Global Auto Semiconductor Market Outlook 2025–2030

Automotive Semiconductor Market Set for Robust Expansion Through 2030 as Electrification and ADAS Adoption Accelerate

A new research publication, “Automotive Semiconductor Market by Discrete Power Device, Analog IC, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), Internal Combustion Engine (ICE), Electric, Powertrain, and ADAS & Autonomous Driving – Global Forecast to 2030,” has been added to ResearchAndMarkets.com’s growing portfolio of automotive technology reports. The study offers a comprehensive analysis of one of the fastest-evolving technology segments shaping the future of mobility: automotive semiconductors.

According to the report, the global automotive semiconductor market is set for remarkable growth, increasing from USD 77.42 billion in 2025 to USD 133.05 billion by 2030, representing a strong CAGR of 11.4%. This accelerated expansion underscores the pivotal role semiconductors play in electrification, autonomy, safety, connectivity, and vehicle intelligence—all central pillars of the next-generation automotive ecosystem.

A Market in Transition: Electrification, ADAS, and Software-Defined Vehicles Lead the Charge

The automotive industry is undergoing its most significant transformation in a century, driven by rapid advances in electric mobility, digitalization, and automation. Semiconductors—ranging from power devices and microcontrollers to sensors and communication chips—form the backbone of these innovations.

Key Growth Drivers Highlighted in the Report:

1. Electrification at Breakneck Speed

Globally, governments are tightening emissions regulations and incentivizing clean energy adoption. As automakers scale EV production, semiconductor demand has skyrocketed. Electric vehicles require up to 2 to 3 times more semiconductor content than traditional internal combustion vehicles.

Semiconductors are essential for EV components such as:

• Battery management systems
• Inverters and converters
• Traction inverters
• On-board chargers
• Thermal management systems

The report highlights that wide-bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN) are gaining rapid traction due to their superior efficiency, compactness, and thermal performance—critical for boosting EV driving range and fast-charging capabilities.

2. ADAS and Autonomous Features Continue to Advance

The shift from Level 1 to Level 2+ and Level 3 autonomy has sharply increased demand for:

• High-performance microcontrollers
• Domain controllers
• Radar and LiDAR sensors
• AI accelerators
• High-speed memory and communication ICs

ADAS features such as adaptive cruise control, automated braking, lane-keeping, and traffic sign recognition require sophisticated computing and real-time perception capabilities. This surge in sensor fusion and AI processing drives major investments in advanced semiconductors.

3. Connected and Software-Defined Vehicles (SDVs)

Vehicles are increasingly evolving into connected mobility platforms, powered by over-the-air (OTA) software updates, enhanced infotainment systems, and V2X communication.

SDVs rely on:

• High-speed processors
• Robust cybersecurity chips
• Edge computing modules
• Smart connectivity ICs

This evolution is dramatically raising semiconductor content per vehicle and pushing suppliers to innovate domain controllers, zonal architectures, and cutting-edge E/E platforms.

Overcoming Challenges: Supply Chain Fragility and Production Complexities

Despite its strong outlook, the automotive semiconductor market faces several headwinds:

Supply Chain Volatility

The post-pandemic era exposed severe vulnerabilities in automotive chip supply, highlighting the need for:

• Regionalization of production
• Multi-sourcing strategies
• Manufacturing capacity expansion

While semiconductor shortages have eased, long-term resilience remains a top priority.

Wide-Bandgap Semiconductor Production Constraints

Producing SiC and GaN devices at automotive-grade quality and scale is complex, requiring:

• High-purity materials
• Specialized fabrication processes
• Stringent durability and reliability testing

The difficulty in scaling these technologies at cost continues to pose challenges.

Stringent Automotive Standards

Automotive semiconductors must comply with demanding safety and performance requirements, such as:

• AEC-Q100
• ISO 26262
• Automotive functional safety standards

Meeting these norms while supporting increasing levels of automation and computing intensity adds significant engineering complexity.

