Automotive Semiconductor Market Report 2026

The automotive semiconductor market size has grown rapidly in recent years. It will grow from $66.35 billion in 2025 to $74.04 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to increasing use of silicon-based semiconductor devices, early adoption in powertrain and safety electronics, expansion of analog and discrete components in basic automotive systems, growth in vehicle infotainment semiconductor usage, reliance on traditional sensor and memory architectures.

The automotive semiconductor market size is expected to see rapid growth in the next few years. It will grow to $114.65 billion in 2030 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to rising demand for high-performance automotive processors, increasing deployment of wide-bandgap semiconductors, expansion of semiconductor use in ev battery systems, development of advanced adas-oriented chipsets, increasing integration of telematics and connectivity semiconductor modules. Major trends in the forecast period include development of AI-enhanced automotive semiconductor platforms, expansion of autonomous vehicle chip architectures, growth of ev-oriented power semiconductor solutions, integration of IoT-connected semiconductor systems, advancement of secure cloud-linked automotive processing modules.

The rising demand for electric and hybrid vehicles is expected to drive the growth of the automotive semiconductor market. Electric and hybrid vehicles are automobiles powered fully or partially by electric energy, using either a battery-electric drivetrain or a combination of an internal combustion engine and an electric motor. The adoption of electric and hybrid vehicles is increasing due to growing consumer preference for cleaner and more energy-efficient transportation solutions. Automotive semiconductors support these vehicles by enabling efficient power management, advanced control systems, and optimized energy usage, which enhance overall vehicle performance. For example, in 2025, the International Energy Agency, a France-based intergovernmental organization, reported that global electric car sales exceeded 17 million in 2024, reflecting a growth of over 25%, with an additional 3.5 million units sold compared to 2023. Thus, the rising demand for electric and hybrid vehicles is expected to propel the growth of the automotive semiconductor market.

Leading companies in the automotive semiconductor market are concentrating on developing innovative solutions, such as silicon carbide (SiC) power technologies, to enhance energy efficiency, thermal performance, and reliability in electric vehicle power electronics. SiC power devices enable faster switching speeds, reduced power losses, and higher voltage tolerance, making them critical for next-generation EV traction inverters, onboard chargers, and DC-DC converters. For example, in November 2025, SemiQ Inc., a US-based semiconductor company, launched its high-performance 1200V SiC MOSFET modules designed to deliver superior efficiency and robust thermal management in demanding automotive applications. Built to support high-power EV systems, these modules improve overall drivetrain performance, allowing automakers to achieve increased range, faster charging, and higher power density. They provide exceptionally low switching losses and high thermal conductivity, ensuring greater system efficiency and effective heat management in high-power automotive applications. Additionally, these modules offer strong voltage handling and rapid switching speeds, supporting compact inverter and charger designs with enhanced power density.

In November 2025, SK Keyfoundry, a South Korea-based specialty semiconductor foundry, acquired SK Powertech for an undisclosed sum. Through this acquisition, SK Keyfoundry aimed to accelerate its development of silicon carbide (SiC) power semiconductors and strengthen its position within the automotive power device supply chain. SK Powertech is a South Korea-based provider of SiC wafer and power device manufacturing solutions that enable high-efficiency power conversion for automotive and industrial applications.

Major companies operating in the automotive semiconductor market are Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments Incorporated, Renesas Electronics Corporation, NXP Semiconductors N.V., Robert Bosch GmbH, Toshiba Corporation, Micron Technology Inc., Analog Devices Inc., ROHM Co., Ltd., Navitas Semiconductor Corporation, Sanan Optoelectronics Co., Ltd., Enkris Semiconductor Inc., GaN Systems Inc., Exagan SAS, Dialog Semiconductor Plc, Cypress Semiconductor Corporation, GigaDevice Semiconductor Inc., China Resources Microelectronics Limited (CR Micro), Silan Microelectronics Co., Ltd., Continental Device India Limited (CDIL), MosChip Technologies Limited, Unity Semiconductor Corp.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the automotive semiconductor market by increasing the cost of imported wafers, chips, and critical components sourced largely from Asia, resulting in higher production expenses and supply chain delays for automakers in North America and Europe. Safety systems, power electronics, and infotainment segments are most affected due to their high semiconductor dependency. However, tariffs are fostering domestic chip fabrication initiatives, encouraging regional sourcing, and accelerating innovation in next-generation automotive semiconductors to enhance long-term supply-chain resilience.

The automotive semiconductor market research report is one of a series of new reports that provides automotive semiconductor market statistics, including automotive semiconductor industry global market size, regional shares, competitors with an automotive semiconductor market share, detailed automotive semiconductor market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive semiconductor industry. This automotive semiconductor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Automotive semiconductors leverage semiconductor materials such as silicon, germanium, gallium arsenide, and organic semiconductors to exploit their electronic properties. These components are vital in creating semiconductor devices essential for a wide range of automotive products. Their ability to modify electrical conductivity through magnetic or electrical fields makes them valuable in diverse applications and devices.

Key components of automotive semiconductors encompass processors, analog IC, discrete power, sensors, memory, and other essential elements. Processors within automotive semiconductors execute fundamental arithmetic, logic, and I/O tasks, directing operations across various vehicle components. They serve to control vehicle parts while coordinating user actions. Automotive semiconductors are utilized across passenger vehicles, light and heavy commercial vehicles, spanning propulsion types such as internal combustion engines, electric, and hybrid setups. Their applications include powertrain, safety systems, body electronics, chassis, telematics, and infotainment within vehicles.Asia-Pacific was the largest region in the automotive semiconductor market in 2025, and it is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive semiconductor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive semiconductor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive semiconductor market consists of sales of microcontrollers (MCU), input and output devices, circuits, AD (analog and digital) conversion circuits, power supply components, in-vehicle communication circuits, and sensors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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