From analog dominance to the memory era: How vehicle architecture and memory pricing are reordering automotive semiconductor demand

Memory stands out as the fastest-growing segment, sustaining annual growth above 20% through the end of the decade.

S&P Global Mobility expects the automotive semiconductor market to return to growth in 2025, expanding by 6.6% to surpass $90 billion following a flat 2024. Looking further ahead, revenue is forecast to rise at a 7.4% compound annual rate through 2031, approaching $140 billion by the end of the period. The expansion is driven by the accelerating shift toward software-defined vehicles, higher levels of autonomy, electrified powertrains and increasingly sophisticated cockpit platforms, all of which raise semiconductor content per vehicle, compounded by constrained memory supply and rising dynamic access random memory (DRAM) pricing.