Increasing Technological Advancement in the Automotive Industry Globally Contributes to Market Growth

Published: Apr 2024

Global automotive semiconductor market is anticipated to grow at a significant CAGR of 14.9% during the forecast period (2024-2031). The market growth is attributed to the growing adoption of advanced technologies with the increasing demand for electronic control units (ECU) in modern vehicles drives the growth of the market. In the automotive industry, semiconductors are utilized for regulating emissions, optimizing ignition timing, analyzing data from pressure and temperature sensors, and modifying fuel injection for optimal combustion. For instance, in August 2023, Hyundai Motor Group made a strategic investment in Tenstorrent to integrate AI into future Hyundai, Kia, and Genesis vehicles, and other future mobilities. The Group expects to leverage Tenstorrent’s high-performance technologies and experience to jointly develop optimized semiconductors while strengthening its technological capabilities. A combined $50.0 million from Hyundai Motor and Kia to accelerate Tenstorrent’s design and development of AI chipsets and its machine-learning software roadmap. 

Browse the full report description of “Automotive Semiconductor Market Size, Share & Trends Analysis Report by Component (Processor Analog IC, Discrete Power Device, Sensor, Memory, and Lighting Device), byVehicle Type (Passenger Car, LCV, and HCV), and by Application (Powertrain, Safety, Body Electronics, Chassis, Telematics, and Infotainment)Forecast Period (2024-2031)” at https://www.omrglobal.com/industry-reports/automotive-semiconductor-market

The essential components of modern electronics are semiconductors. These substances have the special capacity to control electrical current flow, which makes them indispensable part of electric vehicle. For instance, in June 2023, Stellantis N.V. and Hon Hai Technology Group collaborated to design and sell a family of state-of-the-art semiconductors to supply the automotive industry, including Stellantis, starting in 2026. SiliconAuto will provide customers with an auto industry-centric source of semiconductors for the growing number of computer-controlled features and modules, particularly those needed for electric vehicles.

All of the latest advancements in driver aid technologies, such as infotainment systems, navigation systems, adaptive cruise control, and rear cameras, depend on semiconductors to connect with the onboard displays. For instance, in July 2021, Renesas Electronics Corp. advanced semiconductor solutions introduced R-Car Gen3e With Up to 20.0% Higher CPU Speed for automotive infotainment, cockpit, and digital cluster systems. The new devices extend the successful R-Car Gen3 SoC products with increased CPU performance up to 50k DMIPS and 2GHz speeds to help carmakers navigate demands for continuous user experience, security, and safety improvements.

Market Coverage

The market number available for – 2023-2031

Base year- 2023

Forecast period- 2024-2031

Segment Covered- 

o By Component

o By Vehicle Type

o By Application

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape- Intel Corp., Mitsubishi Electric Corp., NVIDIA Corp., Renesas Electronics Corp., and Toshiba Corp. among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global Automotive Semiconductor Market Report Segment

By Component

  • Processor Analog IC
  • Discrete Power Device
  • Sensor
  • Memory
  • Lighting Device

By Vehicle Type

  • Passenger Car 
  • LCV
  • HCV

By Application

  • Powertrain 
  • Safety
  • Body Electronics
  • Chassis
  • Telematics and Infotainment

Global Automotive Semiconductor Market Report Segment by Region

North America

United States

Canada 

Europe

UK

Germany

Italy

Spain

France

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East & Africa


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