Strategy Analytics has forecasted automotive semiconductor devices is expected to grow at a CAGR (compound average annual growth rate) of 5 percent over the next seven years, with the total market worth over $41 billion by 2021, compared to $27.5 billion in 2013 due to the trends such as greener, safer, better connected vehicles.
The reasons given by Strategy Analytics for the growth in this market are: Globally legislation of rules related to vehicles emissions and safety is driving adoption of such technologies in automotives.
There is also significant growth in connectivity of car to outer world and also to the cloud and personal portable devices.
The Strategy Analytics analysis finds the demand for microcontroller and power semiconductors will drive over 40 percent of revenues, while light vehicle production in China will drive 20 percent of regional demand by 2021.
"Ongoing research and development to further improve conventional and electrified powertrains and safety enhancing advanced driver assistance systems (ADAS) is fueling growth for high performance processors, additional memory, highly integrated mixed signal ICs and sensor devices including radar and cameras," stated Chris Webber, VP Global Automotive Practice at Strategy Analytics. "The growth opportunity will also be for semiconductors providing wireless connectivity to enable greater levels of future vehicle autonomy and to meet consumer expectations for seamless portable device usage and content delivery in the car," he added.
"The need for intelligent control and power drive within literally dozens of electronic control units, motors and solenoid actuators within a single vehicle accounts for the high revenue share for microcontrollers and power devices," added Mark Fitzgerald, Associate Director, Global Automotive Practice.