Global automotive semiconductor market trends and growth prospects 2025-2030

Automotive Semiconductor Market by Discrete Power Device, Analog IC, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), Internal Combustion Engine (ICE), Electric, Powertrain and ADAS & Autonomous Driving -- Global Forecast to 2030, has been added to ResearchAndMarkets.com's offering.

The automotive semiconductor market is expected to expand significantly, growing from USD 77.42 billion in 2025 to USD 133.05 billion by 2030, at a CAGR of 11.4%. This growth is driven by the rapid transition toward vehicle electrification, the increasing integration of advanced driver-assistance systems (ADAS), and the rise of connected, software-defined vehicles.

With growing semiconductor content per vehicle and innovations in silicon carbide (SiC) and gallium nitride (GaN) technologies, energy efficiency, safety, and performance are being enhanced. The expansion of electric vehicle (EV) production, adoption of autonomous features, and governmental support for sustainable mobility further stimulate this market. However, supply chain disruptions and high production costs remain significant challenges, spotlighting the need for collaboration, localization, and innovative strategies to maintain competitiveness.

This report segments the automotive semiconductor market, forecasting its size by component, vehicle type, propulsion type, application, and region. It also provides a comprehensive review of the drivers, restraints, opportunities, and challenges affecting market growth, alongside both quantitative and qualitative analysis.

The market features major players with significant global influence, such as Infineon Technologies AG (Germany), NXP Semiconductors (Netherlands), STMicroelectronics (Switzerland), Texas Instruments Incorporated (US), and Renesas Electronics Corporation (Japan).

By propulsion type, electric segment is anticipated to register highest CAGR between 2025 and 2030
The electric segment is projected to exhibit the highest CAGR during the forecast period, fueled by the worldwide pivot to clean mobility and stringent emissions regulations. Semiconductors are pivotal in EVs for efficient power conversion, battery management, and energy optimization across their systems.

Power devices based on SiC and GaN materials are increasingly prevalent for superior switching efficiency, thermal performance, and compact design, which support greater driving ranges and faster charging.

Advanced sensors, microcontrollers, and communication chips further enhance safety, connectivity, and real-time control within electric powertrains. The increasing deployment of ADAS, vehicle-to-everything (V2X) communication, and intelligent thermal management systems is also augmenting semiconductor content in EVs.

Moreover, government incentives, infrastructure investments, and the expansion of gigafactories in the Asia Pacific, Europe, and North America are bolstering the EV semiconductor supply chain. Automakers investing in software-defined and autonomous EV architectures underscore semiconductor innovations as central to sustainable, efficient, high-performance electric mobility worldwide.

Based on application, powertrain segment is forecast to command largest market share in 2030
The powertrain segment is set to dominate the market by 2030, spurred by the shift to vehicle electrification and advanced control technologies. This growth is underpinned by the increasing use of semiconductors in engine management, transmission control units, battery management systems (BMS), and electric drive modules, delivering better efficiency, lower emissions, and enhanced performance.

Rising adoption of electric and hybrid vehicles drives demand for power semiconductors like SiC and GaN devices, which accommodate higher voltage operations, faster switching, and better thermal performance. Automakers are focusing on smart powertrain architectures that integrate real-time monitoring, predictive maintenance, and energy optimization features, thereby increasing semiconductor content per vehicle.

The growth of 800 V vehicle platforms and modular power electronics solutions further contribute to the prominence of semiconductor solutions in powertrain applications. As a result, the powertrain segment remains a key revenue driver, with semiconductor suppliers heavily investing in material innovation and high-efficiency designs to meet OEMs' evolving needs.

Europe is projected to show second-highest CAGR from 2025 to 2030
The European market is expected to exhibit the second-highest growth, driven by robust developments in electric mobility, vehicle safety technologies, and digital transformation within the automotive sector. The region's leading automakers and Tier-1 suppliers are accelerating semiconductor adoption for electrification, ADAS, and connectivity applications.

The production of electric and hybrid vehicles is bolstered by strict CO2 emissions regulations and the European Green Deal, which enhances demand for power semiconductors, sensors, and microcontrollers. Germany, France, and the Netherlands spearhead innovation with government support for EV infrastructure and autonomous driving trials.

Collaborations between chipmakers and automotive OEMs foster localized supply chains, and next-generation electronic/electrical architectures, solidifying Europe's position as a technological innovation hub and contributor to sustainable growth globally.