The EV semiconductors market is projected to reach USD 57.48 billion in 2032, growing from USD 24.09 billion in 2025, at a CAGR of 9.1%. The global EV semiconductors market is growing rapidly, driven by rising electric vehicle adoption and advanced automotive technologies. Key market drivers include electrification of powertrains, ADAS integration, and demand for high-performance computing in vehicles. Companies like NXP, Infineon, and STMicroelectronics are developing specialized microcontrollers, power modules, and sensors to meet these needs. Innovations in silicon carbide (SiC) and gallium nitride (GaN) are improving efficiency and thermal performance, while software-defined vehicle architectures are increasing demand for complex semiconductors.
Additionally, geopolitical tensions and trade restrictions, such as US tariffs on imported chips and China’s export limits on critical minerals, disrupt supply chains. Companies like TSMC and automakers are expanding domestic manufacturing and diversifying suppliers to mitigate these risks. These trends position the EV semiconductors market for strong growth amid technological and geopolitical challenges.
By technology, the silicon-based semiconductors segment is projected to account for a larger share than the wide-bandgap semiconductors segment during the forecast period. This segment’s dominance is driven by the widespread use of silicon-based semiconductors in power electronics, battery management systems, and motor control units. Due to their proven reliability and cost-effectiveness, EV manufacturers, including Tesla, BYD, Hyundai, and Volkswagen, rely on silicon-based IGBTs and MOSFETs for traction inverters, onboard chargers, and DC-DC converters. Recent developments underline this dominance. In May 2025, Infineon supplied silicon-based SiC traction modules and microcontrollers to Rivian for its R2 platform, while in July 2025, NXP expanded the production of silicon-based power management ICs to support next-generation EVs. Silicon-based semiconductors remain preferred for a wide range of voltage and temperature conditions, and ongoing innovations in efficiency and thermal management reinforce their market leadership, making them the largest segment in EV semiconductors during the forecast period.
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By component type, the microcontrollers & processors segment is projected to grow strongly during the forecast period, driven by their critical role in managing powertrains, battery management systems, and in-vehicle electronics. EVs from manufacturers, such as Tesla, BYD, Hyundai, and Volkswagen, increasingly rely on high-performance microcontrollers for energy-efficient operation, precise motor control, and integration of advanced features like ADAS and infotainment. Recent developments highlight this trend. In March 2025, NXP introduced its S32K5 microcontroller family to support software-defined vehicles with zonal and electrification architectures, while Infineon announced automotive RISC-V-based microcontrollers in the same month. Likewise, in April 2025, STMicroelectronics launched its Stellar series with embedded xMemory to support EV and software-defined vehicle innovations. Suppliers, such as NXP, Infineon, and STMicroelectronics, are scaling production and developing specialized automotive-grade MCUs to meet growing demand. The shift toward higher-voltage platforms, more complex EV architectures, and stricter regulatory requirements for safety and emissions further reinforces microcontrollers as a core growth driver in the EV semiconductors market.
By application, the advanced driver assistance system (ADAS) segment is driving strong demand for EV semiconductors, supported by safety regulations, consumer preference for automation, and steady technology upgrades. Leading automakers like Tesla, BMW, and Mercedes-Benz focus on advanced ADAS development, using radar, LiDAR, camera, and sensor fusion chips for features like automatic emergency braking, lane-keeping assist, and adaptive cruise control. Growth is now linked to higher autonomy levels and premium ADAS functions that require powerful microcontrollers, AI accelerators for real-time processing, and advanced sensor ICs. Government safety mandates in the US and Europe continue to support this shift. Companies like NVIDIA with the DRIVE platform and Qualcomm with Snapdragon Ride are pushing integrated ADAS chip solutions that simplify the system and lower cost. Software-enabled feature expansion through over-the-air updates keeps semiconductor requirements rising as vehicles advance toward more automated driving.
China is set to lead the EV semiconductors market in the Asia Pacific region during the forecast period. The region’s dominance is driven by its dominant EV production, strategic government policies, and strong investments in semiconductor technology. In 2024, China produced over 12 million units, highlighting its scale in the global market. The Ministry of Industry and Information Technology aims for automakers to achieve 100% self-developed chips by 2027, reducing reliance on foreign suppliers. Chinese companies, such as CRMicro, Silan, BYD, and CRRC, entered the global top 20 automotive semiconductor suppliers. Huawei and Xiaomi are investing heavily in AI chips and in-house chip design, achieving improved yields and targeting USD 7 billion in investments over the next decade. These factors and advancements in silicon MOSFETs, IGBTs, and SiC components position China to maintain leadership in EV semiconductors in Asia Pacific.
Key Players
The major players in the EV semiconductors market include Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (US), and Renesas Electronics Corporation (Japan).
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