Europe Automotive Chip Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)
Description
The Europe automotive chip market size reached around USD 9.19 Billion in 2024. The market is projected to grow at a CAGR of 10.60% between 2025 and 2034 to reach nearly USD 25.17 Billion by 2034. The market growth can be attributed to rising EV adoption, semi-autonomous vehicle advancements, and favourable government sustainability initiatives. Moreover, the rising popularity of ADAS in electric vehicles is also contributing to the market growth.
Europe Automotive Chip Market Report Summary
Description
Value
Base Year
USD Billion
2024
Historical Period
USD Billion
2018-2024
Forecast Period
USD Billion
2025-2034
Market Size 2024
USD Billion
9.19
Market Size 2034
USD Billion
25.17
CAGR 2018-2024
Percentage
XX%
CAGR 2025-2034
Percentage
10.60%
CAGR 2025-2034- Market by Country
United Kingdom
11.3%
CAGR 2025-2034 - Market by Country
France
10.9%
CAGR 2025-2034 - Market by Vehicle
Passenger
11.6%
CAGR 2025-2034 - Market by Application
Telematics and Infotainment
11.7%
Market Share by Country 2024
Germany
19.2%
Europe Automotive Chip Market Growth
As per industry reports, the automotive semiconductor industry is expected to witness a substantial growth in the coming years. While modern powertrain designs have 2x the number of semiconductors as in ICE vehicles, autonomous EVs equipped with image-recognition systems, LiDAR sensors, and 5G communication capabilities are expected to have 8x-10x more semiconductors. As European nations bolster their investments in automotive semiconductor production, the Europe automotive chip market revenue is expected to increase significantly.
Based on industry analysis, the automotive sector accounts for nearly 30% of the annual R&D spending of the European Union at around EUR 60 billion. Around 30% of the world’s total number of automotive patents originated in Europe in 2023. The industry accounts for 10% of the region’s exports and is considered a major component of the European economic system. This is expected to lead to a significant demand for semiconductors in the coming years, which is creating a favourable Europe automotive chip market outlook.
The software content of modern vehicles has consistently tripled since 2015. Advanced connectivity systems, including advanced driver assistance systems, are becoming increasingly popular in new vehicles, which has prompted automotive manufacturers to install nearly 150 control units in new cars. As software and hardware rapidly decouple from each other, European automotive chip companies are expected to develop new capabilities for manufacturing advanced semiconductors.
Key Trends and Developments
Increasing competition from Chinese automotive players; integration of artificial intelligence; growing focus on cybersecurity; and rising trend of energy efficiency and miniaturisation are the major factors driving the Europe automotive chip market growth.
January 2025
Infineon Technologies expanded its MOTIX portfolio by introducing the BTM90xx series of full-bridge and H-bridge integrated circuits, specifically tailored for brushed DC motor applications in automotive systems in Europe. These ICs deliver improved protection and diagnostic capabilities, handle high current limits, and are suitable for various automotive functions such as door, mirror, seat, body, and zone control modules.
August 2024
The Taiwan Semiconductor Manufacturing Corporation invested over EUR 10 billion to start the construction of its first-ever European chip fabrication facility in Dresden, Germany. The plant is expected to become operational in 2027 and produce nearly 40,000 silicon wafers per month. These 28nm, 22nm, and 16/12nm nodes are expected to be useful for automotive and industrial applications.
April 2024
Infineon Technologies AG announced that it recorded a 44% year-on-year growth in automotive microcontroller sales in 2023 and emerged as a leader in the global automotive semiconductor space with a market share of 29%. As a Germany-based company, Infineon’s leadership reflects the region’s growing demand for advanced automotive semiconductors, driven by increasing electric vehicle production, autonomous driving developments, and the EU’s focus on sustainable mobility. This is creating a favourable Europe automotive chip market outlook.
February 2023
Wolfspeed, Inc. announced its plans to build the world’s largest and most advanced facility for manufacturing silicone carbide devices in Saarland, Germany. This is aimed at enabling the company to meet the increasing demand for chips from the automotive and energy industry and reach its earnings goal of USD 4 billion by 2027.
Increasing competition from Chinese automotive players
During 2020-22, Chinese companies expanded their automotive market share by 8x in Europe. This has prompted European companies to introduce ambitious electrification plans for the transportation industry, such as the introduction of over 150 new EVs by 2030. This is expected to favourably impact the Europe automotive chip market dynamics.
