Narrative: Automotive Semiconductor Demand 2022 to 2031– Q4 2024
Explore the projected 10.3% growth in automotive semiconductor consumption for 2024 and long-term market trends, as TechInsights forecasts demand to reach $130 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. However, TechInsights forecasts automotive semiconductor consumption from vehicle production will still grow 10.3% year-on-year to $68.6 billion in 2024. Over the 5-year period 2023 to 2028 the CAAGR is expected to be +10.2%. Including semiconductor-based sensors, the CAAGR for automotive semiconductor dollar demand is expected to be slightly lower at +9.8%. The global automotive semiconductor market (including semiconductor-based sensors) will grow to $109.5 billion by 2028 and reach $130.0 billion by 2031.
