Automotive Semiconductor Market worth $133.05 billion by 2030 – Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., Nov. 4, 2025 /PRNewswire/ — The automotive semiconductor market is expected to be valued at USD 77.42 billion in 2025 and USD 133.05 billion by 2030, growing at a CAGR of 11.4% from 2025 to 2030 according to a new report by MarketsandMarkets™. Key drivers for the automotive semiconductor market include the growing adoption of electric and hybrid vehicles, increasing integration of ADAS and autonomous driving technologies, and rising demand for connected and software-defined vehicles. Semiconductors enable efficient power conversion, intelligent sensing, and real-time data processing across vehicle systems. Advancements in SiC and GaN materials and stringent safety and emission regulations further accelerate innovation, positioning semiconductors as critical enablers of efficiency, safety, and sustainability in modern mobility.

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Automotive Semiconductor Market Scope:

Sensors segment is expected to register the highest CAGR between 2025 and 2030.

By component, the sensors segment is projected to record the highest CAGR in the automotive semiconductor market during the forecast period, driven by the growing adoption of advanced driver-assistance systems (ADAS), autonomous driving technologies, and connected vehicle applications. Sensors are critical in enabling vehicles to perceive and interpret their surroundings, supporting real-time decision-making, collision avoidance, and enhanced passenger safety. The increasing deployment of radar, LiDAR, ultrasonic, and image sensors in next-generation vehicles transforms automotive architectures toward greater intelligence and automation. In electric and hybrid vehicles, sensors are essential for monitoring battery performance, thermal management, and energy efficiency. Additionally, advancements in microelectromechanical systems (MEMS) and the miniaturization of sensing components improve accuracy, reliability, and integration into compact designs. The growing trend of software-defined and connected vehicles further amplifies sensor demand for continuous data collection and analytics. Leading semiconductor manufacturers invest in sensor fusion technologies, edge processing, and AI-enabled sensing platforms to meet evolving automotive requirements. As safety regulations tighten and autonomous driving development accelerates, sensors will remain indispensable in driving innovation, efficiency, and safety across the global automotive semiconductor landscape.

Internal combustion engine (ICE) segment is likely to account for the largest market share in 2030.

In terms of propulsion type, the internal combustion engine (ICE) segment is expected to hold the largest market share in the automotive semiconductor market by 2030, owing to the continued dominance of conventional vehicles across emerging and developing economies. Despite the rapid shift toward electrification, ICE-powered vehicles remain prevalent due to their cost-effectiveness, established fueling infrastructure, and technological maturity. Semiconductors are vital in enhancing performance, fuel efficiency, and emissions control of ICE vehicles through advanced engine management systems, powertrain control units, and exhaust after-treatment technologies. Increasing regulatory pressure to reduce CO2 emissions has prompted automakers to integrate intelligent sensors, microcontrollers, and power devices to optimize combustion efficiency and meet stringent environmental standards. Moreover, the integration of ADAS, infotainment, and connectivity features in modern ICE vehicles continues to expand semiconductor content per vehicle. Continuous advancements in miniaturization, power electronics, and data processing further enhance vehicle reliability and performance. As global markets transition toward hybrid and electric mobility, ICE vehicles are expected to maintain a significant share in the near term, driven by sustained demand across Asia Pacific, the Middle East, and parts of Europe.

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Asia Pacific is likely to account for the largest share of the automotive semiconductor industry in 2030.

Asia Pacific is expected to capture the largest market share in 2030, driven by the strong automotive manufacturing base, rapid electrification, and expanding semiconductor production capabilities. Countries such as China, Japan, South Korea, and India are leading automotive hubs, supported by large-scale investments in electric vehicles (EVs), advanced driver-assistance systems (ADAS), and connected mobility solutions. China continues to dominate EV production and battery innovation, while Japan and South Korea are at the forefront of sensor, power device, and microcontroller development for next-generation vehicles. India’s growing automotive ecosystem and favorable government initiatives, such as ‘Make in India’ and local chip manufacturing incentives, further strengthen regional growth prospects. The increasing adoption of software-defined and autonomous vehicles across major markets accelerates the demand for high-performance semiconductors that enable efficient power management, real-time data processing, and enhanced vehicle safety. Moreover, strong collaboration between automotive OEMs and semiconductor suppliers and ongoing investments in R&D and wafer fabrication facilities reinforce the region’s leadership in the global automotive semiconductor landscape. The integrated supply chain and focus on innovation position as the key growth engine for the industry through 2030.

The report profiles key players in automotive semiconductor companies such as Infineon Technologies AG (Germany), NXP Semiconductors (Netherlands), STMicroelectronics (Switzerland), Texas Instruments Incorporated (US), Renesas Electronics Corporation (Japan), Semiconductor Components Industries, LLC (US), Robert Bosch GmbH (Germany), Qualcomm Technologies, Inc. (US), Analog Devices, Inc. (US), and Microchip Technology Inc. (US). These players have adopted various organic and inorganic growth strategies, such as product launches, collaborations, partnerships, expansions, and acquisitions.

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