Circumvent the Tariff challenges with an agile supply chain Consulting
Supply Chain Ecosystem Analysis now part of DBMR Reports
Global Automotive Chips Market
Market Size in USD Billion
CAGR :
%
USD
40.60 Billion
USD
102.69 Billion
2024
2032
Forecast Period
2025 –2032
Market Size(Base Year)
USD
40.60 Billion
Market Size (Forecast Year)
USD
102.69 Billion
CAGR
%
Major Markets Players
Qualcomm Technologies Inc.
Renesas Electronics Corporation
Infineon Technologies AG
STMicroelectronics
Texas Instruments Incorporated
Global Automotive Chips Market Segmentation, By Type (Analog ICs, Microcontrollers and Microprocessors, and Logic ICs), Vehicle (Passenger and Commercial), Application (Chassis, Powertrain, Safety, Telematics and Infotainment, and Body Electronics), Propulsion (ICE, BEVs, and HEVs) - Industry Trends and Forecast to 2032
The global automotive chips market was valued at USD 40.60 billion in 2024 and is expected to reach USD 102.69 billion by 2032
During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 12.30%, primarily driven by rapid growth of electric vehicles (EVs)
Automotive chips are witnessing growing adoption globally, driven by the increasing demand for vehicle electrification, autonomous driving technologies, and advanced safety systems. These chips are essential for enabling functions such as ADAS, battery management, and in-vehicle infotainment, supporting the development of smarter, safer, and more energy-efficient vehicles
The demand for automotive chips is significantly supported by government initiatives promoting electric vehicles (EVs) and hybrid electric vehicles (HEVs), along with strict emission regulations and safety standards. In addition, rising investments in smart cities and connected mobility solutions are boosting the growth of the market, as vehicles increasingly require high-performance semiconductors
For instance, in March 2024, the U.S. Department of Energy announced funding for semiconductor innovation projects aimed at enhancing EV performance and supporting the development of advanced automotive chip technologies, offering strong growth opportunities for the market
Technological innovations, such as the development of Silicon Carbide (SiC) and Gallium Nitride (GaN) chips, improved microcontrollers, and power-efficient systems, are driving the growth of the automotive chips market. These advancements are expected to enhance vehicle performance, lower energy consumption, and support the global shift towards electrification and automation in the automotive industry
Report Scope and Automotive Chips Market Segmentation
Attributes
Automotive Chips Key Market Insights
Segments Covered
By Type: Analog ICs, Microcontrollers and Microprocessors, and Logic ICs
By Vehicle: Passenger and Commercial
By Application: Chassis, Powertrain, Safety, Telematics and Infotainment, and Body Electronics
Expansion of Electric Vehicle Charging Infrastructure
Supportive Government Initiatives
Value Added Data Infosets
In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis
Automotive Chips Market Trends
“Advancements in Autonomous Driving Technologies”
A key trend in the global automotive chips market is the rapid progress in autonomous driving technologies, which is increasing the demand for advanced semiconductors capable of handling real-time processing, decision-making, and vehicle-to-everything (V2X) communications
Automotive chips supporting LiDAR, radar, camera systems, and AI algorithms are gaining traction as automakers aim to achieve higher levels of driving automation, such as Level 3 and beyond, enhancing vehicle safety and driving comfort
For instance, in February 2025, NVIDIA launched its next-generation DRIVE Thor chip, combining autonomous driving, cockpit functions, and infotainment systems into a single platform to power future self-driving vehicles
The integration of AI-driven chips into automotive systems allows vehicles to make smarter, faster decisions, contributing to safer and more efficient transportation networks
This trend is revolutionizing the automotive industry, pushing manufacturers to invest heavily in semiconductor innovations to stay competitive in the evolving landscape of autonomous and connected mobility
Automotive Chips Market Dynamics
Driver
“Surge in Demand for Connected Vehicles and Smart Mobility”
The automotive chips market is experiencing significant growth due to the rising demand for connected vehicles and smart mobility solutions, where real-time data exchange between vehicles and infrastructure is crucial
With the proliferation of 5G networks and the Internet of Things (IoT), vehicles increasingly rely on semiconductors for functions such as navigation, remote diagnostics, OTA updates, and driver assistance systems
Automotive chips play a critical role in enabling seamless connectivity and enhancing the overall driving experience, supporting features such as predictive maintenance, traffic management, and personalized in-car services
For instance, in January 2025, Qualcomm Technologies announced the expansion of its Snapdragon Digital Chassis offerings to provide automakers with comprehensive solutions for connectivity, autonomy, and computing power
As smart mobility ecosystems continue to develop, the demand for high-performance automotive chips will accelerate, making them integral to the future of intelligent transportation systems
Opportunity
“Expansion of Electric Vehicle Charging Infrastructure”
The growing expansion of electric vehicle (EV) charging infrastructure worldwide is presenting a significant opportunity for the automotive chips market, as EVs require sophisticated semiconductor solutions for energy management and battery optimization
Automotive chips are essential for fast-charging capabilities, smart grid integration, and efficient power conversion systems, improving the performance and adoption of EVs globally
