What Has Been the Growth of the Automotive SoC Market So Far?
The automotive soc market has seen considerable growth due to a variety of factors.
• The SoC market in the automotive sector has observed a notable augmentation in size over the past few years. The predictions show it expanding from a worth of $26.86 billion in 2024 to $29.12 billion in 2025, implying a compound annual growth rate (CAGR) of 8.4%.
Several factors contribute to this growth witnessed during the historic period, including the increasing intricacy in automotive electronics, the implementation of advanced driver-assistance systems (ADAS), the integration of infotainment systems, the growth of electric and hybrid vehicles, along with the necessity of safety and adherence to regulations.
What are the Forecasted Growth and Key Factors of the Automotive SoC Market?
The automotive soc market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the automotive SoC market is predicted to experience a substantial expansion in the coming years, with projections suggesting a growth to $41.29 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%.
This growth during the forecast period is largely expected to be driven by advancements in autonomous vehicle technology, vehicle-to-everything (V2X) communication, e-mobility and battery management, and the connected car ecosystem. The necessity for cybersecurity measures also contributes to this market growth. Key trends to look out for in this timeframe include the integration of sophisticated sensor interfaces, developments in heterogeneous computing architectures, a strong emphasis on cybersecurity in automotive SoCs, the increasing adoption of functional integration and consolidation, and a growing focus on over-the-air (OTA) software updates.
What Factors Are Driving Growth In The Automotive SoC Market?
The upsurge in the global demand for electric vehicles is set to boost the expansion of the automotive SoC market. Electric vehicles, that wholly or partially run on electric power through an electric engine rather than a standard combustion engine, make optimal use of automotive SoCs to enhance efficiency, interactivity, and safety. Therefore, a surge in the electric vehicles trend would necessitate a corresponding increase in the market growth. For example, the International Energy Agency (IEA), a France-based agency, reported in April 2023 that over 10 million electric vehicles were sold worldwide in 2022, a figure predicted to jump by 35% this year to 14 million. This impressive leap has lifted the contribution of electric vehicles to the total car market, from around 4% in 2020 to 14% in 2022, predicted to climb to 18% this year. Furthermore, battery production plans are expected to adequately fulfill the demand for electric vehicles up till 2030, as per IEA’s Net Zero Emissions by 2050 Scenario. As a result, the escalating demand for electric vehicles is fuelling the growth of the automotive SoC market.
How Is the Automotive SoC Market segmented?
The automotive SoC market covered in this report is segmented –
1) By Offerings: Hardware, Software, Services
2) By Vehicle Type: Passenger Cars, Commercial Vehicles
3) By Application: Infotainment System SOCs, Advanced Driver Assistance Systems (ADAS), Intelligent Transport System, In-Vehicle Networking System, Connected Vehicle Platform
Subsegments:
1) By Hardware: Processor (CPU, GPU, DSP), Memory (RAM, ROM), Power Management ICs, Communication Interfaces (CAN, Ethernet), Sensors (Camera, LiDAR, Radar)
2) By Software: Operating Systems (Real-Time OS, Linux), Middleware, Development Tools, Application Software
3) By Services: Design and Development Services, Integration Services, Maintenance And Support Services, Consulting Services
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What New Trends Are Influencing the Automotive SoC Market?
A key trend gaining traction in the automotive System-on-Chip (SoC) market is product innovation. Major firms in this sector are focusing on creating new tech solutions to bolster their market position. For instance, Qualcomm Technologies Inc., a leading semiconductor company based in the US, introduced the Snapdragon Ride Flex in January 2023, the first scalable SoCs family in the automotive sector. It is uniquely created to concurrently support the digital cockpit and cutting-edge driver assistance systems. With the Snapdragon Ride Vision stack pre-built into it, and its hardware and software jointly designed for computer vision, artificial intelligence (AI), and efficient power usage, it provides peak performance in a mixed-criticality situation.
Who Are the Key Players in the Automotive SoC Market?
Major companies operating in the automotive SoC market include:
• Samsung Electronics Co. Ltd.
• Robert Bosch GmbH
• Intel Corporation
• Denso Corporation
• Qualcomm Technologies Inc.
• Broadcom Inc.
• Toshiba Electronic Devices & Storage Corporation
• NVIDIA Corporation
• NEC Corporation
• Advanced Micro Devices Inc.
• Texas Instruments Incorporated
• MediaTek Inc.
• STMicroelectronics NV
• Infineon Technologies AG
• NXP Semiconductors NV
• Analog Devices Inc. (ADI)
• Renesas Electronics Corporation
• ON Semiconductor Corporation
• Microchip Technology Inc.
• Marvell Technology Inc.
• Cadence Design Systems Inc.
• Cypress Semiconductor Corporation
• Himax Technologies Inc.
• Nordic Semiconductor ASA
• Lattice Semiconductor Corporation
• Faraday Technology Corporation
• Ambarella Inc.
• Telechips Inc.
• Infotmic Co. Ltd.
• Fujitsu Semiconductor Limited
• Hyundai Autron Co. Ltd.
What Is The Most Dominant Region In The Automotive SoC Market?
Asia-Pacific was the largest region in the automotive SoC market in 2024. The regions covered in the automotive soc market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
