Multi Protocol Endpoint IP Core for Safe and Secure Ethernet Network
Automotive Electronics System Demand Fails to Boost Automotive IC Market in 2015
Falling ASPs offset strong unit growth in automotive IC market, resulting in 3% decline.
May 10, 2016 -- With discussion increasingly focused on autonomous vehicles and vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, demand is rising for electronic systems to support new, intelligent cars. Meanwhile, older, existing technology on high-end vehicles continues to migrate down to mid-range and low-end cars and technology-based aftermarket products are gaining momentum.
Given all the new electronic systems that have been added to automobiles in recent years, one might reason that this segment accounts for a large share of the total global electronic system sales. That’s simply not the case. On a worldwide basis, automotive electronics represented only 8.9% of the $1.42 trillion total 2015 worldwide electronic systems market, a slight increase from 8.6% in 2014. Automotive’s share of global electronic system production has increased only incrementally and is forecast to show only slight gains through 2019, when automotive electronics are forecast to account for 9.4% of global electronic systems sales. Despite the many new electronics systems that are being added in new vehicles, IC Insights believes pricing pressures on automotive ICs and electronic systems will prevent the automotive end-use application from accounting for much more than its current share of total electronic systems sales through 2019.
Figure 1 shows the quarterly market trends for the three largest automotive IC markets—Analog, MCU, and special-purpose logic. As shown, falling average selling prices in these three segments have largely offset unit growth over the past few years. In 2015, falling ASPs led to a 3% decline in the automotive IC market to $20.5 billion. Based on IC Insights’ forecast, the automotive IC market will return to growth in 2016, increasing 4.9% to $21.5 billion, as currency exchange rates stabilize and additional electronic systems (such as backup cameras) become mandatory equipment on new cars sold in the U.S. The automotive IC market is now forecast to reach $28.0 billion in 2019, which represents average annual growth of 5.8% from $21.1 billion in 2014. Based on IC Insights’ forecast, the 2019 automotive IC market will be 2.6x the size it was in 2009 when the market was only $10.6 billion—its low-point during the great recession.
Figure 1
Analog ICs and MCUs together accounted for 74% of the estimated $20.5 billion automotive IC market in 2015. Demand for automotive MCUs continues to expand as more vehicles are designed with embedded computer systems to address safety and efficiency issues demanded from legislators and consumers. As cars get smarter and more connected, demand is growing for memory and storage to support a wide array of applications, particularly those that require quick boot up times as soon as the driver turns the ignition key. DRAM and flash memory, which receive considerable attention in computing, consumer, and communication applications, are currently much less visible in the automotive IC market but memory ICs are expected to account for 12.0% of the 2019 automotive IC market, an increase from 7.8% in 2015.
Report Details: The 2016 IC Market Drivers Report
Additional details on the automotive IC market are included in the 2016 edition of IC Insights’ IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits. This report examines the largest, existing system opportunities for ICs and evaluates the potential for new applications that are expected to help fuel the market for ICs through the end of this decade.
IC Market Drivers is divided into two parts. Part 1 provides a detailed forecast of the IC industry by system type, by region, and by IC product type through 2019. In Part 2, IC Market Drivers examines and evaluates key existing and emerging end-use applications that will support and propel the IC industry through 2019. Other system application covered include the Internet of Things, smartphones, personal/mobile computing (including tablets), servers, medical/wearable devices, and a review of many applications to watch—those that may potentially provide significant opportunity for IC suppliers later this decade. IC Market Drivers 2016 is priced at $3,490 for an individual user license and $6,590 for a multi user corporate license.
|
Related News
- Microcontrollers Get a Lift from Automotive After 2021 Rebound
- Andes and IAR Systems Enable Leading Automotive-Focused IC Design Companies to Accelerate Time to Market
- The Real Reason Behind the Automotive Industry IC Shortage - A Step-Function Surge in Demand!
- Siemens collaborates with PDF Solutions to boost IC yield and speed time to market
- Automotive IC Market Forecast With Strongest CAGR Through 2024
Breaking News
- Thalia's AMALIA 24.2 introduces pioneering estimated parasitics feature to reduce PEX iterations by at least 30%
- TSMC plans 1.6nm process for 2026
- Qualitas Semiconductor Partners with TUV Rheinland Korea to Enhance ISO 26262 Functional Safety Management System
- M31 has successfully launched MIPI C/D PHY Combo IP on the advanced TSMC 5nm process
- Ceva multi-protocol wireless IP could simplify IoT MCU and SoC development
Most Popular
- Controversial former Arm China CEO founds RISC-V chip startup
- Siemens collaborates with TSMC on design tool certifications for the foundry's newest processes and other enablement milestones
- Credo at TSMC 2024 North America Technology Symposium
- Synopsys Accelerates Next-Level Chip Innovation on TSMC Advanced Processes
- Kalray Joins Arm Total Design, Extending Collaboration with Arm on Accelerated AI Processing
E-mail This Article | Printer-Friendly Page |