Automotive Integrated Circuits Market Size

Automotive Integrated Circuits Market Analysis

The Automotive Integrated Circuits Market size is estimated at USD 74.45 billion in 2024, and is expected to reach USD 119.34 billion by 2029, growing at a CAGR of 9.90% during the forecast period (2024-2029).

• The automotive industry has transformed rapidly over the past few years with the advent of numerous advanced technologies, such as 3D mapping applications, electric vehicles, and automobile automation. This has increased the demand for several advanced semiconductors, including sensors, memory devices, ICs, and many more. The growing developments of passenger cars and the demand for vehicle safety features have fueled the market growth of automotive integrated circuits.
• Another trend in the automotive industry is the shift toward electric vehicles. For instance, with the growth in EVs, the demand for power electronics is also rising, positively impacting the market studied. Semiconductors are critical to the future of the EV industry due to their capability to control the powertrain and battery. These devices are also used in the various touchscreens installed on the driver's dash and the back of passenger seats. As the demand for automation and sophistication in the automotive industry continues to rise, more ICs will be increasingly incorporated into onboard systems for various applications.
• Automotive cybersecurity is a growing concern with the increasing connectivity of vehicles. Logic ICs with built-in security features, encryption capabilities, and secure communication protocols will play a vital role in safeguarding vehicle systems and protecting against cyber threats. These trends represent potential directions for logic ICs in the automotive industry. However, the automotive industry is dynamic, and the pace of technological advancements, regulatory changes, and market demands can influence the logic IC market.
• Integrated circuits (ICs) are anticipated to carry out various intricate tasks. As technology progresses, there is a rising need for enhanced features and capabilities in electronic devices. To fulfill these demands, designers must integrate sophisticated ICs and algorithms. The expanded functionality results in more extensive and intricate designs, posing challenges in managing and optimizing the interactions between various components and impeding market growth.
• Macroeconomic factors like inflation significantly impact manufacturing, leading to higher costs. This can be due to various factors, such as higher prices for raw materials, increased shipping costs, and labor costs and shortages. As a result, manufacturers may be forced to raise their prices to maintain profitability, ultimately decreasing product demand. Inflation can also lead to contract constraints, shifts in labor, and input issues for manufacturers. Therefore, rising inflation could restrain the growth of the market studied.