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Auto IC market on the road to recovery in 2010
London, England — The automotive semiconductor market shows a recovery in 2010 along with steady growth for much of the decade ahead, with sales reaching $35 billion in 2017, according to a new report from Semicast.
The report, “Automotive Market for Semiconductors,” indicates that the automotive semiconductor market fell by 17 percent in 2009 to $15.8 billion, the largest one-year revenue decline for the market. Historically, semiconductor sales in the automotive sector have consistently increased with only a minor drop in 2001, a year in which the total semiconductor market declined by close to 35 percent, reports Semicast.
The report also shows that automotive semiconductor sales peaked in 2007 at $20.0 billion, but fell in both 2008 and 2009 to a level now twenty percent below the peak. Semicast forecasts an end to the decline, with sales rising in 2010 and steady growth projected for the medium term.
Semicast attributes the decline in the automotive semiconductor market over the last two years directly to a fall in light vehicle production. Global production peaked in 2007, at around 67 million, but fell to 54 million in 2009, said the market researcher.
Semicast said as global light vehicle production recovers, so will automotive semiconductor sales. Semicast forecasts 16 percent growth in the automotive semiconductor market in 2010, with sales rising to $18.4 billion. While still below the peak of 2007, double digit growth will bring welcome relief to many semiconductor vendors, said the market research company.
Global light vehicle production is forecast to recover to 61 million in 2010, with strong growth in China, India and Brazil, stabilization in Europe and Japan and recovery in North America, said Semicast. Global light vehicle production is projected to rise steadily over the medium term, to around 85 million in 2017. Over this period, Semicast expects China to emerge as a key player, with production exceeding Japan in 2012 and North America in 2016.
A key growth factor is the continued rise of electronics in almost all of the main systems in the vehicle, said Semicast. “Automakers remain committed to the adoption of intelligent electronics, which make their vehicles more environmentally friendly and safer to drive, while adding increasingly sophisticated entertainment and navigation systems, as well as mobile connectivity,” said Colin Barnden, principal analyst at Semicast Research and author of the study.
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