USA: The global market for automotive semiconductors is forecast to grow from $20 billion in 2007 to just over $30 billion in 2015.
With total 2007 semiconductor revenues of around $255 billion, and this suggest the automotive sector accounts for between 7-8 percent of the TAM. Continued semiconductor demand is forecast in each of the main areas of the vehicle, as electronics increasingly pervade the main systems. Accordingly, average semiconductor content per new light vehicle is forecast to grow steadily from around $295 in 2007 to $375 in 2015.
Overall, the highest growth is forecast for semiconductors used in entertainment systems, such as audio, infotainment, navigation and telematics. Here, demand is forecast to grow from $4 billion last year to $7.5 billion in 2015, a CAGR of almost 9 percent.
The evolution of the entertainment system from audio to infotainment to navigation is the key growth driver in this segment, while increased shipments of rear seat entertainment systems, satellite radio and telematics (such as OnStar) will also drive growth.
Although most attention is often paid to trends in the entertainment segment, one of the key conclusions that can be drawn from the study findings is that highest semiconductor demand will continue in conventional "under-the-hood" systems.
Analysis shows that revenues for semiconductors in "under-the-hood" systems accounted for around 80 percent of the total in 2007 and this is forecast to decline only moderately over the period to 2015, to around 75 percent. Report author and principal analyst Colin Barnden commented, "From a revenue perspective, semiconductor suppliers should not overlook the opportunities offered in these conventional but somewhat less glamorous systems."
Growth opportunities in "under-the-hood" systems include:
Body and Chassis: Exterior solid state lighting is one of the key applications for growth, as vehicle makers change from using conventional filament bulbs to LED lighting. Opportunities in door electronics and air conditioning should not be overlooked for steady growth, while parking assist systems (both ultrasonic and camera based) are now gaining rapid adoption.
Powertrain: Continued advancements in engine control systems to reduce tailpipe emissions and fuel consumption continues to be the key growth driver. With emissions regulations continuing to become more stringent around the world, this trend will provide steady growth for semiconductor vendors in powertrain applications for at least the next 20 years.
Safety: Driver assistance systems such as lane departure warning and blind spot detection offer high growth opportunities in the longer term, while electronic stability control (ESC), intelligent airbags and tire pressure warning systems are all seeing growth as a result of changes in legislation making adoption compulsory in regional markets around the world.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site.