Automotive Chip Market Is Expected To Reach a Revenue Of USD 153.0 Bn By 2033, At 11.1% CAGR: Dimension Market Research

The automotive chip market is transforming with higher demand for advanced technologies such as electric vehicles, autonomous driving, and connectivity. Major players drive innovation while emerging companies aim for niche applications.

New York, Oct. 07, 2024 (GLOBE NEWSWIRE) — Overview:

The Automotive Chip Market size is expected to reach USD 59.3 billion by 2024 and is further anticipated to reach USD 153.0 billion by 2033 according to Dimension Market Research. The market is anticipated to register a CAGR of 11.1% from 2024 to 2033.

The automobile chips are essential parts that make it possible to use features like safety, entertainment, and autonomous driving. The demand for sensors, processors, and other semiconductor components has grown due to the rising popularity of Advanced Driver Assistance Systems (ADAS). Power electronics and Battery management systems are now important due to the rise of EVs.

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The US Overview

The Automotive Chip Market in the US is projected to reach USD 23.6 billion in 2024 at a compound annual growth rate of 10.4% over its forecast period.

In the US, the automotive chip market benefits from the growing EV sector, development in autonomous driving, and growth in demand for connected vehicles. Government incentives & investments in smart infrastructure promote growth.

Despite challenges like supply chain disruptions and high development costs, strong U.S. semiconductor innovation and R&D capabilities position the country for market leadership and sustained growth.

Important Insights

• The Automotive Chip Market is expected to grow by USD 87.8 billion by 2033 from 2024 with a CAGR of 11.1%.
• The microcontroller as a product segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.

• The passenger vehicle segment is expected to dominate the Automotive Chip market in 2024.
• The safety segment is anticipated to get the largest revenue share in 2024 in the Automotive Chip market.
• North America is predicted to have a 46.4% share of revenue share in the Global Automotive Chip Market in 2024.

Global Automotive Chip Market: Trends

• Integration of AI: Increasing use of artificial intelligence and machine learning for enhanced driver assistance and autonomous driving capabilities.
• 5G Connectivity: Adoption of 5G technology for faster and more reliable vehicle-to-vehicle and vehicle-to-infrastructure communication.
• System-on-Chip (SoC) Solutions: There is a growing preference for integrated SoC solutions that combine multiple functionalities into a single chip to reduce complexity and costs.
• Focus on Cybersecurity: Better focus on developing secure chips to protect against cyber threats and ensure vehicle safety and data integrity.

Automotive Chip Market: Competitive Landscape

The automotive chip market features both established semiconductor giants and innovative startups. Leading firms drive development in electric vehicles, autonomous driving, and connectivity with their advanced technologies & large-scale production. Emerging players focus on niche markets with AI & IoT innovations.

Further, intense competition fuels rapid technological evolution, while companies navigate supply chain issues and regulatory challenges, often through strategic partnerships and acquisitions.

Some of the major players in the market include NXP Semiconductors, Infineon Technologies AG, Robert Bosch, NVIDIA Corp, Texas Instruments, Renesas Electronics Corporation, and more.

Some of the prominent market players:

• NXP Semiconductors
• Infineon Technologies AG
• Robert Bosch
• NVIDIA Corp
• Texas Instruments
• Renesas Electronics Corporation
• STMicroelectronics
• Toshiba Corporation
• Analog Devices
• Other Key Players

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Automotive Chip Market Scope

Report Highlights	Details
Market Size (2024)	USD 59.3 Bn
Forecast Value (2033)	USD 153.0 Bn
CAGR (2024-2033)	11.1%
The US Market Size (2024)	USD 23.6 Bn
Leading Region in terms of Revenue  Share	North America
Percentage of Revenue Share by Leading Region	46.4%
Historical Data	2018 – 2023
Forecast Data	2025 – 2033
Base Year	2023
Estimate Year	2024
Segments Covered	By Product, By Propulsion, By Vehicle Type, and By Application
Regional Coverage	North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)

Segment Analysis:

The automotive chip market is segmented by propulsion types: Internal Combustion Engines (ICE), Battery Electric Vehicles (BEVs), and Hybrid Electric Vehicles (HEVs). The ICE segment is set to be dominant in 2024 due to its established infrastructure and broad use.

