Narrative: 2026 Q1 Automotive Sensor Demand 2023 to 2032

Q1 2026 update to the Automotive Sensor Demand Forecast revises market outlook to $38.5B by 2032, reflecting vehicle production growth, memory constraints, and new regulations.

The Q1 2026 update to the TechInsights Automotive Sensor Demand Forecast has been published in the Automotive Electronics Online Data Report. This narrative highlights the key changes. Overall demand has been revised modestly higher, with the 2032 market now forecast to reach $38.5 billion, up 1.3% from the previous quarter, reflecting a 0.8% increase in global light vehicle production, led by China and supported by India. Rising memory demand from artificial intelligence applications is also affecting the automotive sector, with tighter supply and higher average selling prices increasing system cost pressures. As a result, a Memory Shortages scenario has been added to the forecast. Mature market regions are seeing a temporary shift toward hybrid powertrains. Conversely, new Chinese regulations, including mandatory autonomous emergency braking, are expected to support long‑term growth.