Automotive Chip Market
Report ID: SQMIG45I2314
Report ID: SQMIG45I2314
sales@skyquestt.com
USA +1 351-333-4748
Report ID:
SQMIG45I2314 |
Region:
Global |
Published Date: January, 2026
Pages:
179
|Tables:
92
|Figures:
66
Global Automotive Chip Market size was valued at USD 41.96 Billion in 2024 and is poised to grow from USD 46.96 Billion in 2025 to USD 115.43 Billion by 2033, growing at a CAGR of 11.9% during the forecast period (2026–2033).
Growing electrification of the automotive industry is projected to primarily bolster the sales of automotive chips over the coming years. Increasing demand for electric vehicles is also expected to be a key opportunity for automotive chip providers to go forward. The growing use of advanced digital technologies in vehicles and the rising use of advanced sensors are contributing to the growing sales of automotive chips. Moreover, advancements in semiconductor and chip technologies are also estimated to provide new business scope for automotive chip suppliers in the long run. Surging sales of luxury vehicles and growing adoption of advanced infotainment and navigation systems are also predicted to bolster the sales of automotive chip through 2032. Imposition of stringent vehicle safety and emission mandates are also expected to create an opportune setting for automotive chip providers over the coming years.
On the contrary, semiconductor shortages, complexity in integration, high dependence of chip fabrication facilities, and cybersecurity risks are estimated to be key restraints for automotive chip market growth across the study period and beyond.
Market snapshot - 2026-2033
Global Market Size
USD 36.76 billion
Largest Segment
Passenger Vehicles
Fastest Growth
Commercial Vehicles
Growth Rate
11.2% CAGR
To get more insights on this market click here to Request a Free Sample Report
Global Automotive Chip Market is segmented by Type, Vehicle Type, Application and region. Based on Type, the market is segmented into Analog ICs, Microcontrollers & Microprocessors and Logic ICs. Based on Vehicle Type, the market is segmented into Passenger Vehicles and Commercial Vehicles. Based on Application, the market is segmented into Chassis, Powertrain, Safety, Telematics & Infotainment, Body Electronics and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Microcontrollers and microprocessors are forecasted to account for the largest global automotive chip market share in the future. The rapid surge in popularity and adoption of electric vehicles and hybrid vehicles around the world is forecasted to bolster the dominance of this segment in the future. . Increasing computational requirements of vehicles and growing demand for better real-time data processing are also estimated to create new opportunities for automotive chip providers via this segment in the long run.
On the other hand, the demand for logic ICs is predicted to increase at a robust CAGR over the coming years. Growing investments in the development of autonomous vehicles and the need for logic-based operations in vehicles are expected to help this segment offer new business scope through 2032. Increasing integration of artificial intelligence and other advanced technologies with vehicle systems is also expected to bolster the adoption of logic ICs in the future.
Passenger vehicles are estimated to spearhead the global automotive chip market revenue generation in the future. Rapidly increasing sales of passenger vehicles around the world and growing disposable income of people are slated to cement the dominance of this segment going forward. Growing demand for advanced infotainment, navigation, and safety systems in these passenger vehicles as the standard of living of people increases is also expected to bolster the sales of automotive chips via this segment in the future.
On the other hand, the demand for automotive chips in commercial vehicles is projected to surge at an impressive pace over the coming years. The imposition of strict safety mandates for commercial vehicles and growing use of advanced safety systems in commercial vehicles are offering new business scope for market players.
To get detailed segments analysis, Request a Free Sample Report
The Asia Pacific region is projected to hold sway over the global automotive chip industry in the long run. The presence of leading automotive manufacturers and a strong semiconductor and chip manufacturing industry in this region makes it the most opportune market in the world. India, China, Japan, and South Korea are estimated to be the leading countries where demand for automotive chip is slated to soar high through 2032 and beyond. The rising popularity of electric vehicles and rapidly increasing sales of vehicles are further cementing the dominance of the Asia Pacific region.
Meanwhile, the demand for automotive chips in Europe holds the second-largest automotive chip market share. The presence of leading automotive manufacturers, growing adoption of advanced safety and infotainment systems, and growing demand for electric vehicles are providing lucrative opportunities for automotive chip suppliers. Availability of incentives and subsidies for sales and purchase of electric vehicles in the European region are also expected to bolster revenue generation going forward. Germany, France, and the United Kingdom are expected to be leading markets in the European region across the study period and beyond.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Demand for Electric Vehicles
Better Infotainment and Connectivity
High Costs of Development and Manufacturing
Complexity in Integration
Request Free Customization of this report to help us to meet your business objectives.
Automotive chip companies should invest in the development of chips that are affordable yet highly advanced to maximize their revenue generation. Targeting the Asia Pacific and Europe regions is expected to bring the most revenue for automotive chip suppliers around the world. Collaborations and partnerships can help fast track the development of novel chips and also help companies expand their market share and presence through 2032.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, high investments in the electrification of the automotive industry and growing advancements in chip manufacturing technologies are estimated to drive automotive chip demand. However, complexity in integration and high costs of development and manufacturing are slated to hamper automotive chip sales outlook in the long run. The presence of key automotive and semiconductor manufacturing companies in the Asia Pacific region helps it emerge as the leading market in the world for automotive chip providers. Development of AI-powered chips and system-on-chip (SoC) solutions are slated to offer highly rewarding business opportunities for automotive chip suppliers.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 41.96 Billion |
| Market size value in 2033 | USD 115.43 Billion |
| Growth Rate | 11.9% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Automotive Chip Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Chip Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Chip Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Chip Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
REQUEST FOR SAMPLE
REQUEST FREE CUSTOMIZATION
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Feedback From Our Clients
USA (+1) 351-333-4748