Further, BEVs are experiencing faster growth due to development in high-efficiency power modules that improves driving range and recharge times. While ICE vehicles maintain a significant market share, BEVs and HEVs are rapidly expanding due to technological progress and increasing consumer preference for sustainable, efficient transportation options.

Automotive Chip Market Segmentation

By Product

• Microcontrollers
• Logic ICs
• Sensor
• Analog ICs
• Others

 By Propulsion

• ICE
• BEVs
• HEVs

By Vehicle Type

• Passenger
• Commercial

By Application

• Safety
• Powertrain
• Chassis
• Telematics & Infotainment
• Body Electronics
• Others

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Global Automotive Chip Market: Driver

• Electrification: Growing demand for electric vehicles (EVs) boosts the need for advanced chips for battery management, power control, and charging systems.
• Advanced Driver Assistance Systems (ADAS): The high adoption rate of ADAS and autonomous driving technologies drives the demand for high-performance semiconductor solutions.
• Connectivity: The integration of IoT and connectivity in vehicles, such as infotainment systems and telematics, enhances the demand for automotive chips.
• Vehicle Electrification and Efficiency: Current advancements in vehicle powertrain technologies and energy efficiency demands are fueling the demand for specialized automotive chips.

Global Automotive Chip Market: Restraints

• Supply Chain Disruptions: Issues related to semiconductor supply chains can lead to shortages and delays in chip availability.
• High Development Costs: The cost of developing & integrating advanced chips into vehicles can be significant, impacting profitability & market entry.
• Regulatory Challenges: Strict regulations & safety standards for automotive electronics can complicate development & compliance processes.
• Rapid Technological Changes: The rapid pace of technological development requires constant updates and adaptations, which can be challenging for manufacturers.

Global Automotive Chip Market: Opportunities

• Growth in EVs: The expansion of electric vehicles offers opportunities for developing specialized chips for battery management and powertrain systems.
• ADAS Expansion: Increasing demand for advanced driver assistance systems (ADAS) creates opportunities for chips that support autonomous driving and safety features.
• Vehicle-to-Everything (V2X) Communication: The rise of V2X technology for better vehicle communication & safety opens up new markets for connectivity chips.
• In-Car Entertainment: The rising interest in specialized in-car infotainment systems provides opportunities for chips that improve multimedia and connectivity experiences.

Regional Analysis

North America is expected to lead the automotive chip market with a 46.4% share in 2024, driven by its strong automotive & semiconductor industries. Early adoption of electric vehicles (EVs) and autonomous driving technologies, along with supportive government initiatives and strict safety regulations, fuels demand.

Further, Europe holds the second-biggest share, driven by its focus on sustainable mobility and strict emission standards, with Germany leading and the UK showing rapid growth. Moreover, Asia-Pacific region, led by China, is set for rapid expansion due to urbanization, rising incomes, and a large consumer base, with India growing the fastest.

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By Region

North America

• The U.S.
• Canada

Europe

• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America

Middle East & Africa

• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA

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Recent Developments in the Automotive Chip Market

• March 2024: Arm Holdings Ltd. launched the safety-enabled Arm Automotive Enhanced range with Armv9, providing server-class AI performance and cutting development time for AI-powered vehicle experiences by up to two years.
• March 2024: Hyundai Motor is developing 5nm automotive semiconductors to ensure a stable chip supply for software-driven vehicles, with plans to use these chips for ADAS.
• January 2024: Intel launched AI-enabled automotive chips, entering the market to compete with Qualcomm and NVIDIA, as the company also plans to acquire French startup Silicon Mobility for EV tech.
• January 2024: Texas Instruments launched new automotive semiconductors: the AWR2544 radar sensor for advanced ADAS and DRV3946-Q1 and DRV3901-Q1 driver chips with diagnostics and functional safety features.
• June 2023: Stellantis and Hon Hai Technology Group created SiliconAuto, a joint venture to develop advanced automotive semiconductors. Starting in 2026, it combines Foxconn’s ICT expertise with Stellantis’ mobility insights.

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