Global Automotive Semiconductor Market Outlook & Forecast 2023-2028 - Significant Growth with Focus on Electric and Autonomous Vehicles - CAGR of 11.97% Expected to 2028

Dublin, Feb. 12, 2024 (GLOBE NEWSWIRE) -- The "Global Automotive Semiconductor Market - Outlook & Forecast 2023-2028" report has been added to's offering.

The global automotive semiconductor market is expected to grow at a CAGR of 11.97% from 2022-2028. The rising development of autonomous vehicles increases the demand for automotive semiconductors for several reasons, mainly due to the rising need for sensors, processors, and communication.

The global automotive semiconductor market is highly fragmented, with many local and international players. The global automotive semiconductor market is fragmented due to local and international players. The leading global automotive semiconductor market vendors are Robert Bosch, Continental, Infineon Technologies, NXP Semiconductors, DENSO Corporation, Renesas Electronic Corporation, and others. The competition among these players is intense.

The rapidly changing technological environment can adversely affect vendors as customers expect continual innovations and upgrades in the automotive industry. The present scenario forces vendors to refine their unique value proposition to achieve a strong market presence.

Growing Electric Vehicle Industry

The growing electric vehicle (EV) industry significantly drives the automotive semiconductor market's growth. As electric vehicles become more popular and widespread, they introduce new technological requirements and opportunities that rely heavily on semiconductor technology.

Electric vehicles rely on advanced power electronics to control the flow of electricity between the battery, motor, and other components. Semiconductors like insulated gate bipolar transistors (IGBTs) and silicon carbide (SiC) devices are critical for efficient power conversion and energy management. Battery management systems (BMS) in EVs monitor and manage EV batteries' performance, health, and safety. For this, semiconductors are used for voltage and current sensing, temperature monitoring, and cell balancing within the battery pack. For optimized efficiency and smooth acceleration, EVs require precise motor control, which requires semiconductors to control and ensure optimal performance and energy usage.


Shortage of Semiconductors

The shortage of semiconductors in the global automotive semiconductor market is a significant challenge affecting the global automotive industry. This shortage can lead to production delays, reduced vehicle availability, and disruptions across the supply chain. Addressing this challenge requires a multi-faceted approach involving collaboration among various stakeholders. The automotive industry is currently facing a critical challenge due to a shortage of semiconductors, impacting various aspects of vehicle production and operations. This shortage has emerged as a result of several interrelated factors.


Based on the component segmentation, the microcontrollers segment dominated with a share of around 37% in the global automotive semiconductor market. The automotive semiconductor market comprises various component segments that play integral roles in the design and functionality of modern vehicles. Each segment contributes to vehicle performance, safety, connectivity, and user experience.

Some of the component segment's fundamental market dynamics include innovation and technological advancements, consumer demand & user experience, electric & autonomous vehicles, connectivity & IoT integration, regulatory standards & safety requirements, semiconductor industry, efficiency and environmental concerns, and market competition. Rapid technological advancements drive innovation in automotive semiconductor components.


The powertrain application segment dominated the global automotive semiconductor market in 2022. Modern powertrain systems are becoming increasingly complex, with more and more electronic components. This leads to a demand for more powerful and sophisticated semiconductors to control these systems. Moreover, automotive manufacturers increasingly prioritize vehicle safety to enhance consumer confidence and comply with regulatory requirements.

This includes integrating various safety systems like adaptive cruise control, lane departure warning, automatic emergency braking, pedestrian detection, and more, all of which rely on semiconductor components. Also, the demand for body electronics in the automotive semiconductor industry will grow during the forecast period.


The global automotive semiconductor market by vehicle type is segmented into passenger, light, and heavy commercial vehicles. The passenger vehicle segment dominated the market due to new and advanced features in modern vehicles and the growing electric vehicle industry across the automotive semiconductor market. Semiconductor components in passenger vehicles are utilized for various purposes, including infotainment systems, ADAS features, comfort and convenience systems, powertrain control, and more.

As vehicles become more connected and automated, the demand for semiconductor technology in passenger vehicles continues to rise. Moreover, commercial vehicles, including trucks, buses, vans, and other vehicles for transporting heavy goods and passengers, depend on semiconductors due to powertrain control, telematics, fleet management systems, safety features, and in-cabin technologies. As the logistics and transportation industry evolves, there is an increasing need for advanced semiconductor solutions to improve efficiency and safety in commercial vehicles.


The higher adoption of automotive semiconductors globally is driven by several transformative trends and factors within the automotive industry. These factors are shaping the way vehicles are designed, manufactured, and experienced, leading to a significant increase in the integration of semiconductor technology. The shift toward electrification in the automotive industry requires sophisticated semiconductor components for battery management, power electronics, motor control, and energy efficiency. EVs rely heavily on semiconductors to manage power flows, optimize charging, and enhance performance.

APAC dominated the global automotive semiconductor market with a CAGR of around 12% during the forecast period. Rising economic growth, the establishment of new businesses, company expansions, and increased automotive activities are mainly driving the demand for automotive semiconductors in the region. China, in particular, is the largest automotive market in the world and has made significant investments in electric and autonomous vehicle technologies, propelling the growth of the automotive semiconductor market. Asia Pacific semiconductor manufacturers, like Taiwan's TSMC and South Korea's Samsung, are critical players in providing advanced manufacturing capabilities for automotive chips.

Market Opportunities & Trends

  • Growing Adoption of Silicon Carbide in the Automotive Semiconductor Industry
  • New and Advanced Features in Modern Vehicles
  • Rising Development of Autonomous Vehicles
  • High Demand for Infotainment and Telematics Services

Market Growth Enablers

  • Growing EV Industry
  • High Usage of System-On-Chip
  • Advanced Automotive Semiconductors to Facilitate AI, ML & IoT

Market Restraints

  • Lack of Skilled Labor
  • Shortage of Semiconductors

Key Company Profiles

  • Continental
  • Infineon Technologies
  • NXP Semiconductors
  • Renesas Electronics
  • Robert Bosch

Other Prominent Vendors

  • Allegro MicroSystems
  • Amphenol
  • Analog Devices
  • Aptiv
  • Autoliv
  • BorgWarner
  • CTS
  • Elmos Semiconductor
  • Intel Corporation
  • Magna International
  • Melexis
  • Micron Technology
  • ON Semiconductor
  • Quanergy Solutions
  • ROHM
  • Samsung Electronics
  • Sensata Technologies
  • SK Hynix
  • STMicroelectronics
  • TE Connectivity
  • Texas Instruments
  • Toshiba Electronic Devices & Storage
  • Valeo
  • ZF Friedrichshafen

Key Attributes:

Report AttributeDetails
No. of Pages374
Forecast Period2022 - 2028
Estimated Market Value (USD) in 2022$68.5 Billion
Forecasted Market Value (USD) by 2028$135 Billion
Compound Annual Growth Rate11.9%
Regions CoveredGlobal

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Global Automotive Semiconductor Market

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