Global Automotive Semiconductor Market Nears $100 Billion by 2029 as Logic Chips Take the Lead

The global market for automotive semiconductors is set for steady expansion in the second half of the decade, according to data released on December 18 by TrendForce’s Jibang Consulting research arm. Analysts project a compound annual growth rate (CAGR) of 7.4% between 2024 and 2029. The market, valued at $67.7 billion at the start of that period, is expected to climb to roughly $96.9 billion by 2029—putting it within striking distance of the $100 billion mark.

Researchers note that some segments are growing much faster than others. In particular, demand for high-performance chips such as logic processors and advanced data storage solutions is accelerating well beyond the pace seen in more traditional components like microcontrollers.

Automotive logic processors stand out as the fastest-growing category, with average production growth estimated at 8.6%. This shift highlights where value is increasingly concentrated in the industry: intelligent systems, advanced software integration, and the ongoing electrification of vehicles.

Analysts also point to several broader trends reshaping the automotive semiconductor landscape. These include a rising number of increasingly sophisticated sensors, a gradual move away from decentralized electronic architectures toward centralized computing platforms, and the step-by-step removal of traditional in-cabin control systems as vehicle functions become more software-driven and automated.