Automotive IC Market to Display Strongest Growth Through 2018
From luxury to base models, IC content on all new cars is increasing.
Later this month, IC Insights’ new 2015 IC Market Drivers Report will be released. The 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 (Figure 1).
The 2013-2018 automotive IC market CAGR of 10.8% is four percentage points greater than the next closest category—communications—at 6.8% and ahead of the 5.5% 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 (Figure 2) 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% to $21.7 billion in 2014, compared to a 1% 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 (20.0% 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 $2.0 billion in 2014 to $4.2 billion in 2018.
NOTE: IC Insights is currently taking orders for the 2015 IC Market Drivers Report, which will be released later this month. If you need to fully understand the driving forces behind IC market growth, you need to subscribe to the 2015 IC Market Drivers Report.
Report Details: The 2015 IC Market Drivers Report
IC Market Drivers 2015—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits examines the largest, existing system opportunities for ICs and evaluates the potential for new applications that are expected to help fuel the market for ICs.
IC Market Drivers is divided into two parts. Part 1 provides a detailed forecast of the IC industry by system type, by region, and by IC product type through 2018. In Part 2, the IC Market Drivers Report examines and evaluates key existing and emerging end-use applications that will support and propel the IC industry through 2018. Some of these applications include the Internet of Things, automotive electronics, smartphones, personal/mobile computing (including tablets), wireless networks, digital imaging, and a review of many applications to watch—those that may potentially provide significant opportunity for IC suppliers later this decade. The 2015 IC Market Drivers Report is priced at $3,390 for an individual-user license and $6,490 for a multi-user corporate license.
IC Insights, Inc.