According to a report by Omdia, the automotive semiconductor industry will surge at a compound annual growth rate of 12.3% through 2025 as the world recovers strongly from the COVID-19 pandemic.

Omdia noted that semiconductor usage in automobiles has been growing steadily over the past decade, but several recent trends have conspired to accelerate automotive semiconductor revenue growth.

These trends include growing sales of pure electric vehicles and growing demand for advanced driver assistance systems and infotainment and telematics systems, said Sang Oh, senior research analyst for automotive semiconductors at Omdia.

Omdia: Automotive semiconductor industry to grow at 12.3% CAGR through 2025-SemiMedia

"On average, BEVs generate 2.9 times more semiconductor revenue than conventional combustion engine vehicles," Oh said. "Additionally, ADAS applications such as camera modules for parking assist and collision warning, and I&T applications such as the transition from analog or hybrid instrument clusters to digital instrument clusters are also driving increased semiconductor usage."