Automotive Semiconductor Market Size and Share
Automotive Semiconductor Market Analysis by Mordor Intelligence
The automotive semiconductor market size reached USD 100.48 billion in 2025 and is forecast to climb to USD 142.87 billion by 2030, reflecting a 7.29% CAGR over the period. Unit shipments are set to advance from 108.12 billion in 2025 to 160.96 billion by 2030, at an 8.28% CAGR over the period, implying density gains per vehicle even as pricing competition intensifies. Semiconductor value in an electric vehicle already averages USD 1,500, triple that of an internal-combustion model, with the largest spend in power management and drivetrain electronics. Asia–Pacific remains the economic engine, supported by China’s electric-vehicle scale-up, Japan’s foundry revitalization, and India’s rapid passenger-car expansion. Silicon carbide power devices, zonal architectures, and software-defined vehicles collectively accelerate content growth, while legacy-node shortages, wide-bandgap substrate costs, and high-end-vehicle pricing dampen momentum.
Key Report Takeaways
- By propulsion type, internal combustion engines held 53.4% automotive semiconductor market share in 2024, while battery electric vehicles are projected to post the fastest 18.5% CAGR through 2030.
- By application, power electronics led with 34.2% of the automotive semiconductor market size in 2024; safety and ADAS are poised for a 16.2% CAGR to 2030.
- By component, microcontrollers and domain SoCs commanded 26.1% revenue in 2024; silicon carbide power devices are forecast to expand at a 22.1% CAGR.
- By vehicle type, passenger cars accounted for 74.4% of the automotive semiconductor market size in 2024, while passenger battery-EVs led growth at 14.9% CAGR.
- By region, Asia–Pacific captured 55.3% revenue in 2024; the region is projected to grow at 10.7% CAGR through 2030.
Global Automotive Semiconductor Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Increasing vehicle production in emerging economies | +2.2% | Asia-Pacific, with a focus on China and India | Medium term (2-4 years) |
Rising demand for advanced safety and comfort systems | +1.8% | Global, with early adoption in North America and Europe | Short term (≤ 2 years) |
Electrification boosts semiconductor content per vehicle | +1.6% | Global, with a concentration in Europe and China | Medium term (2-4 years) |
Zonal E/E architectures and software-defined vehicles spur high-end processors | +1.3% | North America, Europe, and advanced Asia-Pacific markets | Medium term (2-4 years) |
Government subsidies for auto-grade foundry capacity | +1.1% | North America, Europe, Japan | Long term (≥ 4 years) |
SiC and GaN power devices adoption in EV powertrains | +0.9% | Global, with leadership from Europe and China | Medium term (2-4 years) |
Source: Mordor Intelligence
Increasing Vehicle Production in Emerging Economies
Vehicle output growth in China, India, and Mexico lifted semiconductor demand as automakers expanded domestic capacity, formed joint ventures, and localised supply chains. China alone generated more than 40% of global EV chip requirements, encouraging foreign suppliers to add local backend and test operations. India’s policy framework, including production-linked incentives and the PM E-DRIVE programme, stimulated fresh investment and elevated foreign direct inflows to USD 36.21 billion between 2000 and 2024.[1]IBEF, “India’s Automobile Industry: Growth and Trends,” ibef.org Mexico’s ascent as the projected fifth-largest vehicle producer by 2025, supported by 170-plus electrification component suppliers, adds a near-shoring option for North American OEMs. Collectively, these trends enlarge regional chip demand, shorten logistics cycles, and diversify sourcing risks.
Rising Demand for Advanced Safety and Comfort Systems
Global uptake of driver-assistance and autonomous functions continues to lift semiconductor content. Radar, LiDAR, and camera fusion platforms require high-bandwidth domain controllers and memory. The ADAS market is projected to approach USD 91.83 billion in 2025, with semiconductor value in this domain representing one-half of incremental chip revenue through 2030. Vehicle-to-everything connectivity, estimated to reach USD 7.9 billion, compounds the need for dedicated RF transceivers and secure processors. Average chip counts per car are projected to rise from 834 units in 2023 to over 1,100 units by 2029. Regulations mandating automatic emergency braking and lane-keeping assistance in Europe and North America further accelerate near-term volume.
