According to the latest report from IC Insights, the automotive IC market share has grown steadily since 1998, from 4.7% of total IC sales that year to 7.4% in 2021.

IC Insights noted that the market share in the automotive segment is expected to continue to grow, reaching 8.5% this year and 9.9% in 2026.

The driving force behind this growth are the myriad number of new sensors, analog devices, controllers, and optoelectronics being incorporated into most new vehicles. Moreover, the rise of hybrid and all-electric vehicle sales worldwide is adding to this forecast growth.

IC Insights: Automotive IC marketshare is expected to rise to 10% by 2026-SemiMedia

Citing an Automotive News report, IC Insights said that a sharp increase in electric-vehicle sales in the first three months of 2022 raised the EV share of new car sales in the U.S. to approximately 5%. Of the approximately 250 million cars and light-duty trucks in the U.S., it is estimated that only 1% are electric, but interest and sales continue to grow.

These factors are expected to result in the automotive market registering the strongest 2021-2026 CAGR of any of the major end-use segments at 13.4%. Given its relatively small size, however, the high growth in the automotive IC segment is not expected to be enough to significantly lift the growth rate of the total IC industry over the next five years.