Governments, utility companies, and private investors are heavily funding the rollout of fast chargers, wireless charging stations, and vehicle-to-grid (V2G) technologies, further driving the demand for specialized automotive semiconductors
For instance, in November 2024, the European Investment Bank (EIB) announced a USD 552 million investment in expanding EV charging networks across Europe, boosting the need for innovative automotive chip technologies
As EV adoption surges and charging networks become more advanced, the automotive chips market is poised to experience strong growth, creating new revenue streams and technological breakthroughs
Restraint/Challenge
“Supply Chain Disruptions and Semiconductor Shortages”
The automotive chips market continues to face challenges due to ongoing supply chain disruptions and semiconductor shortages, affecting production timelines and increasing costs for automakers
Factors such as geopolitical tensions, natural disasters, and fluctuations in raw material availability have highlighted vulnerabilities in global semiconductor supply chains
These shortages have led to vehicle production delays, inventory backlogs, and increased competition among industries such as consumer electronics and automotive for critical chip supplies
To mitigate this challenge, investments in regional semiconductor manufacturing hubs, diversification of supply sources, and strategic partnerships will be crucial for ensuring a resilient and stable supply of automotive chips moving forward
Automotive Chips Market Scope
The market is segmented on the basis of type, vehicle, application, and propulsion.
Segmentation
Sub-Segmentation
By Type
Analog ICs
Microcontrollers and Microprocessors
Logic ICs
By Vehicle
Passenger Vehicles
Commercial Vehicles
By Application
Chassis
Powertrain
Safety
Telematics and Infotainment
Body Electronics
By Propulsion
ICE (Internal Combustion Engine)
BEVs (Battery Electric Vehicles)
HEVs (Hybrid Electric Vehicles)
Automotive Chips Market Regional Analysis
“Asia Pacific is the Dominant Region in the Automotive Chips Market”
Asia Pacific holds the largest share in the automotive chips market, driven by rapid vehicle production, technological advancements, and the strong presence of semiconductor manufacturers
China, Japan, and South Korea are key contributors, fueled by increasing demand for electric vehicles (EVs), connected cars, and autonomous driving technologies
Government initiatives and investments in smart mobility and automotive innovation are further boosting the growth of the automotive chips market in the region
With a strong manufacturing base, rising EV adoption, and continuous tech innovation, Asia Pacific is expected to maintain its dominance in the automotive chips market over the coming years
“South America is projected to register the Highest Growth Rate”
South America is projected to register the highest growth rate in the automotive chips market, driven by rising vehicle production and growing demand for advanced automotive technologies
Brazil and Argentina are leading the market expansion, supported by increasing investments in automotive manufacturing and a shift toward electric and hybrid vehicles
Government policies promoting sustainable mobility and local semiconductor production are accelerating market growth across the region
With supportive government initiatives and growing automotive innovation, South America is expected to emerge as the fastest-growing region in the automotive chips market in the coming years
Automotive Chips Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
The Major Market Leaders Operating in the Market Are:
Latest Developments in Global Automotive Chips Market
In January 2024, Texas Instruments Incorporated launched new semiconductors designed to enhance automotive safety and intelligence, with a focus on ensuring efficient and secure control of power flow in battery management systems, strengthening its position in the automotive technology market
In March 2024, Sony Semiconductor Solutions Corporation announced the commencement of operations in several production lines at its newly developed facility of Sony Device Technology (Thailand) Co., Ltd., focused on assembling image sensors for automotive applications, reinforcing its expansion strategy in the automotive semiconductors sector
In June 2023, Nidec Corporation and Renesas Electronics Corporation collaborated to create semiconductor solutions for an advanced E-Axle (X-in-1 system) integrating EV drive motors and power electronics for electric vehicles (EVs), aiming to accelerate innovation in the EV semiconductor landscape
In May 2023, Infineon Technologies AG and Hon Hai Technology Group (Foxconn) established a long-term partnership to advance electromobility, emphasizing silicon carbide (SiC) technology by combining Infineon’s expertise with Foxconn’s automotive systems capabilities, positioning themselves to lead the electric vehicle semiconductor market
In February 2023, Wolfspeed Inc. and ZF announced a strategic partnership with a joint innovation lab to advance Silicon Carbide systems for mobility, industrial, and energy applications, alongside ZF’s plan to invest significantly in a cutting-edge 200mm Silicon Carbide device factory in Ensdorf, Germany, further bolstering their leadership in Silicon Carbide technology
SKU-
Get online access to the report on the World's First Market Intelligence Cloud
Interactive Data Analysis Dashboard
Company Analysis Dashboard for high growth potential opportunities
Research Analyst Access for customization & queries
Competitor Analysis with Interactive dashboard
Latest News, Updates & Trend analysis
Harness the Power of Benchmark Analysis for Comprehensive Competitor Tracking
Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.
