Automotive Semiconductor Market Poised to hit USD$ 119.8 billion by 2032 |

Automotive Semiconductor Market Forecast 2032 | EV & Autonomous Vehicles

AUSTIN, TX, UNITED STATES, January 20, 2026 /EINPresswire.com/ -- Market Size and Growth

According to DataM Intelligence, the Global Automotive Semiconductor Market is projected to grow from USD 44.7 billion in 2024 to USD 119.8 billion by 2032, registering a robust CAGR of 12.2% during 2025–2032. The accelerating demand for advanced driver assistance systems (ADAS), electric vehicles (EVs), vehicle electrification, and connected car technologies is fueling semiconductor adoption in the automotive sector.

Increasing integration of microcontrollers, sensors, power semiconductors, and infotainment chips is transforming vehicle architectures toward smart, efficient, and safer driving experiences. Innovations in AI-based vehicle controls, V2X communication, and autonomous driving are driving semiconductor market expansion globally.

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Growth Drivers

1. Electric Vehicle (EV) Production is expected to exceed 40 million units by 2030, creating massive demand for power management and battery control ICs.

2. ADAS & Autonomous Vehicles penetration rising over 30% of new vehicles by 2032, boosting demand for image sensors, radar, and LiDAR semiconductors.

3. Government Regulations on emissions and safety standards globally incentivize semiconductor adoption for engine control and safety features.

4. Connected Cars & IoT Integration push the need for advanced communication and telematics chips.

5. Miniaturization & Power Efficiency trends drive innovation in semiconductor design to meet automotive reliability and thermal standards.

Market Segmentation Analysis

By Component

Microcontrollers & Processors dominate with 35% share (USD 16 billion in 2024), powering infotainment, control units, and ADAS systems. Expected to reach USD 45 billion by 2032.

Power Semiconductors hold 28% share (USD 12.8 billion), critical for EV battery management and drive inverters, projected to grow to USD 38 billion by 2032.

Sensors account for 20% share (USD 9.1 billion), including LiDAR, radar, and imaging sensors for autonomous vehicles, forecasted to exceed USD 28 billion.

Memory Chips represent 10%, supporting data storage in connected cars, growing at 11.5% CAGR.

Others (discrete components, analog ICs) make up the remaining 7%.

By Vehicle Type

Passenger Cars represent 65% of the market (USD 30 billion in 2024), with rapid EV penetration and luxury vehicle ADAS adoption driving growth.

Commercial Vehicles contribute 25% (USD 11.4 billion), growing due to electrification of trucks and fleet management systems.

Two-Wheelers & Others hold 10%, with increasing demand for safety and telematics in emerging markets.

By Application

Powertrain Electronics lead with 40% share, addressing engine control, emission reduction, and EV power management.

Safety & ADAS Systems hold 30%, driven by autonomous braking, lane assist, and adaptive cruise control technologies.

Infotainment & Connectivity capture 20%, including dashboard displays, telematics, and in-car entertainment.

Body Electronics & Others account for 10%, including lighting, HVAC control, and smart key systems.

By Region

Asia-Pacific dominates with 45% market share (USD 20.5 billion in 2024), led by China, Japan, South Korea, and India’s expanding EV production and semiconductor manufacturing ecosystems.

North America holds 30% (USD 13.7 billion), driven by US and Canadian adoption of EVs and connected vehicle technologies.

Europe contributes 20%, propelled by stringent emission regulations and rapid EV adoption in Germany, France, and Scandinavia.

Rest of the World accounts for 5%, with emerging markets adopting automotive technologies.

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Regional Insights

Asia-Pacific

Market valued at USD 20.5 billion in 2024, expected to reach USD 56.4 billion by 2032, growing at a CAGR of 13.8%.

China leads with aggressive EV subsidies and local semiconductor manufacturing investments.

Japan and South Korea focus on high-precision sensors and microcontrollers for luxury and autonomous vehicles.

India’s emerging EV market drives demand for cost-effective automotive chips.

North America

Market size of USD 13.7 billion in 2024, projected to grow to USD 36.1 billion by 2032.

US government incentives and infrastructure for EVs accelerate semiconductor demand.

Tech hubs in Silicon Valley lead innovations in vehicle connectivity and autonomous driving chips.

Canada focuses on electric commercial vehicle semiconductor integration.

Europe

Market valued at USD 9.1 billion in 2024, forecasted to reach USD 24 billion by 2032.

Strong emission norms (Euro 7) drive powertrain semiconductor demand.

Germany and France invest heavily in ADAS and electric vehicle platforms.

Growing collaboration between automakers and semiconductor companies for next-gen chips.

Competitive Landscape

The automotive semiconductor market is moderately consolidated with global chipmakers competing to expand portfolios tailored for automotive specifications.

Key Players

1. NVIDIA Corporation (ADAS and AI processors)

2. Infineon Technologies AG (power semiconductors and sensors)

3. Texas Instruments Inc. (analog and embedded processors)

4. NXP Semiconductors NV (vehicle networking and security chips)

5. STMicroelectronics (sensors and power management ICs)

6. Renesas Electronics Corporation (microcontrollers and system-on-chips)

7. ON Semiconductor (power devices and image sensors)

8. Qualcomm Incorporated (connectivity and telematics chips)

9. Toshiba Corporation

10. Robert Bosch GmbH

11. Micron Technology

12. Onsemi (Semiconductor Components Industries LLC)

13. Analog Devices Inc.

Key Highlights

NVIDIA reported 22% YoY revenue growth in automotive AI processors in 2024.

Infineon expanded its power semiconductor plant capacity in Malaysia and Germany in 2025.

Texas Instruments introduced new automotive-grade microcontrollers with extended temperature tolerance.

NXP partnered with automotive OEMs to deliver secure vehicle communication modules.

STMicroelectronics launched advanced LiDAR sensors for autonomous vehicles in early 2025.

Recent Developments

NVIDIA unveiled DRIVE Thor, an integrated chip platform for autonomous and connected vehicles (April 2025).

Infineon announced a joint venture with a Chinese EV manufacturer to develop power modules (February 2025).

Texas Instruments launched a new line of automotive-grade analog ICs focused on safety-critical applications (January 2025).

NXP introduced secure vehicle-to-everything (V2X) communication chips for 5G networks (March 2025).

Renesas expanded its automotive microcontroller portfolio with AI-enabled chips targeting ADAS (December 2024).

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Market Outlook and Opportunities

Powertrain semiconductor demand to grow to USD 48 billion by 2032, driven by EV and hybrid vehicle production.

ADAS semiconductor market expected to surpass USD 36 billion by 2032 as autonomous features become standard.

Connected car and infotainment semiconductors to reach USD 24 billion with increasing in-vehicle digitalization.

Asia-Pacific to remain fastest-growing region, supported by EV adoption and local semiconductor manufacturing.

Integration of AI and machine learning in automotive chips to unlock USD 15 billion in new value streams.

Rising demand for silicon carbide (SiC) and gallium nitride (GaN) semiconductors in EVs to fuel innovation.

Conclusion

The Global Automotive Semiconductor Market is on a strong growth trajectory, This expansion is powered by the transition to electric, connected, and autonomous vehicles worldwide.

Leading semiconductor manufacturers such as NVIDIA, Infineon, and Texas Instruments are driving innovation in power management, sensing, and AI computing, enabling next-generation automotive technologies. With increasing regulatory mandates, consumer demand for safety, and the digital transformation of vehicles, automotive semiconductors will remain a cornerstone of the future mobility ecosystem.

Related Reports:

Integrated Circuits Market

Automotive Power Electronics Market

Sai Kiran
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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