The automotive semiconductor market is expected to grow at a significant CAGR of 11% between 2023 and 2029 to reach nearly $100 billion by the end of the period.

Value of semiconductor device per car: approximately $1,000 in 2029.

The conventional automotive supply chain must take a deep look at its position and transform it to remain competitive.

The automotive semiconductor segments most invested by OEMs are power electronics, high-performance SoCs for ADAS, cockpit, etc. and MCUs for future E/E architectures.

$1,000 is the figure to keep in mind to visualize the key role of semiconductor technologies within the automotive industry in 2029.

Analysts from the Yole group then announced an automotive semiconductor market of $100 billion. Behind these figures, ADAS and security will witness the highest growth with a CAGR of 14% between 2023 and 2029. Electrification is not included, as it is the second largest growth driver in the semiconductor market with a CAGR of over 13% during the same period. And even if electrification in Europe is slowing down compared to last year, the Chinese market remains very active in this area.

Yole Group releases its new report Semiconductor Trends in Automotive, 2024 Edition. This new product provides an in-depth understanding of the evolving automotive industry ecosystem and supply chain. It provides a comprehensive overview of current technology trends and a 2019-2029 forecast of market value, volume and wafers.

This year, the Triple-C model, a specialized tool designed to help OEMs develop their individual semiconductor strategies, was expanded to include all of the world’s 20 largest OEM groups, as well as leading Chinese electric vehicle startups such as Nio, XPeng, and Li Auto. The 2024 analysis highlights significant diversity within the ecosystem. On average, OEMs are becoming increasingly involved in the semiconductor sector. Another notable trend is that Chinese OEMs are investing more in various types of chips and are more deeply involved in the upstream supply chain. A great example of this are power modules, which are essential elements for electric vehicles. Almost all Chinese equipment manufacturers are investing in this segment in different formats. Besides power modules, high-performance processors and microcontrollers are also popular among OEMs. The Yole Group Automotive Semiconductor report offers a detailed discussion of each OEM’s strategy.

The semiconductor landscape is evolving rapidly, with emerging players making significant inroads. Who are the key vendors to watch and what cutting-edge technologies are they championing? The Yole Group’s Semiconductor Trends in Automotive report takes a comprehensive look at the intersection of automotive innovation and high-tech advancements, providing a deep dive into the latest trends driving the industry forward. With software-defined vehicles expected to emerge in the coming years, Yole Group analyzed their impact on E/E architecture and the growing demand for domain and zone controllers. In the field of semiconductors, particularly IT, chipsets are rapidly gaining ground. These could be used to integrate multiple functions within ADAS and infotainment systems, making future architectures more cost-effective.

For example:

Power Devices: The growing attractiveness of electric vehicles is driving demand for SiC MOSFET modules, essential for efficient energy conversion. As global BEV growth begins to slow, the gap is being filled by a range of hybrid technologies, all of which also rely heavily on advanced power electronics.

MCU: Advanced 16nm and 10nm MCUs are essential for ADAS applications. Yole Group analysts include, for example, radar and sensor control. The evolution of E/E architecture toward domain and zone controllers increases the need for high-performance MCUs while reducing the overall number of MCUs.

Computing power and memory: Achieving higher levels of autonomy, beyond level 3, will require greater memory capacity and improved computing power.