United States Automotive Semiconductor Market Size was valued at USD 5.9 Billion in 2022. The United States Automotive Semiconductor market industry is projected to grow from USD 6.2 Billion in 2023 to USD 10.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.6% during the forecast period (2024 - 2032). The proliferation of autonomous driving technologies and advanced driver assistance systems (ADAS) is a significant market driver for the expansion of the United States Automotive Semiconductor market in the United States.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The automotive sector in the United States is currently experiencing a substantial paradigm shift due to the expeditious transition to electric vehicles, which is driving the market CAGR. The increasing adoption of electric vehicles (EVs) in the United States can be attributed to a multitude of factors, including advancements in battery technology, environmental concerns, and government regulations that encourage the use of renewable energy. Due to the specific requirements of electric powertrains, battery management systems, and electric vehicle control units (ECUs), the demand for United States Automotive Semiconductors is consequently experiencing a significant increase. Electric vehicles are significantly dependent on semiconductor technology for the regulation of power management, motor control, and battery monitoring, among other operational functions. Power semiconductor devices, including gallium nitride (GaN), insulated gate bipolar transistors (IGBTs), and silicon carbide (SiC) MOSFETs, are critical constituents of powertrains for electric vehicles. They facilitate the effective conversion and management of energy in the United States.
Autonomous vehicles, commonly referred to as self-driving cars, symbolize the zenith of automotive advancements and hold the capacity to transform the transportation sector through the elimination of human drivers in the United States. This revolutionary technology operates securely and efficiently by utilizing an intricate network of processors, sensors, and artificial intelligence (AI) algorithms to interpret the surroundings, guide the vehicle, and execute maneuvers. Advanced sensor technology, such as LiDAR (Light Detection and Ranging), radar, cameras, and ultrasonic sensors, is a critical enabler of autonomous driving. The sensors produce an extensive volume of data pertaining to the environment of the vehicle, encompassing details regarding adjacent entities, road conditions, and traffic patterns. Semiconductor manufacturers assume a pivotal role in the advancement of sensor solutions characterized by dependable performance, low latency, and high resolution across a wide range of environmental conditions in the United States. Thus, driving the United States Automotive Semiconductor market revenue.
The United States Automotive Semiconductor market segmentation, based on components, includes processors, analog IC, discrete power devices, sensors, memory, and lighting devices. Consistently, the processors segment maintains the largest market share among the segments that are enumerated. Processors, which include system-on-chips (SoCs) and microcontrollers, are essential constituents in automotive electronics. They provide power to a multitude of functions, such as advanced driver assistance systems (ADAS), infotainment systems, and engine control. Their dominance in the United States Automotive Semiconductor market is a result of their adaptability and extensive range of applications across various vehicle subsystems. Furthermore, the integration of advanced features such as autonomous driving and the escalating complexity of vehicle electronics sustain the demand for high-performance processors, thereby consolidating their dominant market share position.
The United States Automotive Semiconductor market segmentation, based on vehicle type, includes passenger cars, LCVs, and HCVs. Passenger cars generally hold the most significant market share among the segments that are enumerated. Passenger cars comprise a diverse selection of automobiles, such as sports cars, hatchbacks, SUVs, and sedans, designed to accommodate both individual consumers and families. Passenger vehicles hold a substantial share of the automotive market on account of their extensive utilization and appeal to urban and rural demographics. Furthermore, passenger vehicles maintain their dominant market share in comparison to Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs) due to the consistent demand generated by developments in technology, design, and fuel efficiency.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The United States Automotive Semiconductor market segmentation, based on application, includes powertrain, safety, body electronics, chassis, and telematics & infotainment. The powertrain segment generally holds the most substantial market share among the segments that are enumerated. The powertrain comprises critical elements, including engines, gearboxes, and drivetrain systems, which are indispensable for the propulsion and performance of the vehicle. The ongoing advancement of fuel efficiency regulations and more stringent emission standards has sustained a significant demand for sophisticated powertrain solutions. Moreover, as the automotive industry shifts towards electric and hybrid vehicles, the powertrain sector sustains its innovative prowess, thereby reinforcing its prevailing position. Its substantial market share is attributable to its critical role in vehicle functionality or performance, which sets it apart from segments such as safety, body electronics, chassis, and telematics/infotainment.
