Automotive Segment to Drive Growth in a Semiconductor Market
2016 automotive semiconductor foresee
In a prior partial of this series, it was mentioned that the automotive and industrial sectors would drive expansion in a semiconductor industry. Automotive semiconductor income has grown during a CAGR (compounded annual expansion rate) of 8% between 2002 and 2012, according to McKinsey.
However, this growth has slowed, from 7.3% in 2014 to 5.7% in 2015, and it is approaching to be 3.7% in 2016, according to Reportlinker. The slack is attributed to a strengthening of a US dollar and an approaching 2% fall in China’s automotive market.
However, IC Insights expects a automotive shred to grow during a CAGR of 6.7% between 2014 and 2019, a fastest among all semiconductor finish user applications.
The automotive semiconductor marketplace has witnessed converging in 2015. NXP Semiconductors (NXPI) acquired Freescale, and ON Semiconductors (ON) acquired Fairchild Semiconductors (FCS) in 2015. Qualcomm (QCOM) and Nvidia (NVDA) also entered this space to boost revenues.
Automotive semiconductor products
There are 5 forms of automotive semiconductors:
- Power semiconductor – Infineon leads this market, followed by STMicroelectronics (STM) in second place.
- Sensor semiconductor – Sensata leads this market, followed by Bosch in second place.
- Processor semiconductor – Renesas leads this market, followed by Freescale in second place.
- ASSP (application specific customary product) semiconductor
- Logic semiconductor
The semiconductor calm in vehicles is increasing, with mid-range cars containing $350 value of semiconductor content. The automotive semiconductor’s product life cycle is extensive and complex, so creation automakers demure to switch semiconductor suppliers, as it entails high switching costs. Moreover, a supply agreements are for longer terms, so shortening a risk of losing business to competitors.
Key expansion drivers for automotive semiconductors
Vehicle expansion – An boost in a direct for vehicles will boost a direct for automotive semiconductors. China’s (FXI) automotive sales are approaching to grow during 11.2% CAGR during 2014–2019, according to PricewaterhouseCoopers (or PwC).
Semiconductor calm expansion – An boost in a semiconductor calm in vehicles will expostulate growth. HEVs (hybrid and electric vehicles) poise a singular expansion opportunity, as glimmer control policies are enlivening adoption of such vehicles. PwC expects semiconductor calm sales for HEV to grow during a CAGR of 20.5% during 2014–2019.
Application expansion – New semiconductor record that offers some-more applications can expostulate direct for automotive semiconductors. According to IHS, wiring in HEV, telematics and connectivity, and ADAS (advanced motorist assistance systems) are the fastest-growing segments.