Automotive Systems Forecast to Show Strongest Growth Through 2020

7 November, 2016

The demand will grow in an annual growth rate of 4.9% through 2020. The demand for computer components is forecasted to grow at a slower rate of 1.5%

The demand will grow in an annual growth rate of 4.9% through 2020. The demand for computer components is forecasted to grow at a slower rate of 1.5%

ic-insights-06112016A report by research group IC Insights shows that the market for automotive electronic systems is expected to display the strongest cumulative average growth rate (CAGR) through 2020, at 4.9%, highest among the six main electronic system categories.

Safety and convenience systems are essential features that consumers look for and want in their new car.  Automatic emergency braking, lane departure/blind spot detection systems, and backup cameras are among the most desired systems.  For semiconductor suppliers, this is good news as analog ICs, MCUs, and a great number of sensors will be required for these and other automotive systems throughout the forecast.

These are good news for the global semiconductor industry, which has witnessed a cool down in demand for components in several sectors, mainly the PC and mobile markets. The ongoing downward trend in pricing is also hurting the chip manufacturers, and could be offset by a strong growth in demand. Nevertheless, it is important to remember that although autonomous driving is the current buzz – chips for the automotive industry account for 7.9% of global chip demand estimated at a staggering $290 billion. The automotive sector’s share in global demand is not expected to rise beyond 10% by 2020.

Hit by slowing demand for personal computing devices (desktops, notebooks, tablets), the market for computer systems is forecast to show the weakest growth through 2020.  The total computer IC market is forecast to decline 2% in 2016 following a 3% drop in 2015.  Asia-Pacific is forecast to hold a 66% share of the computer IC market in 2016 and a 71% share in 2020.

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Posted in: Automotive , Autonomous Car , News , Semiconductors