Press release
Global Auto Integrated Circuit (IC) Market Expected to Achieve 6.5% CAGR by 2029: Growth Forecast Insights
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How Large Will the Auto Integrated Circuit (IC) Market Size By 2025?_x000D_
The automobile integrated circuit (IC) industry has experienced significant expansion in the past few years. Projected growth will see this market shift from $42.67 billion in 2024 up to $45.58 billion by 2025, reflecting a compound annual growth rate (CAGR) of 6.8%. This growth during the previous periods has been influenced by factors including increased vehicle manufacturing, growing demand from consumers for cars, supportive government policies in favor of the automotive sector, a surge in the income of the middle-class demographic, and the broadening of the automotive supply chain._x000D_
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How Big Is the Auto Integrated Circuit (IC) Market Size Expected to Grow by 2029?_x000D_
Anticipated robust expansion of the auto integrated circuit (IC) market is projecting it to be worth $58.55 billion by 2029 with a compound annual growth rate (CAGR) of 6.5%. Several factors, including the surge in electric vehicle adoption, stringent emissions regulations, increased demand for self-driving features, the development of automotive electrification, and the proliferation of intelligent transportation infrastructure, are contributing to the projected growth in this period. The period is likely to witness significant trends including a paradigm shift towards electric and hybrid vehicles, the assimilation of advanced driver-assistance systems, the surge in outsourcing automotive semiconductors, an escalated focus on designing energy-efficient ICs, and the expansion of interconnected vehicle ecosystems._x000D_
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Which Key Market Drivers Powering Auto Integrated Circuit (IC) Market Expansion and Growth?_x000D_
The growth of the auto integrated circuit (IC) market is anticipated to be propelled by the increasing uptake of electric vehicles (EVs). Electric vehicles, which replace traditional internal combustion engines with rechargeable battery-powered electric motors, are seeing a surge in adoption. This surge is fueled by escalating environmental consciousness, as individuals and governmental entities strive to curb carbon emissions and counteract climate change. There is a growing demand for auto integrated circuits as electric vehicles necessitate intricate electronic systems for functions like battery management, power conversion, motor control, and advanced driver assistance. For example, Cox Automotive Inc., a software development establishment from the US, amended its 2023 sales figures to 1,212,758 units in January 2025, marking a 49% rise as compared to 2022. In 2024, sales further escalated to 1,301,411 units, a 7.3% increase, and accounted for 8.1% of overall sales, a slight rise from the 7.8% share in 2023. Consequently, the increasing uptake of electric vehicles is a driving force for the expansion of the auto integrated circuit market._x000D_
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Which Fast-Growing Trends Are Poised to Disrupt the Auto Integrated Circuit (IC) Market?_x000D_
Leading entities in the automobile integrated circuit (IC) sector are adopting cutting-edge technologies, such as chiplet technology, to boost performance, scalability, and design adaptability. In chiplet technology, instead of one large monolithic die, a system-on-chip (SoC) is composed of several smaller chip modules (chiplets), enhancing performance, scalability, manufacturing yield, and design adaptability while also lowering costs. Case in point, Renesas Electronics Corporation, a Japanese semiconductor manufacturing firm, launched in November 2024, the R-Car X5H, the first of its kind automotive multi-domain SoC built on a 3-nanometer process technology. This state-of-the-art SoC combines top-tier AI acceleration, GPU performance, mixed-cruciality processing, and chiplet expansion capabilities, supporting applications in ADAS, infotainment, and gateway systems. This helps car manufacturers to create scalable and future-ready software-defined vehicles. The incorporation of chiplet extensions using the Universal Chiplet Interconnect Express (UCIe) standard lets customers effortlessly integrate additional NPUs, GPUs, or other specialized elements, providing versatility for upcoming vehicle architectures._x000D_
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What Are the Emerging Segments in the Auto Integrated Circuit (IC) Market?_x000D_
The auto integrated circuit (IC) market covered in this report is segmented as_x000D_
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1) By Product Type: Microcontrollers, Power Amplifiers, Sensor Integrated Circuits (ICs), Battery Management Integrated Circuits (ICs), Analog Integrated Circuits (ICs)_x000D_
2) By Technology Type: Analog Technology, Digital Technology, Mixed-Signal Technology, Embedded Technology, Discrete Technologies_x000D_
3) By Vehicle Type: Passenger Vehicles, Commercial Vehicles, Electric Vehicles (EVs), Hybrid Electric Vehicles (HEVs), Luxury Vehicles_x000D_
4) By Sales Channel: Original Equipment Manufacturers (OEMS), Aftermarket, Distributors, Online Retail, Direct Sales_x000D_
5) By Application: Advance Driver Assistance System, In-Vehicle Networking, Engine Management, Transmission Control System, Other Applications_x000D_
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Subsegments:_x000D_
1) By Microcontrollers: 8-Bit Microcontrollers, 16-Bit Microcontrollers, 32-Bit Microcontrollers, Automotive Grade Microcontrollers_x000D_
2) By Power Amplifiers: Audio Power Amplifiers, Radio Frequency Power Amplifiers, Switching Power Amplifiers, Linear Power Amplifiers_x000D_
3) By Sensor Integrated Circuits: Temperature Sensor Integrated Circuits, Pressure Sensor Integrated Circuits, Proximity Sensor Integrated Circuits, Accelerometer Sensor Integrated Circuits_x000D_
4) By Battery Management Integrated Circuits: Charging Management Integrated Circuits, Discharging Management Integrated Circuits, Cell Balancing Integrated Circuits, Protection Integrated Circuits_x000D_
5) By Analog Integrated Circuits: Operational Amplifier Integrated Circuits, Voltage Regulator Integrated Circuits, Comparator Integrated Circuits, Analog Signal Processing Integrated Circuits_x000D_
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Who Are the Global Leaders in the Auto Integrated Circuit (IC) Market?_x000D_
Major companies operating in the auto integrated circuit (ic) market are Samsung Electronics Co. Ltd., Robert Bosch GmbH, Qualcomm Incorporated, Toshiba Electronic Devices & Storage Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., Micron Technology Inc., Kyocera Corporation, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, Microchip Technology Incorporated, ON Semiconductor Corporation, Vishay Intertechnology Inc., ROHM Co. Ltd., Nexperia B.V., Littelfuse Inc., Wolfspeed Inc., Silicon Labs Inc., ABLIC Inc. _x000D_
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Which are the Top Profitable Regional Markets for the Auto Integrated Circuit (IC) Industry?_x000D_
Asia-Pacific was the largest region in the auto integrated circuit (IC) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in auto integrated circuit (IC) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa._x000D_
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