The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.
Customization Available
Data Bridge Market Research is a leader in advanced formative research. We take pride in servicing our existing and new customers with data and analysis that match and suits their goal. The report can be customized to include price trend analysis of target brands understanding the market for additional countries (ask for the list of countries), clinical trial results data, literature review, refurbished market and product base analysis. Market analysis of target competitors can be analyzed from technology-based analysis to market portfolio strategies. We can add as many competitors that you require data about in the format and data style you are looking for. Our team of analysts can also provide you data in crude raw excel files pivot tables (Fact book) or can assist you in creating presentations from the data sets available in the report.
Claudio Rondena
Group Business Development & Strategic Marketing Director, C.O.C Farmaceutici SRL
"This morning we were involved in the first part, the data presentation of MKT analysis, selected abstract from your work. The board team was really impressed and very appreciated, as well."
David Manning - Thermo Fisher Scientific
Director, Global Strategic Accounts,
Dear Ricky, I want to thank you for the excellent market analysis (LIMS INSTALLED BASE DATA) that you and your team delivered, especially end of year on short notice.
Sachin and Shraddha captured the requirements, determined their path forward and executed quickly.
You, Sachin and Shraddha have been a pleasure to work with – very responsive, professional and thorough.
Your work is much appreciated.
Manager - Market Analytics,
Uriah D. Avila - Zeus Polymer Solutions
Thank you for all the assistance and the level of detail in the market report. We are very pleased with the results and the customization. We would like to continue to do business.
Business Development Manager,
(Pharmaceuticals Partner for Nasal Sprays) | Renaissance Lakewood LLC
DBMR was attentive and engaged while discussing the Global Nasal Spray Market. They understood what we were looking for and was able to provide some examples from the report as requested. DBMR Service team has been responsive as needed. Depending on what my colleagues were looking for, I will recommend your services and would be happy to stay connected in case we can utilize your research in the future.
Business Intelligence and Analytics,
Ipsen Biopharm Limited
We are impressed by the CENTRAL PRECOCIOUS PUBERTY (CPP) TREATMENT report - so a BIG thanks to you colleagues.
Competition Analyst,
Basler Web
I just wanted to share a quick note and let you know that you guys did a really good job. I’m glad I decided to work with you. I shall continue being associated with your company as long as we have market intelligence needs.
Marketing Director,
Buhler Group
It was indeed a good experience, would definitely recommend and come back for future prospects.
COO,
A global leader providing Drug Delivery Services
DBMR did an outstanding job on the Global Drug Delivery project, We were extremely impressed by the simple but comprehensive presentation of the study and the quality of work done. This report really helped us to access untapped opportunities across the globe.
Marketing Director,
Philips Healthcare
The study was customized to our targets and needs with well-defined milestones. We were impressed by the in-depth customization and inclusion of not only major but also minor players across the globe. The DBMR Market position grid helped us to analyze the market in different dimension which was very helpful for the team to get into the minute details.
Product manager,
Fujifilms
Thankful to the team for the amazing coordination, and helping me at the last moment with my presentation. It was indeed a comprehensive report that gave us revenue impacting solution enabling us to plan the right move.
Investor relations,
GE Healthcare
Thank you for the report, and addressing our needs in such short time. DBMR has outdone themselves in this project with such short timeframe.
Market Analyst,
Medincell
We found the results of this study compelling and will help our organization validate a market we are considering to enter. Thank you for a job well done.
Andrew - Senior Global Marketing Manager,
Medtronic (US)
I want to thank you for your help with this report – It’s been very helpful in our business planning and it well organized.
Amarildo - Manager, Global Strategic Alignment
MasterCard
We believe the work done by Data Bridge Team for our requirements in the North America Loyalty Management Market was fantastic and would love to continue working with your team moving forward.
Tor Hammer
Green Nexus LLc
Thank you for your quick response to this unfortunate circumstance. Please extend my thanks to your reach team. I will be contacting you in the future with further projects
I acknowledge the difficulty given by the very short warning for this report, and I think that its quality and your delivering time have been very satisfying.
Obviously, as a provider Data Bridge Market Research will be considered as a plus for future needs of Nippon Gases.
Yuki Kopyl (Asian Business Development Department)
UENO FOOD TECHNO INDUSTRY, LTD. (JAPAN)
Xylose report was very useful for our team. Thank you very much & hope to work with you again in the future