Electrification Boosting Semiconductor Content per Vehicle
Battery electric vehicles integrate up to 3,500 semiconductors, driving gross bill-of-materials above USD 1,500 per car. Silicon carbide and gallium nitride devices now make up 30-40% of traction inverter value thanks to superior switching efficiency and high-temperature tolerance. Production of xEV powertrains is expected to increase from 33.1 million units in 2024 to 53.8 million by 2029, sustaining a double-digit CAGR that outpaces overall vehicle growth. As automakers adopt 800 V architectures, demand strengthens for high-voltage MOSFETs, compact DC-DC converters, and high-resolution current sensors, reinforcing upstream wafer expansion plans.
Zonal E/E Architectures and Software-Defined Vehicles Spur High-End Processors
Consolidating dozens of electronic control units into a handful of zonal gateways reduces cabling weight and simplifies system validation. Tesla pioneered the concept, cutting wiring length by nearly half in the Model 3, while legacy manufacturers accelerate similar redesigns. Up to 45% of global production is expected to adopt software-defined platforms by 2027. NXP’s CoreRide and S32K5 microcontroller families, launched in 2024 and 2025, integrate functional safety, over-the-air updates, and embedded MRAM, shortening software release cycles. Adoption of 10BASE-T1S Ethernet links enables deterministic communication among sensors, actuators, and high-performance application processors, driving incremental demand for PHY and switch chips.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
High cost of advanced-feature vehicles | -1.8% | Global, with higher impact in price-sensitive markets | Medium term (2-4 years) |
Persistent supply-chain constraints and chip shortages | -1.5% | Global, with varying impact by region | Short term (≤ 2 years) |
Scarcity and cost of wide-bandgap substrates (SiC/GaN) | -1.1% | Global, affecting the high-performance EV segment | Medium term (2-4 years) |
Lengthy automotive qualification cycles slow time-to-market | -0.7% | Global | Long term (≥ 4 years) |
Source: Mordor Intelligence
Persistent Supply-Chain Constraints and Chip Shortages
Legacy-node capacity at ≥65 nm remains tight as fabs prioritise advanced logic. Only 26% of automakers reported adequate chip supply in early 2025, underscoring exposure to mature-node bottlenecks. Geopolitical controls on gallium and antimony amplify risk for power-device wafers. European OEMs were further pressured by reduced United States export volumes following tariff actions, translating into lower semiconductor call-offs and factory downtime. Although fresh investments announced under the CHIPS Act and comparable European programmes will ease constraints post-2027, near-term volatility persists.
High Cost of Advanced-Feature Vehicles
Wide-bandgap devices, high-speed memories, and multi-sensor fusion chips inflate the bill-of-materials, lifting sticker prices for mid-segment vehicles. National planners anticipate semiconductor outlays per car to nearly double by 2030, raising affordability concerns in developing markets. Premium electric pickups faced inventory build-ups in 2024, prompting manufacturers to pause production until demand aligned with price points. Automakers pursue mitigation via higher integration, chiplet partitioning, and joint design with semiconductor partners, yet economies of scale may take several model cycles to materialize.
Segment Analysis
By Vehicle Type: Passenger EVs Drive Market Transformation
Passenger vehicles represented 74.4% of the automotive semiconductor market in 2024, reflecting mass-volume output and rich infotainment, comfort, and safety content. Light commercial vans used for parcel delivery adopted electrification at a measured pace as fleet operators weighed total cost of ownership advantages. Heavy trucks incorporated advanced telematics, stability, and autonomous convoy systems, but volumes remained lower. The automotive semiconductor market size for passenger cars is expected to expand in line with the 14.9% CAGR of battery-electric models. That trajectory stems from falling battery costs, stricter emissions rules, and a wave of new platform launches aimed at urban mobility and ride-hailing.
