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Strategy Analytics: Economic Recovery & Powertrain Electrification Drive Automotive Electronics Back Into Growth
Auto Electronics Market to Rise to $244 Billion by 2017
Boston, MA - May 26, 2010 – 2009 was a dark year for the automotive industry, with light vehicle output falling by 12% and demand for automotive electronic systems dropping even faster to 15% when demand shifted to smaller, lower-cost vehicles with fewer electronic features. The Strategy Analytics Automotive Electronics Service (AES) report, “Automotive Electronics System Demand Forecast 2008 to 2017: Strong Growth from Weak Base,” predicts a significant recovery in 2010. The market for automotive electronic systems will rise from its 2009 low of $125 billion to reach over $244 billion by 2017.
Aside from the economic recovery, it is advanced powertrain systems that are driving this growth, as vehicle manufacturers seek to improve the fuel efficiency of their vehicles to meet increasing legislative and consumer demand.
“Strategy Analytics expects to see the value of powertrain Electronic Control Units (ECUs) installed in light vehicles grow at a compound average annual growth rate of 14% over the period 2009 to 2014 – outpacing the overall market growth of 11%,” stated Ian Riches, Director, Global Automotive Practice.
“While the number of hybrid and electric vehicles sold will remain relatively low, the demand for electronics for these vehicles will grow to around 20% of the demand for powertrain electronics by 2014. This strong growth in demand is due to the much higher electronics content in these vehicles,” explained Chris Webber, VP Global Automotive Practice.
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