The North America automotive chip market was valued at USD 14.22 Billion in 2025. The industry is expected to grow at a CAGR of 10.70% during the forecast period of 2026-2035. The accelerated demand for over-the-air (OTA) software updates is driving the demand for sturdy automotive chips. These chips support continuous connectivity and enable real-time upgrades, diagnostics, and improved vehicle lifecycle management. In turn, all these factors have resulted in the market attaining a valuation of USD 39.30 Billion by 2035.
Base Year
Historical Period
Forecast Period
EV production is exploding, leading to an increased demand for power management and ADAS chips. The growing demand is further pushing companies towards increased global innovation and forming strategic partnerships with OEMs, boosting the growth in the North America automotive chip market.
Localization efforts towards semiconductor manufacturing that North America is undertaking, with financial assistance from the U.S. CHIPS Act, is causing several transformations in the B2B supplier networks that rely heavily on the Asian markets. The CHIPS Act provides USD 52 billion incentives for in chip production and research, as well as an investment tax credit for semiconductor manufacturing and semiconduction equipment manufacturing. Consequently, this is leading to opportunities for Tier 1 and Tier 2 automotive electronics providers.
Demand for microcontrollers that feature advanced security and cyber chips is on the rise with a variety of IoT-controlled or connected vehicles. B2B chipmakers offering advanced security solutions compliant with ISO standards have an incredible opportunity to develop data-driven vehicle architectures for potential automakers.
Compound Annual Growth Rate
10.7%
Value in USD Billion
2026-2035
*this image is indicative*
| North America Automotive Chip Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
14.22 |
|
Market Size 2035 |
USD Billion |
39.30 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
10.70% |
|
CAGR 2026-2035- Market by Country |
Canada |
11.8% |
|
CAGR 2026-2035 - Market by Type |
Microcontrollers and Microprocessors |
11.5% |
|
CAGR 2026-2035 - Market by Vehicle |
Passenger |
11.3% |
| 2025 Market Share by Country | United States of America |
91.2% |
Increased electrification of vehicles, autonomous driving technologies, and consumer pressure for connected features are fueling the North America automotive chip market growth. Major trends observed in the market include AI-based processors implemented for real-time data analytics and increased adoption of zonal architecture vehicles. The scope of the market comprises microcontrollers, sensors, and system-on-chip solutions that are being extensively applied for infotainment, safety, and powertrain systems. Furthermore, companies like NXP, Texas Instruments, and Intel are heavily investing in R&D activities and collaborations with automakers and Tier 1 suppliers to customize and deliver the best-potential, high-performance solutions across the evolving automotive landscape.
Two crucial trends fueling the demand in the North America automotive chip market are autonomous fleet solutions and electrification of commercial vehicles. High-performance chips are widely used to manufacture sensor fusion, decision-making, and real-time data processing for autonomous delivery and ride-hailing fleets. As a result, a demand is generated for dedicated AI accelerators and low-latency processors. Meanwhile, the electrification of commercial vehicles such as trucks, vans, and buses, have huge potential to boost demand in the market. Power management and thermal monitoring chips qualified for the handling of high-load cycles are being increasingly used in commercial vehicles. These two niches substantially open up opportunities for semiconductor companies to develop their respective solutions targeted toward the emerging segment for high growth, while aligning with sustainability, logistics efficiency, and future-ready transportation infrastructure goals in North America.
The key trends of the North America automotive chip market include zonal architecture in vehicle electronics, changing landscape of AI and edge computing in cars, increased attention on cybersecurity, and innovations in electrification and battery management systems.
The automotive industry is increasingly gravitating toward centralized or zonal architecture, shifting away from traditional distributed ones, reshaping the entire North America automotive chip market dynamics. This trend significantly reduces wiring complexity and enhances software-defined vehicle scalability on zonal architectures. The market further observes that the demand is rising for chips with real-time control and high-speed data transmission, such as NXP's S32Z/E series. Companies like General Motors have begun using zonal platforms to handle over-the-air updates, quick diagnostics, and flexible configurations for electric and autonomous vehicles.
