Legislation, Technology and Consumer Pressures Contribute to Forecasted $51 Billion Market by 2009Boston, MA - August 22, 2005 - Safety systems, such as tire pressure monitors and lane departure warning systems, will be the engine behind continued growth in the automotive electronics market, according to the global research and consulting company Strategy Analytics. Its new report, "Automotive System Demand 2003 to 2012," forecasts that the global market for automotive electronics will rise from $36 billion in 2004 to $51 billion by 2009 - a compound average annual growth rate of 7.4 percent.
Both legislators and consumers place current and future demands on vehicle makers, which can only be met by the increased use of on-board electronics. These influences, together with expanding vehicle production in regions such as China, South Korea and Eastern Europe, will generate new opportunities for vendors in the market for automotive electronic controllers.
"Safety systems show the fastest growth rates," states Ian Riches, Director, Automotive Electronics Service. "Features that are legislated for in some regions - such as tire pressure monitoring - as well as emerging technologies like lane departure warning and blindspot detection systems, are helping to drive up vehicle electronic content," he adds.
By 2009, Strategy Analytics expects the market for safety electronics on light vehicles to be worth over $8 billion, with this sector growing at a compound average annual growth rate of 12.3 percent during the period 2004 to 2009.
World Automotive Electronics Growth by Application
Million $ | 2004 | 2009 | 2012 | CAAGR 2004-09 |
Powertrain | 11,362 | 14,861 | 16,882 | 5.5% |
Chassis | 4,233 | 6,131 | 6,697 | 7.7% |
Safety | 4,661 | 8,315 | 9,988 | 12.3% |
Security | 1,757 | 2,269 | 2,399 | 5.2% |
Body | 6,815 | 9,695 | 10,825 | 7.3% |
Driver Info. | 6,790 | 9,718 | 11,021 | 7.4% |
TOTAL | 35,618 | 50,989 | 57,812 | 7.4% |
% Change | 8.3% | 6.2% | 4.3% | |
Source: Strategy Analytics