Automotive Semiconductor Global Market Opportunities And Strategies to 2034

The automotive semiconductor market is segmented by component into processor, analog IC, discrete power, sensor, memory, and other components. The processor market was the largest segment of the automotive semiconductor market segmented by component, accounting for 27.65% or $16.75 billion of the total in 2024. Going forward, the discrete power segment is expected to be the fastest growing segment in the automotive semiconductor market segmented by component, at a CAGR of 13.88% during 2024-2029.

The automotive semiconductor market is segmented by vehicle type into passenger vehicle, light commercial vehicle, and medium and heavy commercial vehicle. The passenger vehicle was the largest segment of the automotive semiconductor market segmented by vehicle type, accounting for 64.74% or $39.22 billion of the total in 2024. Going forward, the light commercial vehicle segment is expected to be the fastest growing segment in the automotive semiconductor market segmented by vehicle type, at a CAGR of 12.40% during 2024-2029.

The automotive semiconductor market is segmented by application into powertrain, safety, body electronics, chassis, and telematics and infotainment. The safety market was the largest segment of the automotive semiconductor market segmented by application, accounting for 26.64% or $16.14 billion of the total in 2024. Going forward, the telematics and infotainment segment is expected to be the fastest growing segment in the automotive semiconductor market, segmented by application, at a CAGR of 13.75% during 2024-2029.

The automotive semiconductor market is segmented by propulsion type into internal combustion engine, electric, and hybrid. The internal combustion engine market was the largest segment of the automotive semiconductor market segmented by propulsion type, accounting for 66.85% or $40.5 billion of the total in 2024. Going forward, the electric segment is expected to be the fastest growing segment in the automotive semiconductor market segmented by propulsion type, at a CAGR of 22.80% during 2024-2029.

Asia Pacific was the largest region in the automotive semiconductor market, accounting for 43.78% or $26.52 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the automotive semiconductor market will be Asia Pacific and North America where growth will be at CAGRs of 13.11% and 11.53% respectively. These will be followed by Western Europe and Eastern Europe where the markets are expected to grow at CAGRs of 11.26% and 11.18% respectively.

The global automotive semiconductor market is highly concentrated, with a small number of large players dominating the market. The top ten competitors in the market made up to 61.26% of the total market in 2023. Infineon Technologies AG was the largest competitor with a 16.44% share of the market, followed by NXP Semiconductors N.V. with 10.97%, Renesas Electronics Corporation with 9.26%, STMicroelectronics N.V. with 8.03%, Texas Instruments Inc. with 6.42%, Analog Devices Inc. with 2.37%, ON Semiconductor Corporation. with 2.06%, ROHM Co. Ltd. with 2.00%, Robert Bosch GmbH with 1.97% and Toshiba Corporation with 1.73%.

The top opportunities in the automotive semiconductor markets, segmented by component, will arise in the processor segment, which will gain $28.46 billion of global annual sales by 2029. The top opportunities in the automotive semiconductor markets segmented by vehicle type will arise in the passenger vehicle segment, which will gain $69.14 billion of global annual sales by 2029. The top opportunities in the automotive semiconductor markets segmented by propulsion type will arise in the passenger vehicle segment, which will gain $36.65 billion of global annual sales by 2029. The top opportunities in the automotive semiconductor markets, segmented by application, will arise in the safety segment, which will gain $28.94 billion of global annual sales by 2029. The automotive semiconductor market size will gain the most in the China at $13.67 billion.

This report describes and explains the automotive semiconductor market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global automotive semiconductor market reached a value of nearly $60.59 billion in 2024, having grown at a compound annual growth rate (CAGR) of 7.49% since 2019. The market is expected to grow from $60.59 billion in 2024 to $106.75 billion in 2029 at a rate of 11.99%. The market is then expected to grow at a CAGR of 11.34% from 2029 and reach $182.62 billion in 2034.

Growth in the historic period resulted from the rise in adoption of electric vehicles, growth in automotive infotainment systems, government incentives and investments in electronic vehicle infrastructure. Factors that negatively affected growth in the historic period were shortage of raw materials and regulatory compliance challenges.

Going forward, the rising number of connected vehicles, expansion of semiconductor foundries, rising consumer demand for smart and digital cockpit solutions and rising adoption of automation in fleet management will drive the growth. Factor that could hinder the growth of the automotive semiconductor market in the rising cybersecurity threats in connected vehicles and integration challenges with legacy automotive systems.

Market-trend-based strategies for the automotive semiconductor market include advancements in automotive semiconductor technology with ultra-wideband UWB and RISC V microcontrollers, strategic partnership to advance gallium nitride technology for automotive applications, Stellantis and Foxconn collaborate to launch siliconauto for advanced automotive semiconductors, advancements in eSIC MOSFET technology for automotive electrification and advancements in automotive semiconductor technology and in-vehicle networking.

Player-adopted strategies in the AI-powered design tools market include focus on new launches and product developments to strengthen its position.

To take advantage of the opportunities, the analyst recommends the automotive semiconductor companies to focus on sustainable product innovation to meet rising demand, focus on expanding sustainable product lines for personal and home care markets, focus on developing biobased and biodegradable surfactants aligned with green chemistry, focus on developing biotechnology-driven solutions for industrial applications, focus on glycolipids to capture high-growth opportunities, expand in emerging markets, continue to focus on developed markets, focus on expanding global and regional distribution partnerships, focus on tiered pricing to align with application value and customer segment, focus on targeting sustainability-focused industries, focus on leveraging academic and industry collaborations, focus on targeting key end-users for biosurfactants.

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