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Electronics news

Global Automotive IC Market to Reach $121 Billion by 2031

According to a new report by Allied Market Research, the global automotive IC market size will reach $121.3 billion by 2031, registering a compound annual growth rate (CAGR) of 9.6% from 2023 to 2032.

The global automotive IC market is driven by factors such as increasing demand for advanced driver assistance systems (ADAS), increasing demand for electric vehicles (EVs), and growing demand for autonomous driving. However, design complexity and high manufacturing cost are restraining the growth of the automotive microchips market. On the contrary, increased focus on cybersecurity and rising demand for connected cars is expected to provide lucrative opportunities for the automotive chips market over the forecast period.

APAC to maintain its dominance by 2031

Asia Pacific is projected to maintain its dominance over the period, from 2022 to 2031. This will witness the highest compound annual growth rate (11.4%). This is attributed to the increasing demand for electric and autonomous vehicles, and the growing automotive industry in this region.