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Car market keeps semiconductor industry afloat

Posted: 12 Nov 2015     Print Version  Bookmark and Share

Keywords:IC Insights  semiconductor industry  automotive  MCU  ADAS 

According to the latest report by IC Insights, the automotive industry's demand shows the strongest growth of all industry segments while traditional demand boosters such as computer and consumer markets only register lacklustre growth. Asia-Pacific logs a surprisingly high growth and is expected to surpass Europe as the largest automotive chip market, added the market research firm.

During the timeframe from 2014 through 2019, chip demand from the automotive industry is growing at an average pace of 6.7 per cent per year, predicted IC Insights. Thus, semiconductor demand from carmakers across the world will be greater than two points more than the CAGR of the overall chip industry which is estimated to be about 4.3 per cent.

The market watchers broke down the entire chip industry by six segments: automotive, computer, consumer, communications, government/military and industrial/medical. The strong demand growth from the automotive industry is owed to the fact that this market is growing from a smaller base compared to all other market segments save government/military and industrial/medical. Other factors keeping chip demand from this industry high is the sharply rising semiconductor content of increasingly connected and automated. In addition, demand from the automotive industry is relatively steady compared to other industries as a consequence of the long design and production cycles for cars.

According to IC Insights, 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 quickly and effectively to many different driving conditions.

IC market growth rates by end-use application

IC Insights revealed that the automotive industry's demand shows the strongest growth across the industry while traditional demand boosters such as computer and consumer markets show lacklustre growth.

In 2015, IC Insights estimates that automotive IC sales will represent 7.3 per cent of the total $287.1 billion IC market. Yet, despite growing at a faster annual rate than other end-use segments, automotive IC sales are not forecast to account for much more of the total IC market than they do today. In 2019, the automotive IC market is forecast to represent 8.1 per cent of the total $358.7 billion IC market. Falling average selling prices continue to offset steady unit growth, particularly among automotive analogue, MCU and special purpose logic devices. This effect has mitigated bigger gains in autos share of the total IC market.

The report also indicated that after registering a one per cent decline in 2015, the automotive IC market is forecast to grow seven per cent to $22.2 billion in 2016, and continue increasing to $29.2 billion in 2019.

IC Insights expects Asia-Pacific to surpass Europe as the largest market for automotive ICs in 2015 and is forecast to be the strongest region for automotive IC market growth through 2019 (10.4 per cent CAGR). Analogue ICs (44 per cent) and MCUs (30 per cent) are forecast to remain the two largest IC product categories within the 2015 automotive IC market. In addition, 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.

- Christoph Hammerschmidt
  EE Times Europe





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