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Automotive electronics market to reach $244B by 2017

Wednesday, May 26, 2010
By Gina Roos

strategyanalyticslogoBoston, Mass. — The automotive electronic systems market dropped 15 percent in 2009 when demand shifted to smaller, lower-cost vehicles with fewer electronic features, according to a report from Strategy Analytics. However, the market researcher forecasts a significant recovery in 2010.

The report, “Automotive Electronics System Demand Forecast 2008 to 2017: Strong Growth from Weak Base,” forecasts that demand for automotive electronic systems will increase from its 2009 low of $125 billion to more than $244 billion by 2017.

In addition to the economic recovery, demand is being fueled by advanced powertrain systems, as vehicle manufacturers seek to improve the fuel efficiency of their vehicles to meet increasing legislative and consumer demand, according to Strategy Analytics.

“Strategy Analytics expects to see the value of powertrain electronic control units (ECUs) installed in light vehicles grow at a compound average annual growth rate of 14 percent over the period 2009 to 2014 — outpacing the overall market growth of 11 percent,” said Ian Riches, director of Strategy Analytics’ Global Automotive Practice.

“While the number of hybrid and electric vehicles sold will remain relatively low, the demand for electronics for these vehicles will grow to around 20 percent of the demand for powertrain electronics by 2014. This strong growth in demand is due to the much higher electronics content in these vehicles,” said Chris Webber, vice president of Strategy Analytics’ Global Automotive Practice, in a statement.

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