Automotive Chip Market By Product Type (Microcontrollers, Power Devices, Sensors, Memory Devices, Logic Devices), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (Infotainment & Navigation, ADAS, Powertrain, Electric Vehicle, Safety Systems), By End-User Industry (Automotive OEMs, Automotive Aftermarket, Tier 1 Suppliers), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Automotive Chip Market was valued at USD 66.5 billion in 2023 and will surpass USD 114.0 billion by 2030; growing at a CAGR of 8.0% during 2024 - 2030.

The automotive chip market has experienced significant growth due to increasing demand for advanced technologies, such as electric vehicles (EVs), autonomous driving, and in-vehicle infotainment systems. Chips are essential components in modern vehicles, supporting a wide range of applications from safety features to infotainment and power management systems. The growing trend of vehicle electrification and the introduction of ADAS (Advanced Driver Assistance Systems) have propelled the automotive sector's need for more sophisticated and efficient chips. These technologies are evolving quickly to improve driving experiences, safety standards, and environmental performance. Consequently, the market is expected to continue expanding rapidly, driven by innovation in semiconductor technologies and rising automotive production worldwide.

Microcontrollers (MCU) Segment Is Largest Owing to Its Versatility in Automotive Applications

Microcontrollers (MCUs) dominate the automotive chip market owing to their critical role in powering many vehicle functions, from engine control units to infotainment systems. MCUs are responsible for managing a variety of operations in vehicles, making them essential in both conventional and electric vehicles. In particular, they are crucial in powertrain applications, safety systems, and ADAS, where they enable real-time data processing and communication. These chips' versatility across different applications has made them indispensable in the automotive sector. With the increased focus on fuel efficiency, safety, and user experience, the demand for MCUs continues to rise, securing their place as the largest product type in the market.

The automotive industry’s shift toward more advanced electronic systems, particularly in electric and autonomous vehicles, is expected to further fuel the demand for MCUs. As vehicles become smarter, the number of ECUs (electronic control units) in automobiles grows, increasing the need for MCUs to handle complex tasks. Additionally, with the growing adoption of ADAS features and the integration of infotainment systems, MCUs are required to process large amounts of data with low power consumption, making them indispensable in modern automotive designs.

Passenger Cars Segment Is Largest Owing to High Demand for Advanced Technologies

Passenger cars represent the largest segment of the automotive chip market, driven by high demand for advanced technologies such as infotainment, safety systems, and ADAS. The increasing adoption of connected and autonomous vehicles has led to a significant rise in the number of chips required in passenger cars. Infotainment systems, including navigation, connectivity, and entertainment, as well as driver assistance technologies like automatic emergency braking and adaptive cruise control, all rely on chips to function effectively. The continued growth of electric vehicle production, particularly in the passenger car sector, is also accelerating the demand for chips, as these vehicles require advanced power management and motor control technologies.

The large volume of passenger cars produced each year, especially in developed markets, drives the substantial share of automotive chips consumed by this segment. The rise in vehicle electrification further enhances the demand for chips in passenger cars, as EVs require advanced power management systems and more complex control units to operate efficiently. With consumer preferences shifting toward smarter, safer, and more eco-friendly vehicles, the passenger car segment remains the largest and fastest-growing segment within the automotive chip market.

Infotainment & Navigation Segment Is Fastest Growing Owing to Technological Advancements

The infotainment and navigation segment is the fastest growing application in the automotive chip market, primarily driven by technological advancements and consumer demand for enhanced in-vehicle experiences. Infotainment systems are no longer just about entertainment but have evolved into advanced platforms that integrate navigation, connectivity, voice assistants, and real-time data processing. These systems rely heavily on chips to deliver seamless user experiences, supporting applications such as GPS, streaming services, and cloud connectivity. With the rise of autonomous driving and smart vehicles, infotainment systems are becoming more sophisticated, requiring high-performance chips to handle complex functionalities.

