Increasingly, consumers are looking for, and willing to pay for, newer and cooler features and advances in safety and security. Electronic components are a critical part of those designs, which translates to strong growth in the global automotive electronics market.
Vehicle data recorder systems, emergency call systems, and alcohol ignition interlocks will fuel market demand, according to market research firm Global Market Insights (GMI). The European regulatory framework mandates Tire Pressure Monitoring Systems (TPMS) and Antilock Braking Systems (ABS) in cars sold in that geography, pushing even more electronics into cars. Meanwhile, MP3 players, satellite radio, internet, navigational services and rear-seat entertainment systems are just a few of the entertainment options that boost electronic content in autos. “Automotive electronics market for entertainment system is expected to generate a value of more than $86 billion by 2024,” GMI said.
Of course, these trends are going to boost electronic content in all kinds of cars. The automotive semiconductor market is expected to reach $48.78 billion by 2022, at a compound annual growth rate (CAGR) of 5.8% between 2016 and 2022, according to a recent report titled Automotive Semiconductor Market from Markets and Markets. “The most significant factor driving the automotive semiconductor market is the increasing vehicle production which, in turn, is leading to the rise in demand for automotive semiconductors,” the report said. “Rising trend of vehicle electrification and growing demand for advanced safety, convenience, and comfort systems are the other factors driving the growth of the semiconductor content in the automobiles.”
Here are a few market high points from Kevin Anderson, senior analyst, power semiconductors for IHS Market:
- Power semiconductors (including power discretes, power modules and power integrated circuits) are expected to grow at a 7% CAGR from 2017 to 2023.
- In 2017, the average number of advanced driver assistance systems (ADAS) installed in vehicles (such as blind spot information, adaptive cruise control, lane departure warning, rear automatic braking, etc.) are 1.6 per vehicle but that figure will rise to 3.8 by 2023.
- Powertrain modules will grow at a 10% CAGR related to growth in the number of power inverters, converters, chargers and auxiliary systems in the powertrain segment of the automobile. “Revenue from power ICs in those systems will grow at a CAGR of 9%, power discretes will increase 11%, and power modules will rise 32%,” Anderson said.
- Unit shipments for power semiconductors used in automotive infotainment systems will grow 7% from 2017 to 2023.
The infographic below from Dryve outlines some of the upcoming automotive features that will be putting more electronic components and systems into the latest and greatest cars.
— Hailey Lynne McKeefry, Editor in Chief, EBN