E/E & Semiconductor Service dataset – October 2025

S&P Global Mobility forecasts a 9% rebound in the automotive semiconductor market in 2025, surpassing US$ 91 billion after a stagnant 2024. From 2024 to 2031, the market is expected to grow at an average annual rate of 6.4%, nearing US$ 130 billion, driven by advancements in Software-Defined Vehicles (SDV), autonomy, electrification, and cockpit applications.

Despite US tariffs, light vehicle production (LVP) is projected to increase by 2% in 2025, though a 0.5% decline is expected in 2026 due to a downturn in North America. These estimates do not yet account for potential disruptions from the anticipated Nexperia chip shortage affecting production in late 2025 and early 2026.

The automotive semiconductor landscape is shaped by trends such as electrification, SDVs with advanced architectures, and rising consumer expectations for cockpit features. This leads to increased semiconductor content per vehicle, necessitating higher specifications for system-on-chip (SoC) and memory.

Key drivers for the 2025 market rebound include a modest recovery in vehicle production, accelerated deployment of L2+ autonomy in China, and reduced inventory depletion. The light vehicle market's resilience is bolstered by strong production in China, although uncertainties remain due to the Nexperia crisis.

After a period of inventory accumulation during the semiconductor shortage, the industry is now reducing excess inventory, expected to normalize by the end of 2026. The "Cross Domain" electronics segment is projected to drive significant revenue growth through 2031, with autonomy and powertrain electronics also showing strong growth, while body and chassis systems exhibit limited potential.

The current data is based on Light Vehicle Production from October 2025.