Shipments of battery-electric passenger vehicles are forecast to reach 38.35 million by 2030, underpinning rapid growth in traction inverters, on-board chargers, and battery-management ICs. Average semiconductor content per BEV is triple that of an internal combustion counterpart, creating sustained tailwinds. Across all vehicle classes, the number of chips per unit is projected to climb from 834 in 2023 to more than 1,100 by 2029, further widening revenue potential.[2]Evertiq, “Electrification and Autonomy to Boost Semiconductor,” evertiq.com Commercial fleets demand robust connectivity and prognostics, boosting uptake of secure microcontrollers and cellular V2X modules. Autonomous trucking pilots accelerate the need for high-accuracy lidar and redundant sensor chains, nurturing a specialised niche for ruggedised processors.
Note: Segment shares of all individual segments available upon report purchase
By Component: SiC Power Devices Revolutionise EV Performance
Microcontrollers and domain system-on-chips held 26.1% of 2024 revenue, anchoring gateway, body control, and power-train functions. Yet, silicon carbide devices are the star performer, expanding at 22.1% CAGR as automakers migrate to 800 V drive chains for faster charging and better efficiency. In 2023, SiC inverters served 28% of battery-electric platforms, and adoption is scaling quickly in premium segments. The automotive semiconductor market size attributed to power devices is forecast to surpass USD 28 billion by 2036, reflecting conversion efficiency gains that translate into tangible driving-range benefits.
Automotive microcontroller revenue is projected to increase at a significant rate by 2034, propelled by electrification and AI acceleration. Sensor demand mirrors the expansion of ADAS suites, while memory footprints grow alongside over-the-air firmware packages. Chiplet-based processor designs promise die-size cuts of up to 40%, helping curb cost without sacrificing performance. Discrete MOSFETs still populate auxiliary loads, including HVAC blowers and seat heaters, ensuring balanced growth across the component stack.
By Application: Safety Systems Outpace Traditional Domains
Power electronics retained a 34.2% segment share in 2024, thanks to the electrification wave. Safety and ADAS will, however, be the fastest-growing application area at 16.2% CAGR to 2030. Regulators now mandate forward-collision warnings and automatic braking on new models in multiple markets, while consumer surveys confirm rising willingness to pay for driver-assistance bundles. Consequently, the automotive semiconductor market size within ADAS is projected to account for over one-half of the incremental chip revenue by the decade's close.
Chassis and body electronics maintain steady demand, led by electronic stability programmes, active suspensions, and smart lighting. Infotainment upgrades require high-resolution displays and 5G modems, enhancing the need for advanced SoCs capable of graphics offload. The migration toward zonal architectures compresses physical ECUs yet increases compute centralisation, raising demand for high-bandwidth Ethernet switches and FPD-Link serializers. Over-the-air update capability shifts lifecycle value toward post-sale services, anchoring the business case for scalable memory and security controllers.

Note: Segment shares of all individual segments available upon report purchase
By Propulsion Type: BEVs Lead Semiconductor Innovation
Internal combustion engines still represented 53.4% revenue in 2024, but battery-electric vehicles are set to outpace all other formats at 18.5% CAGR through 2030. Silicon carbide MOSFETs and gallium nitride HEMTs capture 30-40% of semiconductor BOM in next-generation BEVs, underpinning traction inverters, DC-DC converters, and on-board chargers. Automotive semiconductor market share for BEV-specific devices rises sharply as automakers pivot platforms, reinforcing strategic wafer fab investments.
Hybrid formats—full, plug-in, and mild—bridge the transition, creating complex power-management requirements for proprietary microcontrollers capable of real-time load balancing. Fuel-cell electric vehicles remain niche, but require unique stack controllers and hydrogen safety sensors. Adoption of 800 V architectures in premium BEVs doubles voltage ratings relative to mainstream 400 V systems, intensifying demand for high-voltage gate drivers and isolation components. Suppliers that master wide-bandgap reliability and packaging stand to capture disproportionate value.
