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Market for Automotive Semiconductor to Exceed $41 Billion by 2021
Demands for Greener, Safer, Connected Vehicles to Fuel Growth
Boston, MA - May 22, 2014 - The Strategy Analytics Automotive Electronics service report, "Automotive Electronics Semiconductor Demand Forecast 2012 to 2021" predicts that the market for automotive semiconductors will see growth driven by key automotive industry themes of Greener, Safer, Better Connected.
Globally legislation continues to drive the development of next generation vehicle technology offering further enhancements to emissions control and safety. Industry competition and consumer expectations are leading to higher levels of vehicle connectivity to the cloud and personal portable devices. As a result demand for enabling semiconductor devices is expected to grow at a CAAGR (compound average annual growth rate) of 5 percent over the next seven years, with the total market worth over $41 billion by 2021, compared to $27.5 billion in 2013. The Strategy Analytics analysis also identifies that demand for microcontroller and power semiconductors will drive over 40 percent of revenues, while light vehicle production in China will drive 20 percent of regional demand by 2021.
"Ongoing research and development to further improve conventional and electrified powertrains and safety enhancing advanced driver assistance systems (ADAS) is fueling growth for high performance processors, additional memory, highly integrated mixed signal ICs and sensor devices including radar and cameras," stated Chris Webber, VP Global Automotive Practice at Strategy Analytics. "The growth opportunity will also be for semiconductors providing wireless connectivity to enable greater levels of future vehicle autonomy and to meet consumer expectations for seamless portable device usage and content delivery in the car," he added.
"The need for intelligent control and power drive within literally dozens of electronic control units, motors and solenoid actuators within a single vehicle accounts for the high revenue share for microcontrollers and power devices," added Mark Fitzgerald, Associate Director, Global Automotive Practice.
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