Integration of artificial intelligence
Automotive chip designs in Europe are increasingly integrating AI to handle the growing demands of advanced vehicle systems. AI-powered chips process data from multiple sources to support features like object detection, predictive analytics, and traffic pattern recognition.
Growing focus on cybersecurity
The rise of connected and autonomous vehicles has made cybersecurity a critical focus in automotive chip design. Chips are now being built with advanced encryption technologies, secure boot mechanisms, and intrusion detection systems to safeguard vehicle data and communication. European regulations, like the UNECE WP.29 cybersecurity guidelines, are also driving innovation in secure chip designs, thereby leading to the market growth.
Rising trend of energy efficiency and miniaturisation
The demand for compact and energy-efficient automotive chips is rising as vehicle designs evolve to include more electronics without increasing weight or power consumption. Miniaturised chips free up excessive space in hybrid and electric vehicles for batteries and other critical components. Simultaneously, energy-efficient chips help extend battery life and reduce power consumption, aligning with Europe’s sustainability goals.
Europe Automotive Chip Market Trends
In 2022, Mercedes-Benz became the first company to certify and launch a Level 3 autonomy vehicle, which enables consumers to drive without wheels. This indicates that technological advancements in vehicle operation are expected to witness sustained demand in the coming years, with European consumers shifting towards cars equipped with advanced driver assistance systems.
Based on industry analysis, market players are expected to invest nearly EUR 190 billion into the development of 37 new chip manufacturing plants over the forecast period, with the European Chips Act subsidising a sum of EUR 43 billion. Moreover, the implementation of dual-sourcing strategies and expansion of production capabilities are expected to favour the Europe automotive chip market outlook in the coming years.
Europe Automotive Chip Industry Segmentation
The EMR’s report titled “Europe Automotive Chip Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type
Based on vehicle, the market is segmented into passenger and commercial. Over the forecast period of 2025-2034, passenger vehicles are expected to grow at a CAGR of 11.6% due to the growing adoption of advanced driver-assistance systems such as automatic emergency braking, adaptive cruise control, and lane departure warning, among others. The rising demand for passenger vehicles with in-car connectivity, cloud-based features, and entertainment systems, coupled with the growing emphasis on safety and efficiency, is creating lucrative Europe automotive chip market opportunities.
Meanwhile, commercial vehicles are estimated to witness a healthy growth in the coming years amid the growing adoption of GPS tracking, telematics, and vehicle health monitoring systems in sectors such as transportation and logistics. The rising focus on fuel efficiency, the increasing demand for electric commercial vehicles, and the growing demand for autonomous driving technologies are further aiding the segment’s growth.
CAGR 2025-2034 - Market by
Vehicle
Passenger
11.6%
Commercial
XX%
Leading Companies in the Europe Automotive Chip Market
The Europe automotive chip market expansion is being driven by increasing cross-industry collaboration among automotive players. To cut costs and improve design, car makers are focusing on standardising middleware and sensor communication protocols to simplify the installation and integration of new sensors. This is propelling the demand for advanced semiconductors to meet the challenging demands of in-vehicle experience, thereby leading to the market growth.
Rohm Co. Ltd.
Rohm Co. Ltd. was founded in 1958 and is headquartered in Kyoto, Japan. It specialises in producing LSI and discrete chips for various applications, including consumer goods and automotive.
Intel Corp.
Intel Corp. was founded in July 1968 and is headquartered in California, United States. It is engaged in manufacturing chipsets, microprocessors, and GPUs to ensure seamless connectivity between businesses and consumers alike.
Qualcomm Technologies, Inc.
Qualcomm Technologies, Inc. was founded in 1985 and is headquartered in California, United States. It develops and supplies semiconductor components and system-on-chip products that power a wide range of devices, including smartphones, tablets, automotive systems, and connected IoT products.
STMicroelectronics NV
STMicroelectronics NV was founded in was founded in 1987 and is headquartered in Geneva, Switzerland. It is a global semiconductor company that designs and manufactures a broad portfolio of electronic components. Its products include microcontrollers, sensors, power devices, and integrated circuits used in a wide range of applications such as automotive systems, industrial equipment, consumer electronics, and IoT devices.
Other players included in the Europe automotive chip market report are Renesas Electronics Corporation, Infineon Technologies AG, Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors NV, and Micron Technology, Inc., among others.
