The global automotive semiconductor market will reach $18 billion in 2006

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The global automotive semiconductor market will reach $18 billion in 2006 [Copy link]

According to the latest survey of "Automotive Semiconductor Demand Forecast 2004-2013" released by Boston market research company Strategy Analytics, the global automotive semiconductor market will reach $18 billion in 2006, a 10% increase over 2005. The report shows that by 2013, planned improvements in automotive performance, features and safety will bring automotive semiconductor revenue to $29 billion, allowing semiconductor suppliers in this field to thrive during this period and for a period of time thereafter.

According to the report, the continuous penetration of electronic systems in automotive applications and increasingly advanced control functions will accelerate the growth of semiconductors, and its growth rate will even exceed the growth rate of automobile production. Global light vehicle production capacity is expected to grow at a compound annual growth rate of 3.6% from 2005 to 2010. In addition, as automakers continue to introduce new electronic control functions to meet increasingly stringent environmental regulations and consumers' higher requirements for vehicle performance, comfort and infotainment systems, automotive semiconductor revenue during this period will rise at a compound annual growth rate of 8.2%, more than twice the growth rate of light vehicle production capacity.

Chris Webber, vice president of the Automotive Practice at Strategy Analytics, said that in order to meet increasingly stringent emissions and safety regulations, as well as to cope with competitive pressures and changing consumer expectations, vehicle OEMs need to continue to innovate technology, which has driven up demand for a variety of semiconductor components.

Chris Webber also said that the next generation of vehicle powertrains, advanced safety controls, and the integration of infotainment will require higher performance from processors and memory. Cost and miniaturization issues in areas such as tire pressure monitoring will increase the demand for specialized devices. Other new safety requirements - such as lane departure warning systems - are also increasing market demand for sensors, including camera ICs. The growing demand for transmissions used in comfort and convenience systems such as vehicle temperature control and seat adjustment, as well as the development of new technologies such as active steering and adaptive headlight control systems, are also driving demand for power semiconductors.