Geography Analysis
Asia–Pacific dominated the automotive semiconductor market with 55.3% revenue in 2024 and is projected to expand at 10.7% CAGR to 2030. China accounted for more than 40% of global EV chip demand, yet domestic output of auto-grade power devices remained under 35% in 2021, presenting white-space for international players.[3]International Council on Clean Transportation, “China EV Trends,” theicct.org Japan launched the Leading-Edge Semiconductor Technology Center and facilitated new fabs with TSMC to regain expertise in mature and advanced nodes. India’s microcontroller market is projected to rise at 11.1% CAGR, boosted by incentives for local manufacture.
North America benefits from CHIPS Act funding that underwrites foundry starts in Arizona, Texas, and New York. March 2025 saw a 17.8 million-unit annualised sales rate, the strongest in four years, although tariff uncertainty trimmed production plans later in the year. Electric vehicles reached 9.6% of deliveries, with BEVs at 7.3%, bolstering demand for SiC wafer capacity expansions announced by onsemi and Wolfspeed. Mexico’s emergence as an electrified-component hub supports continent-wide just-in-time supply.
Europe’s share of global semiconductor revenue slipped to 10.6% in 2023, yet the region retains strength in automotive verticals through Infineon, NXP, and STMicroelectronics. The European Chips Act allocates EUR 43 billion to double the output share by 2030, while Wolfspeed and Infineon detail multi-billion-dollar SiC megafabs in Germany. Headwinds include slower passenger-car demand and exposure to China tariffs, but premium OEMs sustain high semiconductor specifications, cushioning unit softness. The automotive semiconductor market size for Germany is forecast to post a modest 5.1% CAGR as product mix skews toward high-value chips.

Competitive Landscape
Five heritage suppliers—Infineon, NXP, STMicroelectronics, Texas Instruments, and Renesas—collectively held the majority of revenue in 2024, evidencing moderate concentration.[4]Telecom Lead, “Automotive Semiconductor Market Share Revealed,” telecomlead.com Infineon moved into first position with a 14% share, reinforcing scale in microcontrollers, power MOSFETs, and safety ICs. NXP strengthened central compute and zonal architectures via the USD 625 million TTTech Auto acquisition and its newly launched S32K5 platform.
Vertical integration gathers pace: BYD Semiconductor produced roughly 70% of the components it consumed, while Chinese OEMs developed proprietary inverter modules to secure supply and reduce cost risk. Wolfspeed, onsemi, and ROHM accelerated SiC revenue by signing long-term capacity agreements with automotive clients. Meanwhile, chiplet-ready CPUs and AI co-processors from emerging start-ups attracted investments as automakers sought bespoke solutions to distinguish software-defined features.
Strategic acquisitions shape positioning in networking and AI. Infineon’s USD 2.5 billion purchase of Marvell’s Automotive Ethernet line added single-pair Gigabit transceivers that will anchor zonal backbones. NXP’s USD 307 million deal for Kinara brought power-efficient neural processing units optimised for in-cabin and edge safety workloads. STMicroelectronics invested in 200 mm SiC substrates in Italy to secure internal raw-wafer supply. Collaboration between OEMs and chip makers grew deeper, evidenced by co-development contracts for compute-heavy advanced driving stacks.
Automotive Semiconductor Industry Leaders
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Infineon Technologies AG
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NXP Semiconductors N.V.
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STMicroelectronics N.V.
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Texas Instruments Inc.
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Renesas Electronics Corp.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- April 2025: Infineon closed the USD 2.5 billion acquisition of Marvell’s Automotive Ethernet business, expected to add up to USD 250 million revenue in 2025.
- March 2025: NXP introduced the 16 nm S32K5 MCU family with embedded MRAM, enabling fast over-the-air updates.
- February 2025: NXP acquired Kinara for USD 307 million, adding low-power NPUs for edge AI workloads.
- January 2025: NXP Semiconductors bought TTTech Auto for USD 625 million to fortify software-defined vehicle solutions.
Global Automotive Semiconductor Market Report Scope
The market for automotive semiconductors was evaluated by analyzing the market sizes of different components used in the automotive industry, such as sensors, processors, memory devices, discrete power devices, and integrated circuits. The report’s scope comprises analyzing various vehicle types worldwide, including light commercial vehicles, heavy commercial vehicles, and passenger vehicles.
