The North America automotive chip market is undergoing rapid expansion, driven by increasing vehicle electrification, connectivity solutions, and advanced driver-assistance systems (ADAS). According to Expert Market Research (EMR), the market was valued at USD 14.22 billion in 2025 and is projected to reach USD 39.30 billion by 2035, growing at a CAGR of 10.70% over the forecast period of 2026-2035.Get a Free Sample Report with a Table of Contents: Click Here
Market Drivers
The surge in demand for over-the-air (OTA) software updates is a key growth driver. Automotive chips play a crucial role in enabling continuous vehicle connectivity, real-time software upgrades, remote diagnostics, and optimized vehicle performance. Additionally, the rise of connected and autonomous vehicles is boosting the need for high-performance, reliable chips capable of supporting complex electronic systems.
Challenges and Restraints
Despite growth prospects, the North America automotive chip market faces challenges such as global semiconductor supply constraints, rising production costs, and evolving regulatory standards. Manufacturers must navigate these obstacles while ensuring chip reliability and compliance with stringent safety protocols.
Emerging Trends and Opportunities
Several trends are shaping the market landscape. The integration of AI and machine learning in automotive chips is enhancing predictive maintenance and vehicle intelligence. Furthermore, the adoption of electric and hybrid vehicles continues to drive demand for energy-efficient chips. The increasing prevalence of OTA software updates and connected car ecosystems offers long-term opportunities for chip manufacturers and automotive technology providers.
Market Segmentation and Regional Insights
EMR’s report provides in-depth analysis by chip type, vehicle type, and application. Passenger vehicles, commercial vehicles, and electric vehicles present distinct growth avenues. Regionally, the U.S. dominates the market, supported by strong automotive manufacturing, tech adoption, and government incentives for connected vehicle technologies. Canada and Mexico are also witnessing steady adoption of advanced automotive chips.
Competitive Landscape
The North America automotive chip market is highly competitive, with key players investing in R&D to develop innovative solutions and expand their market footprint. EMR’s research includes a detailed competitive landscape, featuring market positioning, product portfolios, and strategic initiatives of leading companies.
Why Choose EMR
Expert Market Research delivers comprehensive, data-driven insights with global coverage and precise forecasting. EMR empowers B2B decision-makers with tailored research solutions, helping businesses capitalize on opportunities in complex and rapidly evolving markets like North America’s automotive chip sector.