Global Automotive Chip Market
Description
Global Automotive Chip Market Size was valued at USD 53,793.7 million in 2024 and is poised to grow from USD 59,672.8 million in 2025 to USD 127,959.0 million by 2032, growing at a CAGR of 11.5% during the forecast period (2025-2032).
The Automotive Chip market is witnessing significant growth, fueled by a surge in demand for advanced electronics across vehicle electrification, ADAS, and software-defined architectures. Renowned for enabling control, processing, sensing, power management, and communication functions, automotive chips are increasingly utilized in powertrain, safety systems, infotainment, and body electronics. This growth is largely driven by stringent safety regulations, EV adoption, and regulatory mandates for features like automatic emergency braking. The automotive sector, particularly in regions like Asia Pacific, is rapidly adopting high-performance semiconductors stemming from global electrification trends. Moreover, advancements in SiC/GaN power devices and zonal controllers have made vehicle architectures more efficient, particularly in reducing losses in EV powertrains and enhancing ADAS performance. Overall, the market is propelled by the urgent need to support intelligent mobility and regulatory compliance.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Chip market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the Market Size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Automotive Chip Market Segments Analysis
Global Automotive Chip Market is segmented by Type, Vehicle Type, Application and region. Based on Type, the market is segmented into Analog ICs, Microcontrollers & Microprocessors, Logic ICs. Based on Vehicle Type, the market is segmented into Passenger Vehicles, Commercial Vehicles. Based on Application, the market is segmented into Chassis, Powertrain, Safety, Telematics & Infotainment, Body Electronics, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.
Driver of the Global Automotive Chip Market
The Global Automotive Chip market is witnessing robust growth driven by stringent vehicle safety and emission regulations. This surge in demand is attributed to mandates like the U.S. NHTSA’s 2024 rule requiring Automatic Emergency Braking in all light vehicles by 2030, compelling integration of radar/LiDAR, ECUs, and safety processors. As global EV adoption accelerates supported by subsidies and phase-outs, pressure for high-voltage power electronics, battery management, and domain controllers has amplified, leading to a heightened need for efficient semiconductor systems. Additionally, rising ADAS mandates have compelled governments to impose stringent functional safety standards like ISO 26262, further boosting the need for automotive chips across powertrain, chassis, and safety sectors.
Restraints in the Global Automotive Chip Market
The Global Automotive Chip market faces significant restraints primarily due to technology obsolescence versus long vehicle lifecycles. Automotive platforms require 12–15 years of support, while semiconductors often reach end-of-life in 7–10 years, forcing redesigns or last-time buys. To gain traction, chipmakers must offer compelling long-term availability that justifies costs compared to these lifecycle mismatches. Semiconductors have long been favored due to rapid innovation cycles, making them difficult to sustain in extended programs. Their established supply chains and evolving performance create formidable barriers for consistent availability in automotive applications.
Market Trends of the Global Automotive Chip Market
The Global Automotive Chip market is experiencing a notable upward trend driven by the electrification surge and BEV/HEV adoption. Automotive chips' high-performance capabilities enable efficient power management and sensor processing, making them indispensable in EV traction inverters and ADAS systems. Furthermore, their application in software-defined vehicles and zonal architectures is gaining traction, aligning with the global shift towards centralized computing. This dual functionality not only enhances vehicle efficiency by minimizing losses but also optimizes ADAS yields, ultimately reducing system costs and fostering market growth.
The Automotive Chip market is witnessing significant growth, fueled by a surge in demand for advanced electronics across vehicle electrification, ADAS, and software-defined architectures. Renowned for enabling control, processing, sensing, power management, and communication functions, automotive chips are increasingly utilized in powertrain, safety systems, infotainment, and body electronics. This growth is largely driven by stringent safety regulations, EV adoption, and regulatory mandates for features like automatic emergency braking. The automotive sector, particularly in regions like Asia Pacific, is rapidly adopting high-performance semiconductors stemming from global electrification trends. Moreover, advancements in SiC/GaN power devices and zonal controllers have made vehicle architectures more efficient, particularly in reducing losses in EV powertrains and enhancing ADAS performance. Overall, the market is propelled by the urgent need to support intelligent mobility and regulatory compliance.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Chip market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the Market Size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Automotive Chip Market Segments Analysis
Global Automotive Chip Market is segmented by Type, Vehicle Type, Application and region. Based on Type, the market is segmented into Analog ICs, Microcontrollers & Microprocessors, Logic ICs. Based on Vehicle Type, the market is segmented into Passenger Vehicles, Commercial Vehicles. Based on Application, the market is segmented into Chassis, Powertrain, Safety, Telematics & Infotainment, Body Electronics, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.
Driver of the Global Automotive Chip Market
The Global Automotive Chip market is witnessing robust growth driven by stringent vehicle safety and emission regulations. This surge in demand is attributed to mandates like the U.S. NHTSA’s 2024 rule requiring Automatic Emergency Braking in all light vehicles by 2030, compelling integration of radar/LiDAR, ECUs, and safety processors. As global EV adoption accelerates supported by subsidies and phase-outs, pressure for high-voltage power electronics, battery management, and domain controllers has amplified, leading to a heightened need for efficient semiconductor systems. Additionally, rising ADAS mandates have compelled governments to impose stringent functional safety standards like ISO 26262, further boosting the need for automotive chips across powertrain, chassis, and safety sectors.