Companies in the North America chip market have largely leveraged artificial intelligence (AI) for ADAS, infotainment, and predictive maintenance. Vehicle manufacturers are rolling out AI-enabled chips such as NVIDIA's DRIVE Orin to allow for edge computing that processes data right in the vehicle with little to zero latency. The trend is quite relevant among autonomous test fleets throughout North America. For instance, Tesla and Waymo leverage AI chips to improve on-the-spot decision-making, object recognition, and adapt driving behavior in real time.
As per the North America automotive chip market analysis, vehicles are increasingly becoming more connected to V2X and 5G. This has made hardware-level security a mandatory feature in advanced automotive chips. The industry is concentrating on cryptographic modules and secure boot features. Companies such as Infineon are providing trusted podium module (TPM) aimed specifically at automotive vehicles, while providing immense support for these operations. North American OEMs are taking on these solutions to satisfy ISO/SAE 21434 and UNECE WP.29 standards for secure data communication, software updates, and system integrity across increasingly growing and complex vehicle networks.
The rapid development and proliferation of EVs rapidly raises demand for specialized chips used in battery management systems, power inverters, and motor controllers, boosting the North America automotive chip market development. Companies like Texas Instruments are supplying high-voltage gate drivers and battery management system ICs for security, efficiency, and prolonged life of the battery installations. For example, the Ford Mustang Mach-E uses precision-battery-monitoring chips that improve charging cycles and thermal performance, thereby proving that advanced semiconductors support the rapid move to electric mobility across North America.
Governmental support for automotive innovation and the increased number of consumers demanding safety-enhancing technologies have majorly driven the North America automotive chip market revenue growth. Federal and state initiatives offering financial incentives for smart mobility and modernization of infrastructure have fast-tracked investment in advanced vehicle electronics. For instance, the Biden-Harris Administration announced that the U.S. Department of Commerce and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) are in talks to provide SRC with USD 285 million to establish and operate a Manufacturing USA institute in Durham, NC. This investment, totaling USD 1 billion, will help build the first-ever CHIPS Manufacturing USA Institute. Moreover, the demands of consumers for advanced features such as collision avoidance, adaptive cruise control, and driver monitoring systems have encouraged automakers to produce smart automotive chips. Therefore, this dual push is fostering strong growth for semiconductor companies developing safety-critical and regulation-compliant chip solutions.
Two major opportunities in the North America automotive chip market lie in the expansion of in-vehicle infotainment and customized chips. Consumers are increasingly demanding seamless digital experiences. Chipmakers can take advantage of this trend by designing advanced multimedia processors and connectivity solutions customized for immersive infotainment systems. Additionally, OEMs are increasingly looking for custom silicon to improve the performance of specific applications and differentiate their vehicle performance. Hence, semiconductor firms can forge alliances for design and application-specific integrated circuits (ASICs), strengthening their relevance in the evolving, software-driven automotive eco-system.
The EMR’s report titled “North America Automotive Chip Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Vehicle
Market Breakup by Application
Market Breakup by Country
Market Insights by Type
Analog ICs have increasingly gained traction in terms of the North America automotive chip market shares as these have become indispensable in power management, interfacing sensors, and signal conditioning, particularly in EVs and advanced driver-assistance systems (ADAS). Both microcontrollers and microprocessors have gained increased momentum due to the rising demand for software-defined vehicles. These chips enable real-time control operations along with those of infotainment and safety system operations. Logic ICs, meanwhile, have been gaining in popularity in vehicle communication and control systems, handling complex data processing and integration among various ECUs.
|
CAGR 2026-2035 - Market by |
Type |
| Microcontrollers and Microprocessors |
11.5% |
| Analog ICs |
XX% |
| Logic ICs |
XX% |
Market Analysis by Vehicle
As per the North America automotive chip market analysis, passenger vehicles are driving chip demand from ever-increasing consumer expectations regarding advanced infotainment, ADAS, and electric powertrains. Automakers equip even middle-ranged models with high-end electronics, leading to increased integration of microcontrollers and sensors. On the other hand, the segment of commercial vehicles is growing due to the shift towards electrification combined with fleet automation. Logistics companies have adopted EV trucks and smart fleet systems that require robust chips for power management, connectivity, and telematics, making this segment an emerging focus area for semiconductor manufacturers.
