Five companies control 50% of the automotive semiconductor market
The automotive industry’s impact on the global economy cannot be ignored. And currently, the automotive industry is going through a dramatic transformation – driven by electrification, autonomous driving and new mobility models.
At the heart of this evolution lies the automotive semiconductor market, which is poised for substantial growth as vehicles increasingly rely on advanced electronic systems.
The automotive semiconductor market is expected to see growth as the number of semiconductor devices per vehicle rises. According to projections by Yole Group, the average number of devices per car will increase from approximately 834 in 2023 to 1,106 by 2029.
International Data Corporation (IDC) expects the automotive semiconductor market to exceed USD 88 billion by 2027, backed by the growing adoption of advanced driver assistance systems (ADAS), electric vehicles (EVs), and the Internet of Vehicles (IoV).
The increasing value of semiconductors per vehicle is driving demand for high-performance computing chips, GPUs, radar chips, and laser sensors. To maintain competitive advantages, major vendors are employing strategies such as increased R&D investment, strategic partnerships, and innovative product development, reports the IDC.
According to the market intelligence provider, five companies dominated the automotive semiconductor market in 2023, collectively capturing over 50% of the market – namely Infineon, NXP, STMicroelectronics, Texas Instruments (TI) and Renesas Electronics.
Infineon excels in power electronics and advanced control systems, while NXP leads in vehicle-to-everything (V2X) communication and security technologies. STMicroelectronics has a strong footing in MEMS and power semiconductors, while TI offers a portfolio of analog and embedded solutions and Renesas offers a collection of microprocessors and SoCs to ensure functional safety and reliability.
Other prominent players in the field are Bosch, ON Semiconductor, Broadcom, Micron, and Qualcomm.
Evertiq has previously published articles exploring the transformation of semiconductors in the automotive space, such as “Electrification and autonomy to boost semiconductor content in cars”, “Silicon carbide evolution in e-mobility trends”, “The shift toward electrification gains momentum” and “What is the future for SiC in Europe?”.
To gain deeper insights, join Evertiq’s Expo in Sophia Antipolis on February 6, 2025, where Pierrick Boulay, Senior Technology & Market Analyst at Yole Group, will discuss how semiconductors shaping the future of automotive.
While global automotive market growth has been relatively slow, the mid-term outlook for semiconductor devices remains optimistic. With the growing adoption of ADAS and EVs, coupled with ongoing innovations in automotive architecture, the demand for semiconductor devices is set to rise steadily through 2029. Although the semiconductor supply has improved, challenges remain, requiring continuous adaptation by OEMs and semiconductor manufacturers alike. The central role of semiconductors in the automotive sector makes this a dynamic market to watch.
