Strategy Analytics' (www.strategyanalytics.net) "Automotive Semiconductor Demand Forecast 2004 - 2013" estimates that the market for automotive grade semiconductors in 2006 will reach $18 billion, reflecting 10% year-on-year growth. Planned enhancements to vehicle performance, features and safety will drive automotive semiconductor revenues to almost $29 billion by 2013.
Growth in electronic system penetration and increasingly sophisticated control functions will accelerate semiconductor growth well above vehicle production expansion levels, according to the research firm. Global light vehicle production is expected to grow at a compound annual growth rate (CAGR) of 3.6% from 2005 to 2010. In that same time frame, as vehicle makers introduce electronically controlled innovations in order to meet tightening environmental and safety legislation, automotive semiconductor revenues are likely to grow at an 8.2% CAGR, or more than double the vehicle production rate.
"Vehicle OEMs will need to continually innovate in order to meet tightening emissions and safety legislation, and to respond to competitive pressure and changing consumer expectations. This is driving up demand in all semiconductor component areas," said Chris Webber, vice president of Strategy Analytics’ Automotive Practice.
"Next-generation powertrain, safety control sophistication, and convergence in infotainment, will demand higher performance processor and memory capabilities,” Webber said. “Cost and miniaturization issues in areas such as legislation-driven tire pressure monitoring are boosting demand for application specific devices. Other new safety demands, such as lane departure warning systems, are driving up the sensor business, including camera ICs. Power semiconductor demand is being assisted by the growing number of actuators in comfort and convenience systems such as climate control and seating, and new developments like active steering and adaptive headlamp control systems," he said.