles, particularly in the heavy-duty segment, thereby reducing the immediate production volumes of large commercial vehicles and limiting the addressable market for semiconductor suppliers. Furthermore, infrastructure gaps for electric charging continue to slow the mass adoption of electric trucks, delaying the expected revenue surge from high-value power electronics associated with fleet electrification.

Key Market Drivers

The accelerated adoption of electric and hybrid commercial vehicle powertrains is significantly reshaping the semiconductor landscape by demanding higher volumes of power electronics. This shift necessitates advanced components, such as Silicon Carbide (SiC) inverters and battery management integrated circuits, to handle high-voltage requirements and optimize vehicle range. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global sales of electric trucks increased by 35% in 2023, surpassing 54,000 units. Such growth in electrification directly compels suppliers to scale production of specialized power modules to meet the rising fleet electrification targets and supports the deployment of charging infrastructure hardware.

Simultaneously, the proliferation of Advanced Driver Assistance Systems (ADAS) and safety technologies is increasing silicon content per vehicle to meet rigorous regulatory standards. Governments are enforcing mandates for active safety features, requiring the integration of radar sensors, cameras, and fusion processors to enable capabilities like blind-spot monitoring and moving-off information systems. According to the European Association of Abnormal Road Transport and Mobile Cranes, May 2024, in the 'Updated General Safety Regulations' report, from July 2024, all new trucks sold in the European Union must comply with mandatory advanced safety features. This regulatory push ensures a steady baseline demand for safety-critical microcontrollers. Additionally, broader fleet renewal supports this trend; according to the European Automobile Manufacturers’ Association, in 2024, new EU bus registrations increased by 28.6% in the first half of the year, further driving component orders.

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Key Market Challenges

Economic volatility acts as a substantial restraint on the global commercial vehicle semiconductor market by depressing capital expenditure for fleet operators. High interest rates and inflationary costs force logistics companies to delay fleet renewal cycles, particularly within the capital-intensive heavy-duty segment. When operators choose to extend the service life of existing trucks rather than purchasing new models, original equipment manufacturers reduce their manufacturing output. This contraction in vehicle production directly lowers the volume of orders for essential semiconductor components, such as power integrated circuits and safety sensors, which limits revenue opportunities for chip suppliers.

The decline in the heavy vehicle sector illustrates the severity of this economic pressure. According to the European Automobile Manufacturers’ Association, in 2024, registrations of heavy-duty trucks over 16 tonnes in the European Union decreased by 8.5% compared to the previous year. This reduction in unit sales is particularly detrimental to the semiconductor market because heavy-duty trucks typically require a higher quantity of high-value silicon content for complex powertrain and telematics systems than light commercial vehicles do. Consequently, the slowdown in this specific vehicle segment disproportionately hampers the overall demand for commercial automotive electronics.

Key Market Trends

The deployment of 5G and C-V2X connectivity modules is rapidly advancing as fleet operators prioritize data-driven operational efficiency over simple location tracking. This trend involves integrating high-bandwidth telematics units that enable real-time video streaming, over-the-air software updates, and advanced predictive diagnostics, effectively transforming vehicles into connected edge nodes. Unlike basic regulatory compliance, this shift is fueled by the urgent need to reduce total cost of ownership through granular visibility into driver behavior and fuel usage. According to Verizon Connect, November 2024, in the '2025 Fleet Technology Trends Report', 78% of surveyed commercial fleets in Europe have now integrated GPS fleet tracking technologies to optimize performance, marking a 5 percentage point increase from the previous year.

The integration of High-Performance Computing (HPC) System-on-Chips (SoCs) is fundamentally altering vehicle architectures to support level 4 autonomous trucking. Manufacturers are transitioning from distributed microcontrollers to centralized supercomputing platforms capable of processing massive sensor data streams in real-time. This structural change facilitates the complex path-planning and deep learning required for hub-to-hub logistics, significantly surpassing standard driver assistance capabilities. This surge in demand for centralized processing power is evident in supplier performance; according to Nvidia, February 2024, in the 'Fourth Quarter and Fiscal Year 2024 Financial Results', automotive revenue driven by its computing platforms increased by 21% annually to reach $1.1 billion.

