Auto Integrated Circuit (IC) Market Report 2026

The auto integrated circuit (ic) market size has grown strongly in recent years. It will grow from $45.58 billion in 2025 to $48.61 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to growing demand for automotive electronics, increased adoption of engine management systems, rising vehicle production in emerging markets, improvements in sensor technologies, early integration of microcontrollers in passenger vehicles.

The auto integrated circuit (ic) market size is expected to see strong growth in the next few years. It will grow to $62.2 billion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to advancement in autonomous driving technologies, rising adoption of electric vehicles, increased demand for smart vehicle systems, integration of AI in automotive electronics, development of next-generation battery management ic. Major trends in the forecast period include enhanced automotive safety systems, energy-efficient automotive electronics, advanced vehicle connectivity solutions, smart sensor integration, adaptive power management systems.

The rising adoption of electric vehicles (EVs) is expected to drive the growth of the auto integrated circuit (IC) market. EVs use electric motors powered by rechargeable batteries rather than traditional internal combustion engines. As environmental awareness grows, both consumers and governments are increasingly adopting EVs to reduce carbon emissions and combat climate change. This trend boosts demand for auto ICs, which are essential for battery management, power conversion, motor control, and advanced driver assistance systems. For example, in January 2025, Cox Automotive reported that US EV sales reached 1,212,758 units in 2023 a 49% increase from 2022 and further rose to 1,301,411 units in 2024, representing 8.1% of total vehicle sales. Therefore, the increasing EV adoption is fueling growth in the auto IC market.

Key players in auto integrated circuit (IC) market are leveraging advanced semiconductor technologies, such as chiplet technology, to enhance performance, scalability, and flexibility. Chiplet technology builds a system-on-chip (SoC) from multiple smaller chip modules rather than a single monolithic die, improving design flexibility, manufacturing yield, and cost efficiency. For instance, in November 2024, Renesas Electronics Corporation launched the R-Car X5H, the industry’s first automotive multi-domain SoC using 3-nanometer process technology. It integrates AI acceleration, GPU performance, mixed-criticality processing, and chiplet extension capabilities, supporting ADAS, infotainment, and gateway systems, enabling scalable, software-defined vehicle architectures.

In August 2025, Infineon Technologies AG acquired Marvell Technology Inc.’s Automotive Ethernet business for US$2.5 billion. This acquisition strengthens Infineon’s position in automotive semiconductors by expanding expertise in software-defined vehicles, leveraging Marvell’s Automotive Ethernet portfolio, and integrating auto ICs to deliver high-performance connectivity. This move positions Infineon to capture growth opportunities in emerging applications, including physical AI and humanoid robotics, while reinforcing its global market presence.

Major companies operating in the auto integrated circuit (ic) market are Samsung Electronics Co. Ltd., Robert Bosch GmbH, Qualcomm Incorporated, Toshiba Electronic Devices & Storage Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., Micron Technology Inc., Kyocera Corporation, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, Microchip Technology Incorporated, ON Semiconductor Corporation, Vishay Intertechnology Inc., ROHM Co. Ltd., Nexperia B.V., Littelfuse Inc., Wolfspeed Inc., Silicon Labs Inc., ABLIC Inc.

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 integrated circuit market by increasing costs for imported semiconductors and electronic components, leading to supply chain delays and higher production expenses. The passenger vehicle and electric vehicle segments, particularly in North America and Europe, are most affected due to reliance on imported ICs. While tariffs challenge profitability and production timelines, they also encourage local manufacturing, promote innovation in cost-effective IC solutions, and enhance regional supply chain resilience.

The auto integrated circuit (IC) market research report is one of a series of new reports that provides auto integrated circuit (IC) market statistics, including auto integrated circuit (IC) industry global market size, regional shares, competitors with the auto integrated circuit (IC) market share, auto integrated circuit (IC) market segments, market trends, and opportunities, and any further data you may need to thrive in the auto integrated circuit (IC) industry. This auto integrated circuit (IC) 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.

An auto integrated circuit (IC) is a specialized electronic component designed to efficiently manage and control automotive functions. It combines multiple electronic circuits into a single chip to perform tasks such as signal processing, power management, and sensor interfacing. These ICs improve the reliability, performance, and compactness of automotive electronic systems, while enabling precise control, reducing energy consumption, and supporting advanced features including automated diagnostics and adaptive responses to changing operating conditions.

The main types of auto integrated circuits include microcontrollers, power amplifiers, sensor ICs, battery management ICs, and analog ICs. A microcontroller is a compact, self-contained computer on a chip that monitors, processes, and controls vehicle functions. These ICs utilize technologies such as analog, digital, mixed-signal, embedded, and discrete technologies. They are used in various vehicle types, including passenger vehicles, commercial vehicles, electric vehicles (EVs), hybrid electric vehicles (HEVs), and luxury vehicles. Distribution channels include original equipment manufacturers (OEMs), aftermarket suppliers, distributors, online retail, and direct sales. Applications include advanced driver-assistance systems (ADAS), in-vehicle networking, engine management, transmission control systems, and other automotive functions.Asia-Pacific was the largest region in the auto integrated circuit (IC) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the auto integrated circuit (ic) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the auto integrated circuit (ic) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The auto integrated circuit (IC) market consists of revenues earned by entities by providing services such as offering embedded software and firmware support, performing testing and validation for automotive standards, and providing aftermarket support and technical maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The auto integrated circuit (IC) market also includes sales of communication integrated circuits (ICs), memory integrated circuits (ICs), display driver integrated circuits (ICs), lighting integrated circuits (ICs), motor driver integrated circuits (ICs), timing and clock integrated circuits (ICs), audio integrated circuits (ICs), radio frequency (RF) and wireless integrated circuits (ICs). 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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