The increasing amount of electronics in automotive vehicles is driving the growth in automotive electronics industry. According to Databeans, the global automotive electronics market will be valued at $105.2 billion in 2007. This growth will mainly come from the increasing amount of electronics such as engine management systems, in-car entertainment, powertrain and body control, and safety and convenience electronics in automotive vehicles.
The global demand for automotive electronics for OEM use is estimated to grow 7.5% year-over-year to reach about $153 billion in 2011, according to market research firm the Freedonia Group (
Table 1.)
In the Asia-Pacific region, demand for automotive electronics for OEM use is estimated to reach $55.4 billion by 2011, accounting for about 36% of the global value. (
Fig. 1.)
This is forecast to grow to $80.1 billion in 2016, up from $36.25 billion in 2006 (
Fig. 2), with engine and drivetrain applications leading the automotive electronics segment, followed by safety and security applications.
While the demand for automotive electronics for OEM use in South Korea is estimated to increase to $7.7 billion in 2011 (
Fig. 3), its share in the Asia-Pacific market will slide from 15.6% in 2006 to 13.8% in 2011, according to the Freedonia Group. This is due to growing adoption of electronic systems in vehicles in, as well as the faster pace of transfer of automotive technology to, the emerging markets in the region.
India, for instance, will account for 6.8% of OEM automotive electronics demand in Asia-Pacific in 2011, up from 4.9% market share in 2006, as the country transitions to production of modern light vehicles, reports the Freedonia Group. According to iSuppli, the country’s automotive electronics market will grow to $4.5 billion in 2010, from $1.7 billion in 2005. Gartner reports that the legislation pertaining to passenger and vehicle safety, which is expected to take effect by 2010, will help to further stimulate the growth in India’s automotive electronics segment. Stricter emission requirements and new engine-management technologies is also forecast to drive the region’s automotive sensor market, which will have a CAGR of 34% during the 2005-2010 period.
In China, iSuppli predicts that with the rapid development of automotive electronics systems, production will double to $18.4 billion in 2011.
For the remainder of the Asia-Pacific region—which includes Taiwan, the emerging markets of Indonesia, Malaysia, the Philippines, Singapore, Hong Kong, Cambodia, Vietnam, Laos, and New Zealand — demand for automotive electronics for OEM use will increase 17% year-on-year to reach $2.52 billion in 2011, accounting for 5.3% of the Asia-Pacific’s total. (
Fig. 3.) Freedonia estimates that Taiwan will remain the leading country in terms of advanced automotive electronics penetration in the sub region.
Overall, this is propelling the growth of semiconductor consumption of automotive electronics systems. According to In-Stat, a higher-than average growth is expected in the semiconductors for automotive electronics, accounting for 8.7% of the global semiconductor segment by 2011.
BCC Research Group forecasts the global automotive semiconductor market to rise to nearly $25 billion in 2009. Leading the segment are microprocessor ICs, memory ICs, and logic ICs.
Frost & Sullivan projects that the ASIC, ASSP, and FPGA market for automotive electronics will grow to $10.26 billion in 2010, up from $6.75 billion in 2006. Automotive microcontroller revenues, meanwhile, will reach $9.52 billion in 2010, up from $5.83 billion in 2006, while the discrete power semiconductor market will be valued at $2.66 billion in 2010.
However, In-Stat reports that in terms of semiconductors consumed in various end-user application segments in Asia, automotive electronics continues to be small. In 2005, the segment’s share was 3.2% in Asia. This is estimated to grow to 3.5% in 2010. (
Fig. 4.)
Automotive infotainment marketThe pervasiveness of cellular networks, the rapid drop in cost of GPS devices, and the rise in full-fledged car computers are providing a new thrust to the development of advanced automotive infotainment technologies. iSuppli estimates the total automotive infotainment segment to break the $50 billion mark in 2012, as consumers continue to generate strong demand for automotive electronics that entertain and inform. The research analyst company estimates the automotive infotainment market to expand at a CAGR of 8% from 2006 to 2013.
One of the hottest segments of the automotive infotainment devices is portable navigation devices, which uses GPS to guide motorists. Databeans reports that in addition to safety and engine-management systems, automotive GPS navigation systems and in-vehicle DVD players are contributing to the growth of the automotive electronics market. iSuppli forecasts the total market shipments of car navigation systems to reach 65.1 million units by 2012, more than three times the 19.8 million units shipped in 2006.
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Figure 1, Figure 2, Figure 3, Figure 4, Table 1
