Accelerating electrification and intelligentization are expected to drive the automotive semiconductor market to nearly $100 billion by 2029.
TechNews Report
December 17, 2025
Author: TechNews
According to a recent TrendForce survey, the accelerated electrification and intelligentization of the automotive industry will drive the global automotive semiconductor market to grow steadily from approximately $67.7 billion in 2024 to nearly $96.9 billion in 2029, representing a compound annual growth rate (CAGR) of 7.4% from 2024 to 2029.
However, growth across different automotive chip markets is highly uneven. High-performance computing (HPC) chips, represented by logic processors and high-level memory, are growing faster than traditional components such as microcontrollers (MCUs), reflecting a rapid concentration of market value in core areas supporting intelligentization and electrification.
TrendForce research shows that the global penetration rate of new electric vehicles (including BEVs, PHEVs, FCVs, and HEVs) rose to 29.5% this year. The automotive industry is also accelerating its intelligent transformation, relying on core elements such as multi-sensor configurations, high-speed communication, and AI model applications. The transition of electronic/electrical architecture (E/E Architecture) from distributed to domain-centralized and then centrally centralized is also crucial. The massive data volumes from multi-sensor configurations and the ever-increasing number of parameters in AI models are driving an exponential increase in the computing power demand for computing chips in vehicles.
Furthermore, chip manufacturers play a vital role in the varying degrees of integration across different automakers' functional domains, including body control, remote processing, intelligent driving, and smart cockpits. Chip manufacturers have launched Cockpit/ADAS Integrated SoCs, marking their first year of commercialization. Controller integration helps reduce the number of controllers, share electronic components, and simplify wiring harness layout, offering cost benefits that are expected to drive the widespread adoption of intelligent vehicles. TrendForce forecasts that the CAGR for automotive logic processors will be 8.6% from 2024 to 2029, higher than the industry average of 7.4%.
Automotive Chip Competition Intensifies: New Entrants Challenge Established Players
Different semiconductor categories are experiencing varying growth rates, leading to fierce competition among chip manufacturers. NVIDIA, which dominates the server market, and Qualcomm, the mobile chip leader, are aggressively entering the automotive intelligence field with their high-performance chips and rich hardware and software ecosystems. Chinese companies such as Horizon Robotics are also rapidly rising due to technological advancements, localization policies, and the increasing demand for intelligent solutions. While traditional automotive chip manufacturers face challenges, their broad product portfolios, reliability, and close customer relationships remain the cornerstones of their competitiveness against numerous new entrants.
TrendForce observes that the automotive semiconductor market is diverse, with each manufacturer facing both advantages and challenges. The key to capturing growth trends lies in establishing strategic alliances with close cooperation among multiple parties and developing hardware and software integration capabilities. Pure hardware performance competition is no longer the sole determining factor.
【Disclaimer】
The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, text description and originality have not been verified by this site. This site does not make any guarantee or commitment to this article and all or part of the content, authenticity, completeness, and timeliness. It is for readers' reference only. Please verify the relevant content yourself.
The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, text description and originality have not been verified by this site. This site does not make any guarantee or commitment to this article and all or part of the content, authenticity, completeness, and timeliness. It is for readers' reference only. Please verify the relevant content yourself.
Creating Nano Technologies, Inc.
59 Alley 21 Lane 279, Chung Cheng Road, Yung Kang City, Tainan, TAIWAN
TEL:886-6-2323927 FAX:886-6-2013306 URL: http://www.creating-nanotech.com
59 Alley 21 Lane 279, Chung Cheng Road, Yung Kang City, Tainan, TAIWAN
TEL:886-6-2323927 FAX:886-6-2013306 URL: http://www.creating-nanotech.com