The automotive IC market will grow the most by 2024, but it will still not become the main terminal market

IC Insights recently released a report stating that the automotive IC market will show a strong average annual growth rate in the next few years, but the market share will still be less than 10% by 2024; and the communications and computer fields will still be the largest application areas for integrated circuits.

According to the report, from 1998 to 2019, the world's major IC terminal markets mainly covered consumer electronics, automobiles, computers, industry, communications and other fields. Among them, the market share of PC-related ICs has shrunk significantly; while the demand for mobile communication ICs has gradually expanded, and the market share has almost doubled, but it has also begun to decline in 2019; and the automotive IC market is the only application field that has maintained positive growth.

Image source: IC Insights

IC Insights said that although the computer IC market share has decreased by 20 percentage points in the past 21 years, the Internet of Things is expected to inject new vitality into the field and slow down the rate of market share decline in the next five years as it drives up demand for servers.

In addition, the automotive IC market has been showing a steady growth trend. The report predicts that the market will achieve a compound annual growth rate of 9.7% from 2019 to 2024, the strongest growth among all terminal market segments. However, IC Insights also believes that considering the relatively small size of the automotive IC market, even such a high growth is not enough to significantly increase the growth rate of the overall integrated circuit in the next five years.