The automotive semiconductor is segmented by vehicle type (passenger vehicle, light commercial vehicle, and heavy commercial vehicle), component (processors, sensors, memory devices, integrated circuits, discrete power devices, and RF devices), application (chassis, power electronics, safety, body electronics, comfort/entertainment unit, and other applications), and geography (North America, Europe, Asia-Pacific, Latina America, and Middle East & Africa). The report offers the market size in value terms in USD for all the abovementioned segments.
By Vehicle Type | Passenger Vehicles | |||
Light Commercial Vehicles | ||||
Heavy Commercial Vehicles | ||||
By Component | Processors / Microcontrollers | |||
Sensors | ||||
Memory Devices | ||||
Integrated Circuits (ASIC/ASSP) | ||||
Discrete Power Devices | ||||
RF Devices | ||||
By Application | Chassis | |||
Power Electronics | ||||
Safety | ||||
Body Electronics | ||||
Infotainment and Telematics | ||||
Other Applications | ||||
By Propulsion Type | Internal Combustion Engine (ICE) | |||
Mild Hybrid Vehicles (MHEV) | ||||
Full Hybrid Vehicles (HEV) | ||||
Plug-in Hybrid Vehicles (PHEV) | ||||
Battery Electric Vehicles (BEV) | ||||
Fuel-Cell Electric Vehicles (FCEV) | ||||
By Geography | North America | United States | ||
Canada | ||||
Mexico | ||||
South America | Brazil | |||
Argentina | ||||
Rest of South America | ||||
Europe | Germany | |||
United Kingdom | ||||
France | ||||
Italy | ||||
Spain | ||||
Rest of Europe | ||||
Asia-Pacific | China | |||
Japan | ||||
South Korea | ||||
India | ||||
Rest of Asia-Pacific | ||||
Middle East and Africa | Middle East | Saudi Arabia | ||
United Arab Emirates | ||||
Turkey | ||||
Rest of Middle East | ||||
Africa | South Africa | |||
Nigeria | ||||
Egypt | ||||
Rest of Africa |
Passenger Vehicles |
Light Commercial Vehicles |
Heavy Commercial Vehicles |
Processors / Microcontrollers |
Sensors |
Memory Devices |
Integrated Circuits (ASIC/ASSP) |
Discrete Power Devices |
RF Devices |
Chassis |
Power Electronics |
Safety |
Body Electronics |
Infotainment and Telematics |
Other Applications |
Internal Combustion Engine (ICE) |
Mild Hybrid Vehicles (MHEV) |
Full Hybrid Vehicles (HEV) |
Plug-in Hybrid Vehicles (PHEV) |
Battery Electric Vehicles (BEV) |
Fuel-Cell Electric Vehicles (FCEV) |
North America | United States | ||
Canada | |||
Mexico | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
South Korea | |||
India | |||
Rest of Asia-Pacific | |||
Middle East and Africa | Middle East | Saudi Arabia | |
United Arab Emirates | |||
Turkey | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Egypt | |||
Rest of Africa |
Key Questions Answered in the Report
What is the forecast size of the automotive semiconductor market by 2030?
The market is projected to reach USD 142.87 billion by 2030, expanding at a 7.29% CAGR.
Which region offers the fastest revenue growth opportunity?
Asia–Pacific is expected to post a 10.7% CAGR through 2030 on the strength of China’s electric-vehicle scale-up and supportive industrial policies.
How much semiconductor content does a battery electric vehicle typically contain?
A battery electric vehicle now averages about USD 1,500 in semiconductor value, roughly triple that of an internal-combustion model.
What application segment is set to grow the quickest?
Safety and advanced driver-assistance systems are projected to record a 16.2% CAGR through 2030 as regulations tighten and autonomous features proliferate.
Which component category shows the highest growth rate?
Silicon carbide power devices are forecast to expand at a 22.1% CAGR as automakers migrate to 800 V architectures for faster charging and higher efficiency.
Page last updated on: June 26, 2025