Automotive market drive Semiconductors sales

16 November, 2015

IC Insights: "A significant increase in semiconductors content is expected onboard all new cars, from luxury level to base models"

IC Insights: “A significant increase in semiconductors content is expected onboard all new cars, from luxury level to base models”


From 2014 through 2019, the automotive IC market (semiconductors) is forecast to increase at an average annual growth rate of 6.7%. Ggreater than the 4.3% CAGR forecast for the total IC industry, and the highest among the six major end-use IC applications: computer, consumer, communications, automotive, industrial/medical, and government/military.

According to 2016 IC Market Drivers Report made by IC Insights, a significant increase in IC content is expected onboard all new cars—luxury level to base models. Systems that provide partial or high automation and that may lead to fully autonomous vehicles are boosting total IC content per automobile.

The computation load of next-generation advanced driver assistance systems (ADAS) jumps very quickly with every attempt to widen the sensing range, boost detection precision, and execute more powerful algorithms to respond to many different driving conditions.

In 2015, IC Insights estimates that automotive IC sales will represent 7.3% of the total $287.1 billion IC market. Yet, despite its fast growth, automotive IC sales are not forecast to account for much more of the total IC market than they do today.  The automotive IC market is expected to represent 8.1% of the total $358.7 billion IC market in 2019. Falling average selling prices continue to offset steady unit growth—particularly among automotive analog, MCU, and special purpose logic devices.

Other highlights from IC Market Drivers Report includes: Following a 1% decline in 2015, the automotive market is forecast to grow 7% to $22.2 billion in 2016, and continue increasing to $29.2 billion in 2019. Asia-Pacific will surpass Europe as the largest market in 2015, and is forecast to be the strongest region for automotive IC market growth through 2019.

Analog ICs (44%) and MCUs (30%) are forecast to remain the two largest IC product categories within the 2015 automotive IC market. The automotive memory IC market is forecast to more than double from an estimated $1.6 billion in 2015 to $3.5 billion in 2018.

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