Automotive semiconductor market set to nearly double to US $133 billion by 2030
Press Release, 6 November 2025
The market for automotive semiconductors is projected to surge to about US $133.05 billion by the year 2030, up from roughly US $77.42 billion in 2025, reflecting a compound annual growth rate (CAGR) of around 11.4 %. This fast growth is driven by three main forces: rapid electrification of vehicles, wider adoption of advanced driver-assistance systems (ADAS) and autonomous driving technologies, and the shift toward connected and software-defined vehicles.
One of the standout growth segments is sensors — covering radar, LiDAR, ultrasonic and image sensors — which are expected to record the highest CAGR among semiconductor components from 2025 to 2030. These sensors are essential for next-generation vehicles, enabling real-time perception, collision avoidance, battery monitoring, and overall smarter vehicle systems. Meanwhile, despite the strong push toward electric vehicles (EVs), internal combustion engine (ICE) vehicles remain significant. The report forecasts that ICE-powered vehicles will still hold the largest semiconductor market share by 2030, especially in emerging markets, thanks to their established infrastructure and cost-effectiveness.
Regionally, the Asia Pacific region is expected to dominate the market by 2030. The growth is underpinned by the strong automotive manufacturing base in countries like China, Japan, South Korea and India, combined with rising EV production and government initiatives to boost local semiconductor ecosystems. Major players such as Infineon Technologies AG, NXP Semiconductors, STMicroelectronics, Texas Instruments Incorporated, Renesas Electronics Corporation and others are shaping the market through launches, partnerships and acquisitions.
In short, as vehicles become ever smarter, more connected and more electrified, the race for advanced semiconductors is becoming a cornerstone in the transformation of mobility.
Compiled using AI
