The global automotive IC market is expected to grow 15 percent, reaching $21.7 billion in 2014, compared to a one percent increase in 2013, according to an upcoming IC Market Drivers Report from IC Insights. The automotive IC market is forecast to grow at a compound annual growth rate of 10.8 percent over the forecast period of 2013 to 2018. This is greater than the 5.5 percent growth forecast for the total IC market over the forecast period.
The CAGR rate for automotive ICs is four percentage points higher than the next fastest growing category of communications ICs, forecast to grow at 6.8 percent. IC Insights analysts attribute the strong growth partly to the fact that this market is growing from a smaller base compared to the communications, computer, and consumer segments and a significant increase in IC content for all new cars from base to luxury models over the forecast period. These growing applications include vehicle-to-vehicle communications, mandatory backup cameras, and various driver assist systems.
The report also finds that analog ICs and microcontrollers (MCUs) are the two largest IC product categories in the automotive IC market. Analysts also forecast that the automotive memory IC market will more than double from an estimated $2.0 billion in 2014 to $4.2 billion in 2018. In addition, Asia-Pacific is forecast to surpass Europe as the largest market for automotive ICs, starting in 2016.
Electronic component manufacturers are keeping pace with the demand for new IC designs for applications ranging from automotive infotainment and dashboards to advanced driver assist systems. Some of the latest designs include Texas Instruments’ first fully integrated high-brightness LED matrix manager IC for adaptive headlight systems, an automotive infotainment companion chip - the TC358791XBG - from Toshiba America Electronic Components Inc. (TAEC) that supports high-resolution multimedia and camera connectivity for next-generation applications in the connected car, and Spansion’s expanded Traveo microcontroller family, aimed at human machine interfaces (HMI) in automotive dashboards. It’s the first time Spansion has integrated its HyperBus interface with its ARM Cortex-R5-based embedded Traveo MCU.
The IC Market Drivers Report covers six major end-use applications including automotive, computer, consumer, communications, industrial/medical, and government/military. It also provides further analysis on the Internet of Things, tablet PCs, smartphones, medical and health systems, wireless networking, and other fast-growing electronic systems.