Automotive Chip Market Size, Share & Trends Analysis Report By Type (Microcontrollers & Microprocessors, Logic ICs), By Vehicle (Passenger, Commercial), By Application, By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global automotive chips market was valued at USD 41.47 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 11.2% from 2024 to 2030. Unceasing innovation backed by enhanced research & development has generated multiple changes and technological advancements in the automotive industry. Performance improvements, fuel efficiency, sustainability, reduced carbon footprint, growing inclination towards the use of electric vehicles, supportive government initiatives, and other automotive industry requirements are expected to increase demand for this market during the forecast period.

Additionally, factors such as the growing inclusion of cutting-edge technology and advanced engineering expertise related to control and monitoring, infotainment systems, and enhanced safety structures in automotive industry offerings have contributed to the growth of this market in recent years. Moreover, increasing consumer demand for advanced technology-assisted tools and systems such as advanced driver assistance systems, automotive infotainment, electric vehicles, automated emergency braking, collision warnings, automatic parking assistance, and others are fueling the industry's growth. Enhanced road infrastructures in multiple regions and growing disposable income levels have increased demand for passenger cars and other automotive products, fueling growth for this market.

Electrification, connectivity, mobility as a service, advanced safety features added during manufacturing, sustainability goals, and self-driving are some of the automotive industry trends expected to influence the automotive chip market during the forecast period. Emerging technologies such as 3D printing and immersive experiences generated through augmented reality or virtual reality have also influenced manufacturing and consumer preferences in the automotive sector, which is anticipated to propel demand for innovation-based solutions in the approaching years.

Type Insights

The microcontrollers and microprocessors segment dominated the market and accounted for a market share of 45.8% in 2023. Growth of this segment is primarily driven by factors such as growing inclination towards the adoption of electric vehicles and hybrid electric vehicles, rising complexities in the car functionalities due to the inclusion of advanced technology-driven systems such as ADAS, increasing trend of car connectivity, and installations such as infotainment systems. Growth in demanding computations and requirements related to real-time data processing are expected to drive growth for this market from 2024 to 2030.

The logic ICs segment is expected to experience the fastest CAGR during the forecast period. Logic ICs, or integrated circuits, perform basic logic-based operations stimulated through digital signal inputs and deliver digital output signals. The inclusion of advanced technology tools and the emergence of Artificial Intelligence and Machine Learning have developed a need for powerful and enhanced semiconductors that can work on multiple logic inputs. These microchips have experienced increased demand due to the adoption of numerous progressive technologies in passenger and commercial car development.

Vehicle Insights

The passenger vehicles segment accounted for the largest revenue share in 2023. Modern passenger cars entail nearly 1000 to 3000 semiconductor chips in its body, which assists the vehicle and driver in multiple functions and ensures smooth processing and operations. From fuel availability to tire pressure monitoring, almost every alert and warning related to performance, efficiency, and necessities is linked to these automotive chips. Growing inclusion of innovation-based technologies, demand for novel tools and systems that can reduce human involvements and errors, changing consumer preferences and inclination towards availability of assistance in areas such as vehicle control, airbag triggering, collision warning, automatic parking, and more are expected to develop growth for automotive chips used in passenger cars during next few years.

The commercial vehicles segment is anticipated to experience the fastest CAGR over the forecast period. Rising safety concerns have inclined consumer preference towards commercial vehicles. This segment focuses on adopting telematics solutions for route optimization, real-time tracking, and other advanced features. Growing connected devices enables anticipation of maintenance needs and data utilization for managing fleets. This connection relies on strong communication chips and onboard computers.

Application Insights

The body electronics segment accounted for the largest market share in 2023. Automotive body electronics assists the vehicles and users in multiple areas including power distribution, motor control, module control, seat control, roof control, in-cabin charging, windshield wiper control, door windows and door control, light control and contribute towards enhancement of overall comfort. The increasing demand for tools and assistance related to these functions in passenger and commercial vehicles is expected to generate growth for this segment in the next few years.

The safety segment is anticipated to experience the fastest CAGR over the forecast period. Unceasing growth in road accidents, incidents related to fatal consequences, malfunctions and failures due to unexpected ruptures during drives have developed alarming need for enhanced safety features. In addition, in terms of commercial vehicles, almost every business and user has inclined towards connectivity control and monitoring through tools such as dash cams, GPS, navigation assistance, speed control and more. To avoid catastrophic incidents, manufacturers are increasingly including advanced safety features during the process of design and development. These aspects are expected to drive growth for this segment from 2024 to 2030.

Regional Insights & Trends

Asia Pacific automotive chip market dominated the market  with a revenue share of 43.2% in 2023. Growth of this market is primarily driven by increasing demand for technologically advanced passenger cars and commercial vehicles, growing adoption of electric vehicles, and a rise in enhancements related to public infrastructures in countries such as India, including roads, tunnels, bridges, and more. In addition, the growing accessibility and availability of multiple cars and vehicles offered by numerous companies from regions such as North America and Europe have influenced the growth of this market. Furthermore, technology advancements adopted by manufacturers in the regional market, from countries such as Japan, India, and South Korea, have been driving demand for the automotive chips market.