Europe Automotive Chip Market Report Summary
Description
Value
Base Year
USD Billion
2024
Historical Period
USD Billion
2018-2024
Forecast Period
USD Billion
2025-2034
Market Size 2024
USD Billion
9.19
Market Size 2034
USD Billion
25.17
CAGR 2018-2024
Percentage
XX%
CAGR 2025-2034
Percentage
10.60%
CAGR 2025-2034- Market by Country
United Kingdom
11.3%
CAGR 2025-2034 - Market by Country
France
10.9%
CAGR 2025-2034 - Market by Vehicle
Passenger
11.6%
CAGR 2025-2034 - Market by Application
Telematics and Infotainment
11.7%
Market Share by Country 2024
Germany
19.2%
Europe Automotive Chip Market Growth
As per industry reports, the automotive semiconductor industry is expected to witness a substantial growth in the coming years. While modern powertrain designs have 2x the number of semiconductors as in ICE vehicles, autonomous EVs equipped with image-recognition systems, LiDAR sensors, and 5G communication capabilities are expected to have 8x-10x more semiconductors. As European nations bolster their investments in automotive semiconductor production, the Europe automotive chip market revenue is expected to increase significantly.
Based on industry analysis, the automotive sector accounts for nearly 30% of the annual R&D spending of the European Union at around EUR 60 billion. Around 30% of the world’s total number of automotive patents originated in Europe in 2023. The industry accounts for 10% of the region’s exports and is considered a major component of the European economic system. This is expected to lead to a significant demand for semiconductors in the coming years, which is creating a favourable Europe automotive chip market outlook.
The software content of modern vehicles has consistently tripled since 2015. Advanced connectivity systems, including advanced driver assistance systems, are becoming increasingly popular in new vehicles, which has prompted automotive manufacturers to install nearly 150 control units in new cars. As software and hardware rapidly decouple from each other, European automotive chip companies are expected to develop new capabilities for manufacturing advanced semiconductors.
Key Trends and Developments
Increasing competition from Chinese automotive players; integration of artificial intelligence; growing focus on cybersecurity; and rising trend of energy efficiency and miniaturisation are the major factors driving the Europe automotive chip market growth.
January 2025
Infineon Technologies expanded its MOTIX portfolio by introducing the BTM90xx series of full-bridge and H-bridge integrated circuits, specifically tailored for brushed DC motor applications in automotive systems in Europe. These ICs deliver improved protection and diagnostic capabilities, handle high current limits, and are suitable for various automotive functions such as door, mirror, seat, body, and zone control modules.
August 2024
The Taiwan Semiconductor Manufacturing Corporation invested over EUR 10 billion to start the construction of its first-ever European chip fabrication facility in Dresden, Germany. The plant is expected to become operational in 2027 and produce nearly 40,000 silicon wafers per month. These 28nm, 22nm, and 16/12nm nodes are expected to be useful for automotive and industrial applications.
April 2024
Infineon Technologies AG announced that it recorded a 44% year-on-year growth in automotive microcontroller sales in 2023 and emerged as a leader in the global automotive semiconductor space with a market share of 29%. As a Germany-based company, Infineon’s leadership reflects the region’s growing demand for advanced automotive semiconductors, driven by increasing electric vehicle production, autonomous driving developments, and the EU’s focus on sustainable mobility. This is creating a favourable Europe automotive chip market outlook.
February 2023
Wolfspeed, Inc. announced its plans to build the world’s largest and most advanced facility for manufacturing silicone carbide devices in Saarland, Germany. This is aimed at enabling the company to meet the increasing demand for chips from the automotive and energy industry and reach its earnings goal of USD 4 billion by 2027.
Increasing competition from Chinese automotive players
During 2020-22, Chinese companies expanded their automotive market share by 8x in Europe. This has prompted European companies to introduce ambitious electrification plans for the transportation industry, such as the introduction of over 150 new EVs by 2030. This is expected to favourably impact the Europe automotive chip market dynamics.
Integration of artificial intelligence
Automotive chip designs in Europe are increasingly integrating AI to handle the growing demands of advanced vehicle systems. AI-powered chips process data from multiple sources to support features like object detection, predictive analytics, and traffic pattern recognition.
Growing focus on cybersecurity
The rise of connected and autonomous vehicles has made cybersecurity a critical focus in automotive chip design. Chips are now being built with advanced encryption technologies, secure boot mechanisms, and intrusion detection systems to safeguard vehicle data and communication. European regulations, like the UNECE WP.29 cybersecurity guidelines, are also driving innovation in secure chip designs, thereby leading to the market growth.
