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Automotive IC market to grow 8 percent in 2012
Demand for semiconductors by automakers will rise through 2015 because of increased chip content in cars
Rising electronics content in automobiles will help drive the automotive integrated circuit market through 2015.The worldwide automotive integrated circuit (IC) market will grow 8 percent to $19.6 billion in 2012, up from $18.2 billion in 2011 due in part to growing electronics content in automobiles, according to a new report by researcher IC Insights.
The researcher reported that the automotive IC market will grow 11 percent per year through 2015 when the market reaches $27.3 billion.
Growth in automotive IC demand will be fueled by rising semiconductor content per vehicle, which will increase from $350 in 2011 to $380 in 2012. Semiconductor content per vehicle is expected to increase 11 percent annually between 2009 and 2015 when content will total $495 per vehicle, according to IC Insights.
IC demand growth will also be driven by hybrids and electric vehicles, although they currently only account for about 2 percent of total vehicle sales, the researcher noted. That percentage could increase as car buyers trade in older cars for more fuel efficient hybrids and EVs.
Electric vehicles and hybrids contain more semiconductors than gasoline powered cars, according to IC Insights. By 2015, electric vehicles will contain about twice as much semiconductor content as standard cars.