Automotive IC Market Size | Industry Trends, Share & 2025 Forecast

Q: What is the overall size of the automotive IC market?

The automotive IC market is expected to reach USD 91.6 billion by 2031.

Q: What is the CAGR of the automotive IC market during forecast period?

The automotive IC market is projected to grow at a CAGR of 9.6% during the forecast period.

Q: Which types of ICs are most in demand in the automotive industry?

Power management ICs, microcontrollers (MCUs), sensor ICs, and communication ICs are highly demanded.

Q: What challenges affect the growth of the automotive IC market?

Supply chain disruptions, design complexity, and high-performance thermal management are major challenges.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5218

Publication Date: Jul 2025

How big is the automotive IC market?

According to 6Wresearch internal database and industry insights, Global automotive IC (integrated circuit) market was valued at approximately USD 47.8 billion in 2024 and is projected to reach USD 91.6 billion by 2031, growing at a CAGR of 9.6% during the forecast period.

This growth is driven by increasing demand for advanced driver-assistance systems (ADAS), in-vehicle connectivity, electrification, and autonomous driving technologies. Moreover, the rising consumer preference for enhanced safety, comfort, and personalized driving experiences is further propelling market expansion.

Key Growth Factors of the Automotive IC Market

Rising integration of electronics in vehicles for safety, infotainment, and power management
Surge in electric vehicle (EV) production requiring complex power and control ICs
Growing demand for ADAS and autonomous vehicle features
Advancements in automotive-grade semiconductor manufacturing and design
Government regulations mandating safety and emission-reducing technologies
OEM focus on digital cockpits and real-time data processing within vehicles

Automotive IC Market Trends

Automotive ICs are shifting toward system-on-chip (SoC) architectures for integrated performance. Power-efficient ICs are being developed for EV battery management. Demand for AI-enabled ICs is rising in advanced infotainment and ADAS modules. There is a trend toward 7nm and below process nodes for higher performance. The adoption of over-the-air update-capable ICs is expanding across vehicle platforms.

Emerging Developments in the Automotive IC Market

Neuromorphic and quantum-inspired ICs are under exploration for real-time decision-making. 3D packaging and heterogeneous integration are boosting chip performance. ICs with built-in cybersecurity functions are gaining prominence. Collaboration between automakers and chipmakers is intensifying for platform optimization. Semiconductor fabs are ramping up automotive-dedicated production lines.