Narrative: 2025 Q2 Automotive Semiconductor Demand 2023 to 2032

Automotive semiconductor demand grew 12.6% in 2024 despite tariff risks. Discover key trends and forecasts in our full market report.

Continued uncertainty around US tariff policies and the impact these will have on the global economy are the dominant factors impacting semiconductor demand from vehicle output in this update. Despite these challenges and slower growth in demand for battery electric vehicles in markets outside of China, automotive semiconductor demand from vehicle production grew 12.6% in 2024. TechInsights maintains the overall trends of electrification, ADAS/autonomy, infotainment, vehicle connectivity, and a move toward the use of domain controllers and zonal architectures and centralized processing, which means that overall semiconductor content continues to increase, and will incorporate tariff-associated cost increases in components in the 2025 and 2026 timeframe.

Over the 5-year 2024 to 2029 period, the CAAGR is expected to be +10.8%, including semiconductor-based sensors. The global automotive semiconductor market (including semiconductor-based sensors) will grow to $127.3 billion by 2029 and reach $147.0 billion by 2032.