AutoTechInsight
Automotive semiconductor market tracker — March 2025
S&P Global Mobility's latest automotive semiconductor report forecasts a 16.5% year-over-year revenue growth for 2025–2026, signaling a strong rebound following a period of moderated expansion. The automotive semiconductor market is undergoing structural change, driven by evolving vehicle architectures, macroeconomic uncertainty, and rising demand for electrification, automation, and connectivity.
Light Vehicle Production (LVP) is projected to grow modestly through 2026 before gradually declining. These projections, however, do not yet reflect the potential impact of newly implemented tariff policies and trade measures introduced in April 2025, which may introduce further risk to the global LVP trajectory. Semiconductor content per vehicle continues to increase, particularly in ADAS, infotainment, and sensor-based systems. Advanced ADAS domain controllers (Level 2+/Level 3) are a key growth area, while segments like Window ECUs and standalone gateways show signs of maturity or architectural displacement. Hybrid vehicles are gaining share as BEV growth moderates. Meanwhile, demand is shifting from Level 1/2 to Level 2+/3 Autonomous Driving ECUs, aligned with OEM strategies for scalable autonomy.
Pricing pressure persists across several categories, including optical semiconductors, due to ASP reductions. Broader component classes such as discretes, memory, and SoCs are also affected by inventory corrections and cost dynamics. Despite ~4% anticipated price erosion in 2025 (excluding memory and SiC/GaN), no major collapse is expected. However, inventory-driven supply adjustments could lead to renewed shortages if BEV demand rebounds strongly in late 2025 and early 2026.
S&P Global Mobility’s Automotive Semiconductor Market Tracker offers in-depth analysis and long-range forecasting of the global semiconductor market for light passenger vehicles. This comprehensive database delivers detailed shipment and revenue projections across key semiconductor categories—Analog, Discrete, Logic, Microcontrollers, Memory, Optical, and Sensors—with granular insights into domain-specific automotive applications.
Key Features:
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Global shipment and revenue forecasts through 2030, segmented by semiconductor type, application domain (e.g., ADAS, Body & Convenience, Infotainment), and sub-systems.
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Trend analysis of semiconductor adoption, including component-level dynamics across evolving vehicle architectures.
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Coverage of propulsion-related transitions, from ICE to HEV/BEV, and their impact on semiconductor demand.
Strategic Questions Addressed:
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How large is the automotive semiconductor market, and what is the expected growth trajectory over the next five years?
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Which domains are driving the most significant increases in semiconductor content per vehicle?
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How are pricing trends, architectural shifts, and regulatory developments influencing revenue and shipment dynamics?