Additionally, the integration of 5G connectivity and improved navigation systems within vehicles is expected to drive the growth of infotainment and navigation chips even further. As automakers incorporate more features like wireless charging, augmented reality dashboards, and advanced media streaming capabilities, the demand for specialized automotive chips will continue to accelerate, making infotainment and navigation the fastest-growing application in the automotive chip market.

Automotive OEMs (Original Equipment Manufacturers) Is Largest End-User Industry Due to High Chip Consumption

Automotive OEMs (Original Equipment Manufacturers) represent the largest end-user industry for automotive chips, as they require a high volume of semiconductors to manufacture vehicles equipped with advanced technology. OEMs integrate chips into various components of a vehicle, including the engine control systems, ADAS, infotainment, and electric powertrains. As automakers continue to push the envelope on vehicle innovation, they are increasingly reliant on chips for both basic and advanced functionalities. With the rising demand for electric and autonomous vehicles, OEMs are expected to maintain a dominant position in the market as they lead the adoption of new technologies that require specialized chips.

The continued evolution of vehicle technology and the increasing complexity of automotive systems drive the consistent demand for chips from OEMs. This segment is expected to remain strong in the coming years, as OEMs invest heavily in next-generation vehicles equipped with the latest infotainment, safety, and driving assistance systems. As a result, automotive OEMs will continue to be the largest consumers of automotive chips, fueling market growth.

Asia-Pacific Region Is Largest Owing to High Vehicle Production and Technological Advancements

The Asia-Pacific region holds the largest share of the automotive chip market, driven by the region’s dominant automotive production capacity and the rapid adoption of new technologies in vehicles. Countries like China, Japan, South Korea, and India are leading automotive producers, and they play a significant role in the development and manufacture of chips for automotive applications. The region’s strong automotive manufacturing base, coupled with increasing demand for electric vehicles and advanced driver assistance systems (ADAS), has fueled the demand for automotive chips. Additionally, Asia-Pacific is home to several key semiconductor manufacturers, making it a critical hub for the automotive chip supply chain.

With a growing focus on the electrification of vehicles and the development of autonomous driving technologies, the Asia-Pacific market is expected to continue expanding rapidly. The presence of major automakers and tier-1 suppliers in this region, as well as ongoing advancements in manufacturing technologies, will ensure that Asia-Pacific remains the largest market for automotive chips.

Competitive Landscape and Leading Companies

The automotive chip market is highly competitive, with leading players such as NXP Semiconductors, Intel Corporation, Qualcomm, STMicroelectronics, and Infineon Technologies at the forefront. These companies are heavily investing in research and development to enhance their product offerings and address the growing demand for semiconductors in electric, autonomous, and connected vehicles. Strategic partnerships, acquisitions, and collaborations are key strategies for these companies to strengthen their market position. For instance, Qualcomm and General Motors formed a partnership to enhance in-vehicle connectivity, while NXP Semiconductors expanded its portfolio with new automotive-grade solutions for EVs and ADAS.

Recent Developments:

• Intel Corporation has announced the expansion of its automotive semiconductor solutions with new microcontroller units (MCUs) targeting autonomous vehicles and advanced safety systems.
• NXP Semiconductors recently acquired Marvell Technology's automotive business to strengthen its position in the electric vehicle semiconductor market.
• Renesas Electronics unveiled a new automotive-grade microcontroller to enhance vehicle electrification and ADAS features in next-generation electric vehicles.
• Infineon Technologies launched a range of power semiconductors designed to increase energy efficiency and reduce the size of automotive powertrains.
• Qualcomm entered a strategic partnership with General Motors to provide next-generation infotainment and connected vehicle chips for their new electric vehicle line-up.

List of Leading Companies:

• Advanced Micro Devices (AMD)
• Analog Devices
• Broadcom Inc.
• Infineon Technologies
• Intel Corporation
• Marvell Technology Group Ltd.
• Microchip Technology
• NXP Semiconductors
• ON Semiconductor
• Qualcomm
• Renesas Electronics Corporation
• Samsung Electronics
• STMicroelectronics
• Texas Instruments
• Toshiba Corporation

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