Automotive Chip Market Size, Innovations & Dynamics

Automotive Chip Market Competitive Positioning & Growth Opportunities

The automotive chip market is expected to increase from USD 51.35 billion in 2025 to USD 133.94 billion by 2034, growing at a CAGR of 11.24% throughout the forecast period from 2025 to 2034.

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Introduction

The automotive chip market is a crucial sector of the automotive components industry. This industry deals in manufacturing and distribution of advanced chips for automotives. There are numerous types of chips developed in this industry comprising of analog ICs, microcontrollers & microprocessors and logic ICs. These chips are designed for operating several applications such as chassis, powertrain, safety, telematics & infotainment, body electronics and some others. The growing sales of commercial vehicles in different parts of the world has contributed to the market expansion. This market is projected to rise significantly with the growth of the overall automotive industry around the world.

• According to the International Organization of Motor Vehicle Manufacturers, around 24226493 commercial vehicles were sold in 2022 that increased to 27452301 in 2023.

Highlights of the Automotive Chip Market

• Asia Pacific dominated the automotive chip market due to the rising sales of passenger vehicles in countries such as India and China.
• Latin America is expected to grow with the highest CAGR due to the emergence of connected vehicles, advanced driver assistance systems, and the rising need for controlling and monitoring commercial vehicles.
• The passenger cars segment held the dominant share of the market due to the growing production of passenger vehicles in U.S. and Canada.
• The body electronics segment led the market due to the rising application of chips in various sectors including power distribution, motor control, module control, seat control, roof control, in-cabin charging, door windows and door control, windshield wiper control, light control and contribute towards enhancement of overall comfort.

Automotive Chip Market Statistics

• According to the International Organization of Motor Vehicle Manufacturers, around 65272367 passenger vehicles were sold globally in 2023.
• According to the Our World in Data, in 2023, around 18% vehicles sold globally were EVs.
• According to the CEIC, around 978,385 commercial vehicles were sold in India during 2023.
• According to the Malaysian Automotive Association, around 719160 passenger cars were sold in Malaysia in 2023.

Industry Leader Announcement

In August 2024, the vice president and general manager of Intel Automotive made an announcement stating that, “Intel’s strategy is to bring the power of AI into devices of every size and shape, and we’re thrilled to bring that expertise and our vast open AI ecosystem to the automotive industry, China’s rapid electric vehicle development cycles and advanced technological adoption make it an ideal testing ground for our next-generation technologies.”

Competitive Landscape

The automotive chip market is a highly fragmented industry with the presence of numerous dominant players. Some of the prominent market players in this industry consists of Texas Instruments Incorporated, NXP Semiconductors, Broadcom, Qualcomm, Micron Technology, Inc, Intel Corporation and some others. These market players are increasing their investment in research and development of advanced chips for automotives in different parts of the world.

• According to the annual report of Qualcomm, the annual revenue of automotive segment in 2023 was US$ 1872 million that increased to US$ 2910 million in 2024.

Market Segmentations

By Type

• Analog ICs
• Microcontrollers & Microprocessors
• Logic ICs

By Vehicle

• Passenger Vehicles
• Commercial Vehicles

By Application

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

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
• Middle East and Africa (MEA)
  • South Arabia
  • UAE
  • South Africa