Automotive IC market surging to $13 billion in 2005
Dec 30, 2005
MCUs and analog ICs dominate the market segment
The automotive IC market is forecast to grow 5.7% to $13.0 billion in 2005, representing 6.8% of the $192.4 billion worldwide IC market, according to a new study by IC Insights. The new report, titled IC Market Drivers, shows the automotive IC market growing 6.9% to $13.9 billion in 2006 and increasing to $19.7 billion, representing 6.7% of the $292.8 billion IC market, in 2009. With a 2005-2009 compound annual growth rate (CAGR) of 11.0%, the automotive IC market will keep pace with overall growth in IC market (11.1% CAGR) during the forecast period.
Analog ICs and MCUs represent the largest segments of the automotive IC market, each accounting for approximately 37% of 2005 sales (Figure 1). The average car carries about 25 MCUs. However, it is not unusual for some higher-end SUVs and luxury cars to be loaded with 100 or more microcontrollers. Besides the usual engine monitoring and systems management applications, MCU are being called upon to monitor the growing number of positional, stabilizing, and other sensor-related applications on-board new cars.
DSPs are being used to track variable valve timing, reducing the need for some ASICs. Designers are also trying to blend DSPs with voice-activation applications. Meanwhile, MPUs will increasingly control synchronization of the fuel injection process, especially in diesel engines, making them run cleaner and quieter.
At least five major factors are contributing to the increased number of ICs used on-board the automobile: Technology - as IC technology advances, component costs are lowered; Competition - carmakers are increasingly using electronics as a competitive advantage; Optimized performance (engine, vehicle traction/control/stability); Environmental/legislative mandates; and Ergonomics/Safety - collision avoidance, navigation, ABS, airbags, etc.
The 2006 edition of IC Insights' Integrated Circuit Market Drivers (formerly known as the Emerging IC Markets report) provides a study of emerging and major end-use applications fueling demand for ICs in the second half of this decade. Packed with numerous tables providing 10,000 market data points, the IC Market Drivers report is available in both a three-ring binder and on CD-ROM, priced at $2,485 for the first bundled set. Additional individual copies of the disk or binder sell for $495 each. A single CD-ROM or binder copy is available for $1,990 each. The report is also available under a multi-user corporate license for $5,290.