November 27, 2024 /SemiMedia/ — Yole Group has projected that the automotive semiconductor market will grow to $100 billion by 2029, with semiconductor content per vehicle reaching $1,000. Advanced driver-assistance systems (ADAS) and safety applications are expected to see the fastest growth, with a compound annual growth rate (CAGR) of 14% from 2023 to 2029. Electrification, the second-largest driver of market expansion, is forecasted to grow at a CAGR of over 13% during the same period.

While the pace of electrification has slowed in Europe, the Chinese market remains highly active, maintaining its position as a key growth engine.

“The global automotive market is growing at a slower pace, creating challenges for some original equipment manufacturers (OEMs) and suppliers in their transition.

However, the semiconductor device market is still expected to achieve significant growth of 11% CAGR, reaching nearly $100 billion by 2029,” said Dr. Yu Yang, principal analyst with Yole Group's automotive semiconductor team.

Yole's 2024 edition of the Semiconductor Trends in Automotive report provides an in-depth analysis of the evolving automotive ecosystem and supply chain. It outlines current technological trends and delivers market value, shipment, and wafer forecasts for the period from 2019 to 2029.

Additionally, Yole highlighted the increasing adoption of its “Triple-C” model, a professional tool designed to help OEMs develop semiconductor strategies. The model has gained traction among the world’s top 20 OEMs and leading Chinese electric vehicle startups, including Nio, XPeng, and Li Auto. The report emphasized growing diversity within the ecosystem, with OEMs taking a more active role in the semiconductor sector.

Chinese OEMs, in particular, are making broader investments in various chip categories and deepening their involvement in upstream supply chains. Power modules, critical for enabling electric vehicles, have attracted significant investment from nearly all Chinese OEMs. High-performance processors and microcontrollers (MCUs) are also key focus areas for manufacturers.

The report underscores that the increasing demand for automotive semiconductors will require greater technological innovation and collaboration across the supply chain to address evolving market challenges.