Automotive semiconductor market seen topping $114 billion by 2030

By AI, Created 9:53 AM UTC, May 20, 2026, /AGP/ – The Business Research Company projects the global automotive semiconductor market will reach $113.83 billion by 2030, growing at an 11.4% CAGR from 2026 to 2030. Asia Pacific and China are expected to lead growth as EVs, ADAS, and connected vehicle technology push semiconductor content higher across vehicles.

Why it matters: - Automotive semiconductors are becoming a larger share of both the automotive supply chain and the wider electronics industry as vehicles add more computing, sensing, and power management content. - The market’s growth is tied to EV adoption, ADAS, and connected vehicle systems, which increases demand for processors, sensors, power devices, and memory. - The report’s forecast points to a market that will pass $114 billion by 2030, underscoring how central chips have become to vehicle electrification and digital features.

What happened: - The Business Research Company released its Automotive Semiconductor Market Report 2026, covering market size, trends, and forecasts for 2026–2035. - The report estimates the global automotive semiconductor market will reach $113.83 billion by 2030. - The market is projected to grow at an 11.4% CAGR from 2026 to 2030. - The report also lists an expected CAGR of 11% leading up to 2030. - The company published a free sample request page and a detailed report page.

The details: - Asia Pacific is projected to be the largest regional market in 2030 at $52 billion. - Asia Pacific is expected to grow from $29 billion in 2025 at a 12% CAGR. - China is projected to be the largest country market in 2030 at $29 billion. - China’s market is expected to grow from $16 billion in 2025 at a 13% CAGR. - The processor segment is forecast to be the largest component category in 2030, at 29% of the market and about $33 billion. - The processor segment is supported by demand for high-performance computing, ADAS, autonomous driving, infotainment, digital cockpits, and real-time data processing. - The market is segmented by component into processor, analog IC, discrete power, sensor, memory, and other components. - The market is segmented by vehicle type into passenger vehicle, light commercial vehicle, and medium and heavy commercial vehicle. - The market is segmented by propulsion type into internal combustion engine, electric, and hybrid. - The market is segmented by application into powertrain, safety, body electronics, chassis, and telematics and infotainment. - The Electrical and Electronics Components market, described as the parent market, is expected to reach about $122 billion by 2030. - Automotive semiconductors are projected to represent around 93% of that parent market. - Within the broader Electrical and Electronics industry, projected at $5,611 billion by 2030, automotive semiconductors are estimated to account for nearly 2% of total value.

Between the lines: - The report’s growth story centers on three structural shifts: EV infrastructure buildout, broader ADAS adoption, and faster vehicle electrification. - EV infrastructure growth is expected to add about 3.0% annual growth to the market. - ADAS adoption is projected to contribute around 2.8% annual growth. - Vehicle electrification is projected to contribute around 2.5% annual growth. - The report says the biggest growth opportunities over the next five years are in processors, analog ICs, discrete power devices, sensors, memory, and other components. - Those segments are projected to add more than $47 billion in market value by 2030. - The processor market is forecast to grow by $14 billion from 2025 to 2030. - The analog IC market is forecast to grow by $10 billion over the same period. - The discrete power market and sensor market are each projected to add $8 billion. - The memory market is projected to add $4 billion. - The other components market is projected to add $3 billion. - The report points to a shift toward more semiconductor-rich vehicles as automakers move from combustion platforms to electric and hybrid architectures.

What’s next: - The market is expected to keep expanding through 2030 as charging networks, battery systems, connected vehicles, and driver-assistance features spread. - Asia Pacific is expected to remain the top region, supported by major chipmakers, automakers, EV production, and government localization policies. - China is expected to stay the largest national market as local chip production, EV manufacturing, and autonomous driving investments increase. - The Business Research Company says its research base includes more than 17,500 reports across 27 industries and 60+ geographies. - The firm says its research is powered by 1,500,000 datasets, secondary research, and interviews with industry leaders.

The bottom line: - Automotive semiconductors are moving from a supporting component to a core growth market in the auto industry, with electrification and software-defined vehicles driving demand higher.