Rising trend of energy efficiency and miniaturisation
The demand for compact and energy-efficient automotive chips is rising as vehicle designs evolve to include more electronics without increasing weight or power consumption. Miniaturised chips free up excessive space in hybrid and electric vehicles for batteries and other critical components. Simultaneously, energy-efficient chips help extend battery life and reduce power consumption, aligning with Europe’s sustainability goals.
Europe Automotive Chip Market Trends
In 2022, Mercedes-Benz became the first company to certify and launch a Level 3 autonomy vehicle, which enables consumers to drive without wheels. This indicates that technological advancements in vehicle operation are expected to witness sustained demand in the coming years, with European consumers shifting towards cars equipped with advanced driver assistance systems.
Based on industry analysis, market players are expected to invest nearly EUR 190 billion into the development of 37 new chip manufacturing plants over the forecast period, with the European Chips Act subsidising a sum of EUR 43 billion. Moreover, the implementation of dual-sourcing strategies and expansion of production capabilities are expected to favour the Europe automotive chip market outlook in the coming years.
Europe Automotive Chip Industry Segmentation
The EMR’s report titled “Europe Automotive Chip Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type
- Analog ICs
- Microcontrollers and Microprocessors
- Logic ICs
- Commercial
- Passenger
- Chassis
- Powertrain
- Safety
- Telematics and Infotainment
- Body Electronics
- United Kingdom
- Germany
- France
- Italy
- Others
Based on vehicle, the market is segmented into passenger and commercial. Over the forecast period of 2025-2034, passenger vehicles are expected to grow at a CAGR of 11.6% due to the growing adoption of advanced driver-assistance systems such as automatic emergency braking, adaptive cruise control, and lane departure warning, among others. The rising demand for passenger vehicles with in-car connectivity, cloud-based features, and entertainment systems, coupled with the growing emphasis on safety and efficiency, is creating lucrative Europe automotive chip market opportunities.
Meanwhile, commercial vehicles are estimated to witness a healthy growth in the coming years amid the growing adoption of GPS tracking, telematics, and vehicle health monitoring systems in sectors such as transportation and logistics. The rising focus on fuel efficiency, the increasing demand for electric commercial vehicles, and the growing demand for autonomous driving technologies are further aiding the segment’s growth.
CAGR 2025-2034 - Market by
Vehicle
Passenger
11.6%
Commercial
XX%
Leading Companies in the Europe Automotive Chip Market
The Europe automotive chip market expansion is being driven by increasing cross-industry collaboration among automotive players. To cut costs and improve design, car makers are focusing on standardising middleware and sensor communication protocols to simplify the installation and integration of new sensors. This is propelling the demand for advanced semiconductors to meet the challenging demands of in-vehicle experience, thereby leading to the market growth.
Rohm Co. Ltd.
Rohm Co. Ltd. was founded in 1958 and is headquartered in Kyoto, Japan. It specialises in producing LSI and discrete chips for various applications, including consumer goods and automotive.
Intel Corp.
Intel Corp. was founded in July 1968 and is headquartered in California, United States. It is engaged in manufacturing chipsets, microprocessors, and GPUs to ensure seamless connectivity between businesses and consumers alike.
Qualcomm Technologies, Inc.
Qualcomm Technologies, Inc. was founded in 1985 and is headquartered in California, United States. It develops and supplies semiconductor components and system-on-chip products that power a wide range of devices, including smartphones, tablets, automotive systems, and connected IoT products.
STMicroelectronics NV
STMicroelectronics NV was founded in was founded in 1987 and is headquartered in Geneva, Switzerland. It is a global semiconductor company that designs and manufactures a broad portfolio of electronic components. Its products include microcontrollers, sensors, power devices, and integrated circuits used in a wide range of applications such as automotive systems, industrial equipment, consumer electronics, and IoT devices.
Other players included in the Europe automotive chip market report are Renesas Electronics Corporation, Infineon Technologies AG, Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors NV, and Micron Technology, Inc., among others.
