Automotive Semiconductor Demand 2022 to 2031 – Q3 2024
Despite a Q4 2023 oversupply swing, automotive semiconductor demand is set to grow 12.2% in 2024, with the market expected to reach $113.7 billion by 2028 and $152.7 billion by 2031.
Slowing demand in the electric vehicle sector was a major factor in the market swing towards oversupply in the final quarter of 2023 which resulted in demand for semiconductors no longer being front-loaded and semiconductor suppliers facing pressure from customers to implement price reduction regimes. Despite the ongoing pressures, automotive semiconductor demand is still expected to grow 12.2% year-on-year to $69.4 billion in 2024. Over the 5-year period 2023 to 2028 the CAAGR is expected to be +11.3%. Including semiconductor-based sensors, the CAAGR for automotive semiconductor dollar demand is expected to be slightly lower at +10.8%. The global automotive semiconductor market (including semiconductor-based sensors) will grow to $113.7 billion by 2028 and reach $152.7 billion by 2031.