Restraints in the Global Automotive Chip Market
The Global Automotive Chip market faces significant restraints primarily due to technology obsolescence versus long vehicle lifecycles. Automotive platforms require 12–15 years of support, while semiconductors often reach end-of-life in 7–10 years, forcing redesigns or last-time buys. To gain traction, chipmakers must offer compelling long-term availability that justifies costs compared to these lifecycle mismatches. Semiconductors have long been favored due to rapid innovation cycles, making them difficult to sustain in extended programs. Their established supply chains and evolving performance create formidable barriers for consistent availability in automotive applications.
Market Trends of the Global Automotive Chip Market
The Global Automotive Chip market is experiencing a notable upward trend driven by the electrification surge and BEV/HEV adoption. Automotive chips' high-performance capabilities enable efficient power management and sensor processing, making them indispensable in EV traction inverters and ADAS systems. Furthermore, their application in software-defined vehicles and zonal architectures is gaining traction, aligning with the global shift towards centralized computing. This dual functionality not only enhances vehicle efficiency by minimizing losses but also optimizes ADAS yields, ultimately reducing system costs and fostering market growth.
Table of Contents
287 Pages
- 1. Introduction
- 1.1. Objectives of the Study
- 1.2. Market Definition Scope
- 2. Research Methodology
- 2.1. Research Process
- 2.2. Secondary Primary Data Methods
- 2.3. Market Size Estimation Methods
- 2.4. Market Assumptions Limitations
- 3. Executive Summary
- 3.1. Global Market Outlook
- 3.2. Key Market Highlights
- 3.3. Segmental Overview
- 4. Market Dynamics Outlook
- 4.1. Macro-Economic Indicators
- 4.2. Drivers Opportunities
- 4.3. Restraints Challenges
- 4.4. Supply Side Trends
- 4.5. Demand Side Trends
- 4.6. Porters Analysis Impact
- 4.6.1. Competitive Rivalry
- 4.6.2. Threat of substitutes
- 4.6.3. Bargaining power of buyers
- 4.6.4. Threat of new entrants
- 4.6.5. Bargaining power of suppliers
- 5. Key Market Insights
- 5.1. Key Success Factors
- 5.2. Market Impacting Factors
- 5.3. Top Investment Pockets
- 5.4. Market Attractiveness Index, 2024
- 5.5. Market Ecosystem
- 5.6. PESTEL Analysis
- 5.7. Pricing Analysis
- 5.8. Regulatory Landscape
- 5.9. Value Chain Analysis
- 6. Global Automotive Chip Size by Type 2019-2032
- 6.1. Analog ICs
- 6.2. Microcontrollers Microprocessors
- 6.3. Logic ICs
- 7. Global Automotive Chip Size by Vehicle Type 2019-2032
- 7.1. Passenger Vehicles
- 7.2. Commercial Vehicles
- 8. Global Automotive Chip Size by Application 2019-2032
- 8.1. Chassis
- 8.2. Powertrain
- 8.3. Safety
- 8.4. Telematics Infotainment
- 8.5. Body Electronics
- 8.6. Others
- 9. Global Automotive Chip Size by Region 2019-2032
- 9.1. North America By Type, By Vehicle Type, By Application
- 9.1.1. US
- 9.1.2. Canada
- 9.2. Europe By Type, By Vehicle Type, By Application
- 9.2.1. UK
- 9.2.2. Germany
- 9.2.3. Spain
- 9.2.4. France
- 9.2.5. Italy
- 9.2.6. Rest of Europe
- 9.3. Asia-Pacific By Type, By Vehicle Type, By Application
- 9.3.1. China
- 9.3.2. India
- 9.3.3. Japan
- 9.3.4. South Korea
- 9.3.5. Rest of Asia Pacific
- 9.4. Latin America By Type, By Vehicle Type, By Application
- 9.4.1. Brazil
- 9.4.2. Mexico
- 9.4.3. Rest of Latin America
- 9.5. Middle East Africa By Type, By Vehicle Type, By Application
- 9.5.1. GCC Countries
- 9.5.2. South Africa
- 9.5.3. Rest of Middle East Africa
- 10. Competitive Landscape
- 10.1. Competitive Dashboard
- 10.2. Market Positioning of Key Players, 2024
- 10.3. Strategies Adopted by Key Market Players
- 10.4. Recent Developments in the Market
- 10.5. Company Market Share Analysis, 2024
- 11. Key Company Profiles
- 11.1. Infineon Technologies AG
- 11.1.1. Company Overview
- 11.1.2. Product Portfolio Overview
- 11.1.3. Financial Overview
- 11.1.4. Key Developments
- 11.2. NXP Semiconductors N.V.
- 11.3. STMicroelectronics N.V.
- 11.4. Texas Instruments Incorporated
- 11.5. Renesas Electronics Corporation
- 11.6. ON Semiconductor Corporation
- 11.7. Qualcomm Incorporated
- 11.8. Analog Devices, Inc. ADI
- 11.9. Microchip Technology Incorporated
- 11.10. Robert Bosch GmbH
- 11.11. Micron Technology, Inc.
- 11.12. NVIDIA CORPORATION
- 11.13. Intel Corporation
- 11.14. Toshiba Electronic Devices Storage Corporation
- 11.15. ROHM Co., Ltd.
- 11.16. Continental AG
- 11.17. SK hynix Inc.
- 11.18. Samsung Electronics Co., Ltd.
- 11.19. Melexis N.V. Belgium
- 11.20. Vishay Intertechnology, Inc.
- 12. Conclusion Recommendation
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