The global automotive Digital ICs market size was USD 37.74 Billion in 2022 and is expected to register a revenue CAGR of 11% over the forecast period, according to the latest report by Reports and Data.

As the automobile industry moves to connected cars and electric vehicles, the demand for cutting-edge electronic systems in cars has significantly increased. Automobile Digital ICss are critical components that enable the usage of functions like as safety, entertainment, and autonomous driving. The expanding popularity of Advanced Driver Assistance Systems (ADAS) has increased the demand for sensors, processors, and other semiconductor components. Because of the advent of EVs, power electronics and battery management systems are now required. As a result, the growth of the automotive sector is inextricably linked to the growth of the market for automotive Digital ICss.

Furthermore, the projected growth in market revenue is expected to be propelled by the expanding trends of intelligent cities and the Internet of Things (IoT). To manage complex data processing and communication, the incorporation of advanced semiconductor components becomes imperative. Embracing Vehicle-to-Everything (V2X) technology will be crucial to enable seamless interaction between vehicles and the surrounding intelligent city infrastructure.

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Intelligent Cities and IoT: The concept of smart or intelligent cities involves integrating various technologies and data-driven solutions to enhance urban infrastructure and services. IoT plays a crucial role in enabling this integration by connecting devices and systems for efficient data exchange and decision-making. In the automotive sector, this means vehicles will need advanced semiconductor components to process and communicate the vast amounts of data required for intelligent city infrastructure and services. This includes real-time traffic management, optimized routing, and vehicle-to-infrastructure (V2I) communication for improved overall efficiency.

Vehicle-to-Everything (V2X) Technology: V2X technology is a fundamental enabler for connected vehicles. It allows vehicles to communicate not only with other vehicles (V2V) but also with pedestrians, infrastructure (V2I), and other elements in the environment (V2P and V2G). This bi-directional communication is crucial for enabling features like collision avoidance, traffic coordination, and enhanced situtional awareness for drivers.

Electrification and Automation: The increasing shift towards electric and hybrid vehicles requires specific semiconductor solutions to support their unique requirements. Advanced power electronics are essential to manage the power flow between the battery and the electric drivetrain efficiently. Battery management systems (BMS) are crucial for monitoring and optimizing the performance and safety of electric vehicle batteries. Additionally, charging infrastructure necessitates the use of semiconductor components for power delivery and communication.

Autonomous Vehicles: Autonomous vehicles rely heavily on sophisticated semiconductor components to observe their surroundings and process data in real-time. These components include advanced Microprocessors such as LiDAR, radar, and cameras to provide a 360-degree view of the vehicle’s environment. Powerful processors and AI-based systems are employed to interpret sensor data and make decisions, ensuring safe and efficient navigation.

Product Type Outlook (Revenue, USD Billion; 2022 – 2032)

  • Analog ICs
  • Digital ICs
  • Memory ICs
  • Microcontrollers & Microprocessors
  • Sensors
  • Others

Application Outlook (Revenue, USD Billion; 2022 – 2032)

  • ADAS & Safety Systems
  • Body Electronics
  • Infotainment
  • Powertrain
  • Others

Vehicle Type Outlook (Revenue, USD Billion; 2022 – 2032)

  • Passenger Cars
  • Commercial Vehicles

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Some Key Highlights from the Report

  • In 2021, the analog integrated circuits segment had the highest revenue share. Electricity management, audio systems, and driver assistance systems are among the automotive applications that make use of analog integrated circuits. The demand for better power management systems, which are required for electric and hybrid vehicles, is driving growth in the analog ICs market. The expanding trend of combining many functions onto a single Digital ICs has also supported the growth of this market.
  • The ADAS & Safety Systems segment accounted for the greatest revenue share among these in 2021, owing to increased demand for cutting-edge driver assistance systems and safety features in modern cars. ADAS & Safety System elements like as adaptive cruise control, collision avoidance systems, and lane departure warning systems are examples of ADAS & Safety System features that reduce the risk of accidents and improve driver and passenger safety.
  • The Asia-Pacific area has the largest market for automotive Digital ICss because to big automakers in countries such as China, South Korea, and Japan. The primary reasons driving the growth of the automotive Digital ICs industry in the area are increased demand for electric vehicles and government policies supporting the usage of electric vehicles. Furthermore, the region is experiencing a significant growth in car manufacturing, which is expected to encourage continued expansion of the automotive Digital ICs sector in the region.

Regional Markets Highlighted in the Global Automotive Digital ICs Market Report:


  • North America
    • S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • K.
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa
    • Saudi Arabia
    • A.E.
    • South Africa
    • Rest of Middle East & Africa

Top Companies Profiled in the Report:

Infineon Technologies AG, Renesas Electronics Corporation, STMicroelectronics NV., NXP Semiconductors NV., Texas Instruments Incorporated, Broadcom Inc., Qualcomm Technologies, Inc., Intel Corporation, Micron Technology, Inc., Samsung Electronics Co., Ltd., and ROHM Semiconductor.

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