Global Automotive Semiconductor Market to Reach $64B by 2028

The growing focus on vehicle safety systems and a significant increase in the adoption of engine control units in automobiles are anticipated to drive the demand for automotive semiconductors. The global automotive semiconductor market size is expected to reach $63.92 billion by 2028, according to a new report by Grand View Research Inc.

The market is expected to expand at a CAGR of 6.2 percent from 2021 to 2028. Moreover, emerging technologies such as 5G and IoT are expected to play an instrumental role in increasing the demand for automotive semiconductors. Additionally, electric vehicles and all levels of assisted driving technologies are expected to create considerable growth opportunities in the next eight years.

Electrification in the automotive industry is growing rapidly in an effort to reduce carbon emissions. Having realized the importance of electric vehicle business opportunities, several manufacturers are increasingly investing in smart technologies, electronics and safety systems. Such components of electric vehicles comprise semiconductors equipped with advanced technologies to improve the functionalities of smart electronics. Hence, as the demand for hybrid and electric vehicles increases, the need for semiconductors is anticipated to increase in the forecast period.