Despite these obstacles, the report emphasizes that growing OEM-supplier collaborations and public-private semiconductor initiatives worldwide are setting the stage for long-term supply stability.

Market Segmentation: A Detailed Breakdown

The report segments the automotive semiconductor market across multiple dimensions—component type, vehicle category, propulsion technology, application area, and geography—offering a granular view of growth opportunities and strategic investments.

Electric Propulsion to Witness the Fastest CAGR Through 2030

The electric vehicle (EV) segment is forecast to register the highest CAGR among all propulsion types. Several factors contribute to this momentum:

• Massive global investments in EV manufacturing
• Expansion of gigafactories in Europe, China, and North America
• Government-led zero-emission vehicle mandates
• Rapid infrastructure buildout for fast charging
• Rising consumer adoption of long-range EVs

Semiconductors enable efficient power flow, energy management, and advanced thermal control—cornerstones of EV performance. ADAS integration, smart connectivity, and the rise of autonomous EVs also increase chip demand in this segment.

Powertrain Segment to Dominate the Market by 2030

The powertrain application segment is projected to command the largest share of the market in 2030. This reflects the central importance of semiconductor technologies in enabling:

• High-efficiency internal combustion engines
• Hybrid powertrains
• Fully electric drivetrains

Key powertrain-related applications include:

• Engine control units (ECUs)
• Transmission control units
• Battery management systems
• Electric drive modules
• Inverters and converters

The adoption of 800 V EV platforms, predictive powertrain control, and modular power electronics significantly boosts semiconductor expenditure in this category.

Europe Forecast to Achieve the Second-Highest Regional CAGR

Europe is poised to witness the second-fastest growth rate, backed by:

• Strict CO₂ reduction norms
• Strong momentum in EV adoption
• Rapid buildout of charging infrastructure
• Government-supported autonomous driving pilots
• Shift toward software-defined and connected vehicle architectures

Countries such as Germany, France, and the Netherlands are driving innovation through:

• Industrial semiconductor alliances
• R&D investments
• Localized chip production initiatives

European OEMs and Tier-1 suppliers are accelerating partnerships with semiconductor players to build resilient, future-ready supply chains.

Strategic Value of the Report

This report offers essential guidance for industry leaders, emerging players, and investors by providing:

• Accurate forecasts across multiple market segments
• Analysis of major growth drivers and restraints
• Insights into market opportunities created by SDVs, AI, EVs, and ADAS
• A clear understanding of the competitive landscape
• Case studies showcasing successful semiconductor-driven innovations

Stakeholders can use these insights to refine strategies, identify investment opportunities, and enhance their market positioning.

Report Highlights

Market Dynamics at a Glance

Drivers

• Rapid vehicle electrification and decarbonization initiatives
• Advancements in ADAS and autonomous technologies
• Rise of software-defined and connected vehicles

Challenges

• Limited scalability of SiC and GaN production
• High complexity in meeting automotive-grade standards
• Integration challenges in advanced E/E architectures

Opportunities

• Localization and strengthening of semiconductor supply chains
• Rise of AI-driven domain controllers
• Growing demand for fast-charging and vehicle-to-grid (V2G) solutions

Case Studies: Industry Innovation in Action

• Mobileye leverages STMicroelectronics’ technologies to enhance vehicle safety.
• Flex integrates STMicroelectronics’ solutions to accelerate innovation across automotive platforms.
• Gigabyte’s pilot serves as an autonomous driving control unit for Taiwan’s first self-driving bus.

Leading Companies Profiled

The report features extensive profiles of major global semiconductor players, including:

• Infineon Technologies
• NXP Semiconductors
• STMicroelectronics
• Texas Instruments
• Renesas Electronics
• Qualcomm
• Bosch
• Rohm
• Analog Devices
• Toshiba
• Broadcom
• Continental AG
• Denso Corporation
• Sensata Technologies
  …and many more industry giants shaping the future of mobility electronics.

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