Automotive IC market to display strongest growth through 2018

USA: IC Insights’ new 2015 IC Market Drivers Report contains analyses on automotive electronics, the Internet of Things, tablet PCs, smartphones, medical and health systems, wireless networking, and many other mature and emerging electronic systems.

The upcoming IC Market Drivers Report finds that of the six major end-use applications for ICs, (computer, consumer, communications, automotive, industrial/medical, and government/military) it is the automotive IC market that is forecast to experience the strongest average annual revenue growth rate through 2018.

The 2013-2018 automotive IC market CAGR of 10.8 percent is four percentage points greater than the next closest category—communications—at 6.8 percent and ahead of the 5.5 percent anticipated growth for the total IC market during this time.

The strong CAGR for automotive ICs is partly due to the fact that this market is growing from a smaller base compared to the communications, computer, and consumer segments and partly because a steady and significant increase in IC content is expected onboard all new cars—luxury level to base models—throughout the forecast period. Vehicle-to-vehicle communications, mandatory backup cameras, and various driver assist systems will keep the automotive IC market dynamic through 2018.

Other highlights about the automotive IC market revealed in the new 2015 IC Market Drivers Report include the following:

• The total automotive IC market is expected to grow 15 percent to $21.7 billion in 2014, compared to a 1 percent increase registered in 2013.

• Asia-Pacific is forecast to surpass Europe as the largest market for automotive ICs beginning in 2016 and is forecast to be the strongest region for automotive IC market growth through 2018 (20 percent CAGR).

• Analog ICs and MCUs remain the two largest IC product categories within the automotive IC market.

• The automotive memory IC market is forecast to more than double from an estimated $2 billion in 2014 to $4.2 billion in 2018.