Automotive Semiconductor Demand Outlook 2022 to 2031
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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 short-term pressures, automotive semiconductor demand is still expected to grow 13.9% year-on-year to $73.5 billion in 2024. Over the 5-year period 2023 to 2028 the CAAGR is expected to be +12.4%. Including semiconductor-based sensors, the CAAGR for automotive semiconductor dollar demand is expected to be slightly lower at +11.8%. The global automotive semiconductor market (including semiconductor-based sensors) will grow to $123.5 billion by 2028 and reach $152.8 billion by 2031.
