Automotive Chip Market: Logic ICs and Microprocessor Segment Forecasts

The global automotive chip market was valued at USD 41.47 billion in 2023 and is projected to reach USD 85.99 billion by 2030, expanding at a CAGR of 11.2% from 2024 to 2030. Continuous innovation supported by enhanced research and development activities has led to significant technological advancements across the automotive industry.

Rising demand for improved vehicle performance, enhanced fuel efficiency, sustainability, and reduced carbon emissions is driving market growth. Additionally, the increasing adoption of electric vehicles (EVs), along with supportive government regulations and incentives, is expected to further boost demand for automotive semiconductors during the forecast period.

Key Market Trends & Insights

• The Asia Pacific automotive chip market dominated the global market with a revenue share of 43.2% in 2023.
• By type, the microcontrollers and microprocessors segment held the largest market share of 45.8% in 2023.
• By vehicle type, passenger vehicles accounted for the largest revenue share in 2023.

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Market Size & Forecast

• 2024 Market Size: USD 41.47 Billion
• 2030 Projected Market Size: USD 85.99 Billion
• CAGR (2024–2030): 11.2%
• Largest Market (2024): Asia Pacific

Competitive Landscape

The automotive chip market is highly competitive, with key players such as Qualcomm Technologies, Inc., STMicroelectronics, Texas Instruments Incorporated, NXP Semiconductors, and Renesas Electronics Corporation driving innovation. Companies are actively adopting strategies including continuous R&D, product innovation, technology exchange, and strategic collaborations through mergers, acquisitions, and partnerships to address rising competition and evolving automotive requirements.

• Qualcomm Technologies, Inc. is a leading innovator in the technology sector, offering a diverse portfolio across multiple industries. Its solutions are widely deployed in smartphones, consumer electronics, networking, IoT, and automotive applications. In the automotive sector, Qualcomm provides advanced solutions such as QCA6678AQ 802.11ax MIMO single-MAC, QCA6595AU Wi-Fi 5 / Bluetooth 5.1 automotive dual-MAC combo chip, CSR8350, and other platforms supporting automotive cockpits, car-to-cloud connectivity, and advanced driver assistance systems (ADAS).
• STMicroelectronics is a global semiconductor leader delivering advanced technologies across the automotive value chain, from R&D and chip design to manufacturing and customer support. The company’s automotive portfolio includes ADAS devices, automotive microcontrollers, logic ICs, power management solutions, imaging technologies, motor drivers, wireless connectivity, and audio ICs. Its automotive logic IC offerings include bus buffers, binary counters, oscillators, flip-flops, and latches, supporting a wide range of vehicle electronics applications.

Prominent Companies

• Qualcomm Technologies, Inc.
• Renesas Electronics Corporation
• Infineon Technologies AG
• STMicroelectronics
• Texas Instruments Incorporated
• NXP Semiconductors
• Broadcom
• Micron Technology, Inc.
• Intel Corporation
• ROHM CO., LTD.

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Conclusion

The automotive chip market is expected to witness robust growth through 2030, fueled by accelerating vehicle electrification, advancements in autonomous driving technologies, and increasing integration of electronics in modern vehicles. Continuous innovation, strategic partnerships, and supportive regulatory frameworks will remain key factors shaping the future of the market.