The automotive industry in the United States has been witnessing consistent expansion due to a multitude of factors, such as technological progress, evolving consumer inclinations, and governmental regulations. Increasing demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs), which is driven by the fact that consumers and manufacturers equally prioritize energy efficiency and environmental sustainability, is one of the primary growth drivers. The current trend towards electrification is stimulating financial commitments towards the development of advanced battery technologies, infrastructure for electric vehicles, and the expansion of electric vehicle models offered by automotive manufacturers. An additional noteworthy element that has contributed to the expansion of the automotive sector in the United States is the increasing prevalence of autonomous driving technologies and advanced driver assistance systems (ADAS). Adaptive cruise control, lane-keeping assistance, and automatic emergency braking are ADAS features that are increasingly being installed as standard equipment in vehicles, thereby improving driver safety and convenience. Furthermore, the advancement of autonomous vehicles is inspiring enthusiasm and presenting prospects for investment as enterprises strive to create comprehensive autonomous driving solutions.
Leading market players are making significant investments in R&D to broaden their product offerings, which will support further growth in the United States Automotive Semiconductor market. In addition, market players are engaging in a range of calculated initiatives to increase their presence, with significant market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To expand and survive in a more competitive and rising market climate, United States Automotive Semiconductor industry must provide reasonably priced goods.
Major players in the United States Automotive Semiconductor market are engaging in research and development activities in an effort to boost market demand, including STMicroelectronics, TE Connectivity, Onsemi, Renesas Electronics, ROHM Semiconductor, Aptiv, CTS, Autoliv, ZF Group, Toshiba, Magna International, Melexis, and Valeo.
May 2022: Continental (Germany) expanded its extensive range of sensors with the introduction of the Battery Impact Detection (BID) system and the Current Sensor Module (CSM), both of which are designed for electrified vehicles. Both novel solutions are centered around battery protection and parameter retention.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 5.9ย Billion |
| Market Size 2023 | USD 6.2 Billion |
| Market Size 2032 | USD 10.4 Billion |
| Compound Annual Growth Rate (CAGR) | 6.6% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Vehicle Type, Fuel Type, and Region |
| Countries Covered | United States |
| Key Companies Profiled | STMicroelectronics, TE Connectivity, Onsemi, Renesas Electronics, ROHM Semiconductor, Aptiv, CTS, Autoliv, ZF Group, Toshiba, Magna International, Melexis, and Valeo. |
| Key Market Opportunities | Opportunities abound for companies to invest in charging stations, battery swapping stations, and grid infrastructure to support the growing adoption of electric vehicles. Market prospects exist for companies to innovate and offer ADAS solutions such as adaptive cruise control, lane-keeping assist, and automated parking features to meet increasing consumer demand for safety and convenience. |
| Key Market Dynamics | Increasing government regulations worldwide, promoting cleaner and more fuel-efficient vehicles, driving the adoption of electric vehicles and advanced powertrain technologies. Rapid developments in autonomous driving, electric propulsion, and connectivity fuel innovation and consumer demand for advanced automotive features. |
Frequently Asked Questions (FAQ) :
The United States Automotive Semiconductor market size was valued at USD 5.9 Billion in 2023.
The market is projected to grow at a CAGR of 6.6% during the forecast period, 2024-2032.
The key players in the market are STMicroelectronics, TE Connectivity, Onsemi, Renesas Electronics, ROHM Semiconductor, Aptiv, CTS, Autoliv, ZF Group, Toshiba, Magna International, Melexis, and Valeo.
The processor category dominated the market in 2023.
The passenger cars category had the largest share of the market.
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