Narrative: Semiconductor and Sensor Consumption Demand Forecast 2025 Q1
Explore how global challenges are shaping automotive semiconductor demand, with a 9.1% CAAGR and a market reach of $116.4 billion by 2028.
With uncertainty around US policies and concerns over a China debt crisis, fears over the global economy are the dominant factors impacting semiconductor demand from vehicle output in this update. Despite challenges around demand for battery electric vehicles, automotive semiconductor demand from vehicle production grew 9.5% in 2024. Semiconductor demand from vehicles being produced will remain strong with electrification and the underlying trends around new ADAS/autonomy, advanced infotainment, telematics, and connectivity driving demand.
This will also be reflected in a move towards use of domain controllers and zonal architectures and centralized processing adding additional demand to the overall semiconductor forecast. Over the 5-year 2024 to 2029 period the CAAGR is expected to be 9.1% including semiconductor-based sensors. The global automotive semiconductor market (including semiconductor-based sensors) will grow to $116.4 billion by 2028 and reach $129.8 billion by 2031.