Table of Contents
173 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Countries
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Global Automotive Chip Market Overview
- 5.1 Key Industry Highlights
- 5.2 Global Automotive Chip Historical Market (2018-2024)
- 5.3 Global Automotive Chip Market Forecast (2025-2034)
- 5.4 Global Automotive Chip Market Share by Region
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East and Africa
- 6 Europe Automotive Chip Market Overview
- 6.1 Key Industry Highlights
- 6.2 Europe Automotive Chip Historical Market (2018-2024)
- 6.3 Europe Automotive Chip Market Forecast (2025-2034)
- 7 Europe Automotive Chip Market by Type
- 7.1 Analog ICs
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.2 Microcontrollers and Microprocessors
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.3 Logic ICs
- 7.3.1 Historical Trend (2018-2024)
- 7.3.2 Forecast Trend (2025-2034)
- 8 Europe Automotive Chip Market by Vehicle
- 8.1 Commercial
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Passenger
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 9 Europe Automotive Chip Market by Application
- 9.1 Chassis
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Powertrain
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 9.3 Safety
- 9.3.1 Historical Trend (2018-2024)
- 9.3.2 Forecast Trend (2025-2034)
- 9.4 Telematics and Infotainment
- 9.4.1 Historical Trend (2018-2024)
- 9.4.2 Forecast Trend (2025-2034)
- 9.5 Body Electronics
- 9.5.1 Historical Trend (2018-2024)
- 9.5.2 Forecast Trend (2025-2034)
- 10 Europe Automotive Chip Market by Country
- 10.1 United Kingdom
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Germany
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 France
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 10.4 Italy
- 10.4.1 Historical Trend (2018-2024)
- 10.4.2 Forecast Trend (2025-2034)
- 10.5 Others
- 11 Market Dynamics
- 11.1 SWOT Analysis
- 11.1.1 Strengths
- 11.1.2 Weaknesses
- 11.1.3 Opportunities
- 11.1.4 Threats
- 11.2 Porter’s Five Forces Analysis
- 11.2.1 Supplier’s Power
- 11.2.2 Buyer’s Power
- 11.2.3 Threat of New Entrants
- 11.2.4 Degree of Rivalry
- 11.2.5 Threat of Substitutes
- 11.3 Key Indicators of Demand
- 11.4 Key Indicators of Price
- 12 Competitive Landscape
- 12.1 Supplier Selection
- 12.2 Key Global Players
- 12.3 Key Regional Players
- 12.4 Key Player Strategies
- 12.5 Company Profile
- 12.5.1 Qualcomm Technologies, Inc.
- 12.5.1.1 Company Overview
- 12.5.1.2 Product Portfolio
- 12.5.1.3 Demographic Reach and Achievements
- 12.5.1.4 Certifications
- 12.5.2 Renesas Electronics Corporation
- 12.5.2.1 Company Overview
- 12.5.2.2 Product Portfolio
- 12.5.2.3 Demographic Reach and Achievements
- 12.5.2.4 Certifications
- 12.5.3 Infineon Technologies AG
- 12.5.3.1 Company Overview
- 12.5.3.2 Product Portfolio
- 12.5.3.3 Demographic Reach and Achievements
- 12.5.3.4 Certifications
- 12.5.4 STMicroelectronics NV
- 12.5.4.1 Company Overview
- 12.5.4.2 Product Portfolio
- 12.5.4.3 Demographic Reach and Achievements
- 12.5.4.4 Certifications
- 12.5.5 Texas Instruments Incorporated
- 12.5.5.1 Company Overview
- 12.5.5.2 Product Portfolio
- 12.5.5.3 Demographic Reach and Achievements
- 12.5.5.4 Certifications
- 12.5.6 Broadcom Inc.
- 12.5.6.1 Company Overview
- 12.5.6.2 Product Portfolio
- 12.5.6.3 Demographic Reach and Achievements
- 12.5.6.4 Certifications
- 12.5.7 NXP Semiconductors NV
- 12.5.7.1 Company Overview
- 12.5.7.2 Product Portfolio
- 12.5.7.3 Demographic Reach and Achievements
- 12.5.7.4 Certifications
- 12.5.8 Micron Technology, Inc.
- 12.5.8.1 Company Overview
- 12.5.8.2 Product Portfolio
- 12.5.8.3 Demographic Reach and Achievements
- 12.5.8.4 Certifications
- 12.5.9 Intel Corp.
- 12.5.9.1 Company Overview
- 12.5.9.2 Product Portfolio
- 12.5.9.3 Demographic Reach and Achievements
- 12.5.9.4 Certifications
- 12.5.10 Rohm Co. Ltd.
- 12.5.10.1 Company Overview
- 12.5.10.2 Product Portfolio
- 12.5.10.3 Demographic Reach and Achievements
- 12.5.10.4 Certifications
- 12.5.11 Others
Pricing
Currency Rates
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