China automotive chip market held a significant revenue share of the regional industry in 2023. This market is mainly driven by the presence of multiple semiconductor manufacturers, the availability of skilled professionals and the necessary technical expertise for developing advanced microchips, the rapidly growing electric vehicle market, and the growing demand for smart vehicle solutions.

Europe Automotive Chip Market Trends

Europe automotive chip market was identified as a lucrative region in 2023. The growth of this regional industry is mainly influenced by the factors such as increasing demand for electric vehicles, growing availability of smart vehicles, enhanced expenditure on passenger cars by consumers, increasing inclination towards inclusion of comfort and safety features driven with the help of powerful semiconductors, and others. Increased awareness about sustainability, growing concerns regarding fuel efficiency and performance excellence and changing customer preferences are expected to generate greater growth for this market during forecast period.

Germany automotive chip market is expected to experience significant growth from 2024 to 2030. This is attributed to presence of multiple auto industry manufacturers, unending research & development performed in the region’s automotive industry leading to innovation, and growing demand for integration of multiple technology to offer additional benefits to the users such as fuel efficiency, control assistance, risk reduction, safety assurance, and improved performance.

Latin America Automotive Chip Market Trends

Latin America automotive chip market is expected to experience the fastest CAGR during forecast period. The emergence of advanced driver assistance systems, connected vehicles, and the growing need for controlling and monitoring commercial vehicles drives this market. Enhancements in infrastructure and growing inclination towards electric and hybrid electric vehicles are also anticipated to develop greater demand for this market in the approaching years.

Brazil automotive chip market held significant revenue share of the regional industry in 2023. An increase in demand for enhanced safety features protected by robust technology-backed systems and connectivity features has developed growth for semiconductors in this market. Increasing inclusion of ADAS, body electronics technologies, energy efficiency solutions, and infotainment systems are projected to increase demand for automotive microchips in this market during the forecast period.

Key Company & Market Share

Some of the key companies operating in the automotive chip market include Qualcomm Technologies, Inc., STMicroelectronics, Texas Instruments Incorporated, NXP Semiconductors, Renesas Electronics Corporation, and others. To address growing competition in the design and development of semiconductors used in the automotive industry, manufacturers from the automotive and microchip sectors are adopting strategies such as continuous research and development, innovation, technology exchange, or enhancements through mergers, acquisitions, collaborations, and partnerships.

• Qualcomm Technologies, Inc., one of the prominent organizations in the technology and innovation industry, develops multiple offerings. Its products are extensively utilized in smartphones, laptops & tablets, wearables, appliances, home security, automation, lighting, smart fitness, smart audio, Bluetooth technology, automotive cockpits, car-to-cloud technology, ADSD, retail & payments, logistics and tracking, cellular networks, enterprise networks, cameras, smart speakers, robotics and more. Some of its automotive industry offerings include QCA6678AQ 802.11ax MIMO single-MAC solution, QCA6595AU Wi-Fi 5 / BT5.1 Automotive Dual-MAC Combo Chip, CSR8350, and others.

• STMicroelectronics, a multinational company in the technology excellence industry, develops and delivers advanced semiconductor technology. The company’s expertise includes every value chain element, from continuous R&D, design, and manufacturing of the chips to sales and support. The portfolio of the company consists of offerings related to amplifiers and comparators, automotive ADAS devices, audio ICs, automotive logic ICs, automotive microcontrollers, clocks & timers, data converters, microprocessors, motor drivers, imaging solutions, power transistors, EMI filters, touch controllers, wireless connectivity and more. Its automotive logic ICs portfolio includes quad and hexadecimal bus buffers, 14-stage binary counters and oscillators, flip-flops, latches, and others.

Recent Developments

• In January 2024, Texas Instruments Incorporated introduced new semiconductors developed to enhance the automotive safety and intelligence. The newly introduced product of the company is designed to ensure efficient and safe control of power flow in the battery management functions.

• In March 2024, Sony Semiconductor Solutions Corporation, one of the major market participants in the semiconductors industry, announced that it has begun using several production lines in the newly developed facility of Sony Device Technology (Thailand) Co., Ltd. in Thailand from February 2024. The newly built facility is designed to assemble image sensors used in automotive applications.

Automotive Chip Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the automotive chip market report based on type, vehicle, application, and region. 

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Analog ICs

  • Microcontrollers & Microprocessors

  • Logic ICs

• Vehicle Outlook (Revenue, USD Billion, 2018 - 2030)

  • Passenger Vehicles

  • Commercial Vehicles

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Chassis

  • Powertrain

  • Safety

  • Telematics & Infotainment

  • Body Electronics

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • South Arabia

    • UAE

    • South Africa