Market Analysis by Application
Powertrain and safety applications boost the automotive chip adoption in North America due to the increased penetration of EVs and regulations focusing on vehicle safety. The market observes an increased number of chassis systems incorporating sensors and controllers into their architectures to allow advanced suspension and steering functions. Telematics and infotainment grow at rapid rates with the increasing needs for connectivity and app-enabled driving experiences. Meanwhile, body electronics including lighting, HVAC, and seat control, have become more advanced. These demand reliable microcontrollers and analog ICs. Each application area reflects the growing complexity of vehicles and evolving consumer expectations for smart, responsive features.
United States of America Automotive Chip Market Opportunities
The automotive chip market of the United States of America is gaining rapid momentum from the advents of EVs and autonomous driving technologies. The increasing demand for safety systems, infotainment features, and connectivity is driving the need for these specialized chips. Moreover, federal encouragements through the CHIPS Act assist in the market growth while bringing focus to local manufacturing and innovation.
Canada Automotive Chip Market Insights
The Canada automotive chip market is growing exponentially with a strong focus on electrification and green mobility. Canadian automakers are investing heavily in EV manufacturing, thereby generating the demand for power management and battery-related chips. Additionally, Canada's push towards smart city infrastructure and connected vehicle systems are fueling the demand for automotive semiconductors.
The North America automotive chip market players are focusing on developing a range of chips, innovating new electric vehicle (EV) components, advanced driver assistance systems (ADAS), and connectivity solutions. Most of the North America automotive chip companies aim at high-performance, energy efficient chip development, resilience in supply chain and partnerships with automakers to cater to the increasing demands for intelligent software-defined vehicles.
Qualcomm Technologies, Inc., established in 1985 and based in San Diego, is a top automotive chip company specializing in next-generation infotainment, advanced connectivity, and autonomous driving technologies. Snapdragon Automotive Platforms at Qualcomm Technologies propel the next-gen in-car experience and connected vehicle technologies.
Renesas Electronics Corporation, founded in 2010, has its head office in Tokyo, Japan. The company deals with microcontrollers, analog ICs, and power semiconductors. Their solutions also include automotive safety, advanced driver assistance systems, and electric vehicles.
Established in 1999, Infineon Technologies AG is renowned for its extensive portfolio of automotive chips. The company provides solutions for powertrain, safety, and electrical performance that also consist of highly performing microcontrollers, sensors, and power semiconductors supporting electric mobility and autonomation.
Established in 1987, STMicroelectronics NV is a worldwide leader in automotive microcontrollers, power management, and sensor solutions. The company’s product portfolio includes a vast range of automotive chips that facilitates electrification, safety, and connectivity in intelligent mobility and electric vehicles solutions.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the North America automotive chip market report are Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors NV, Micron Technology, Inc., Intel Corp., and Rohm Co. Ltd., among others.
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the North America automotive chip market reached an approximate value of USD 14.22 Billion.
The market is projected to grow at a CAGR of 10.70% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 39.30 Billion by 2035.
The major drivers of the market are the acceleration of over-the-air (OTA) software updates, government support for automotive innovation, and the increased number of consumers demanding safety-enhancing technologies.
The key trends of the market include zonal architecture in vehicle electronics, changing landscape of AI and edge computing in cars, increased attention on cybersecurity, and innovations in electrification and battery management systems.
The major countries in the market are United States of America and Canada.
The various types considered in the market report are analog ICs, microcontrollers and microprocessors, and logic ICs.
The various vehicles considered in the market report are commercial and passenger.
The applications considered in the North America automotive chip market report are chassis, powertrain, safety, telematics and infotainment, and body electronics.
The major players in the market are Qualcomm Technologies, Inc., Renesas Electronics Corporation, Infineon Technologies AG, STMicroelectronics NV, Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors NV, Micron Technology, Inc., Intel Corp., and Rohm Co. Ltd., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Vehicle |
|
| Breakup by Application |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share