Segmental Insights

The Telematics and Infotainment segment represents the fastest-growing category in the Global Commercial Vehicles Semiconductor Market due to the increasing integration of connectivity features in modern fleets. This trend is accelerated by regulatory frameworks from institutions such as the European Commission, which mandate specific safety technologies and data recording systems to enhance road security. Consequently, semiconductor demand rises as manufacturers install components necessary for real-time vehicle tracking and communication. These technologies enable fleet operators to monitor driver performance and optimize logistics efficiency, establishing telematics as a critical component of the commercial automotive sector.

Regional Insights

Asia Pacific holds a dominant position in the Global Commercial Vehicles Semiconductor Market primarily due to substantial manufacturing output in China, India, and Japan. The region experiences strong demand for logistics and construction fleets which increases the requirement for semiconductors in vehicle telematics and engine management systems. Additionally, supportive policies from government entities like the Ministry of Transport in China regarding emission standards and vehicle safety compel manufacturers to integrate more electronic components. The rapid electrification of public transport fleets further solidifies the regional standing as a major consumer of automotive semiconductors.

Recent Developments

• In December 2025, Infineon Technologies announced a new agreement to supply customized silicon carbide (SiC) power modules to Electreon, a provider of wireless charging solutions. These semiconductor modules are designed to enable efficient dynamic in-road wireless charging for heavy-duty trucks and electric buses. The technology allows commercial vehicles to charge their batteries while in motion, significantly extending their operational range and reducing the need for large, heavy battery packs. This development addresses a critical challenge in the electrification of the commercial transport sector by enhancing energy efficiency and reducing downtime associated with stationary charging.
• In October 2024, Volvo Group and Daimler Truck signed a binding agreement to establish a joint venture dedicated to developing a software-defined vehicle platform for heavy-duty commercial vehicles. This collaboration involves the specification and procurement of centralized, high-performance control units and semiconductors essential for handling the massive data requirements of modern trucks. The partnership aims to create a standardized operating system and hardware architecture that allows for over-the-air updates and advanced digital features. By pooling resources, the two leading truck manufacturers intend to set a new industry standard for commercial vehicle electronics, reducing development costs and accelerating the deployment of digital services.
• In March 2024, Volkswagen Commercial Vehicles intensified its cooperation with Mobileye to develop autonomous driving technology for its light commercial platforms. The company announced it would utilize Mobileye’s advanced self-driving system, including specific computing hardware and software, for the serial production of the ID. Buzz AD. This collaboration focused on delivering Level 4 autonomous capabilities for commercial mobility-as-a-service applications, such as robotaxis and automated delivery vans. By integrating these specialized semiconductor-based systems, the manufacturer aimed to prepare its electric commercial vans for scalable autonomous operations in urban environments starting in 2026.
• In January 2024, Ambarella, Inc. and Kodiak Robotics, Inc. announced a strategic collaboration to integrate advanced semiconductor solutions into autonomous commercial vehicles. Kodiak Robotics selected Ambarella’s CV3-AD685 AI domain control system-on-chip (SoC) as the central processing engine for its next-generation self-driving trucks. This high-performance chip was chosen to handle the complex multi-sensor perception, fusion, and path-planning tasks required for autonomous trucking on highways. The partnership aimed to enhance the safety and efficiency of long-haul freight operations by leveraging the SoC's efficient processing capabilities and low power consumption, enabling a more compact and robust hardware design for commercial fleets.

Key Market Players

• Robert Bosch GmbH
• Infineon Technologies AG
• STMicroelectronics
• NXP Semiconductors
• Toshiba Corporation
• On Semiconductor Corporation
• ROHM Co., Ltd.
• Texas Instruments Incorporated
• Renesas Electronics Corporation
• Denso Corporation

By Component Type	By Application Type	By Region
Processor Analog IC Discrete Power Device Sensor Memory Device	Powertrain Safety Body Electronics Chassis Telematics & Infotainment	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Commercial Vehicles Semiconductor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Commercial Vehicles Semiconductor Market, By Component Type:

• Processor
• Analog IC
• Discrete Power Device
• Sensor
• Memory Device

• Commercial Vehicles Semiconductor Market, By Application Type:

• Powertrain
• Safety
• Body Electronics
• Chassis
• Telematics & Infotainment

• Commercial Vehicles Semiconductor Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE