Saturday, February 26, 2011

Automotive IC Market Would Expect to Grow 12% in 2011

According to the latest IC Market Drivers report, global shipments of new cars are expected to rise almost 5% in 2011 to 55.8 million units. Meanwhile, sales of new cars in China outpaced new car shipments in the U.S. by 50% in 2010; a trend that is expected to continue through 2015.
The new demand on Automotive markets in China, emerging Southern America along with recovering U.S. These new Automobile shipments, increased on-board-electronics would boost automotive IC sales up to as much as 12% in 2011, to estimated $17 billion.

This follows a 45% increase in automotive IC Sales in 2010, which halted a two year slide in this IC sector.
Automobiles are a fertile environment to implement new and innovative electronic systems and ICs. Many of these systems are competitive selling points for automakers. Growth drivers for ICs over the next several years include active safety and telematics systems, communications and entertainment convergence, and "green" initiatives such as energy savings and reduced emissions. These technologies are increasingly available as standard equipment on new cars across all price ranges.
In the area of safety and telematics, systems such as self parking, active cruise control, lane departure warning systems, road tracking system, Gear tooth sensor, speed sensor, temperature sensor, air bag sensor, fuel injection control sensor, electronic stability control--ESC, etc…have been widely implemented in modern cars.

New trend for Luxury car would go for as many as 12 air bag and air belts that would incur a lot of additional electronics and control.

There is not much innovative changes in the basic engine design, the Hybrid car is still in very early stage of penetration, all it take at least 10 more years to see a reasonably number of cars running on road, starting in the congested cities of Asia, Europe and America. In fact, relatively stable gasoline prices led to a decline in hybrid vehicles sales in 2010. Recent Middle East event would force for a rise of Gasoline price. And urge for an early Hybrid Automotive market development. Shipments of hybrid and electric vehicles are forecast to increase a modest 5% in 2011.
However the electronics on board an automotive would becomes sophisticated. There are at least 350 LEDs as an average compact car. Full LED head lamps is not a sales gadget for Luxury car, but for a better outlook design, power saving, long life time, faster response. This involves a lot of associated electronics, control modules required including LED driving IC, dimming control IC, Switching mode control ICs for the power converter, and light control multiplex ICs.
Many of these systems will soon be required for all new cars sold in the U.S. An ESC system typically consists of three sensors--a gyroscope, an accelerometer, and a pressure sensor--all of which can be made using a microelectromechanical system (MEMS) process.

Automakers are testing systems that will allow smartphones to dock with a large display on the car's centre console allowing the driver to access the Internet, listen to his or her stored favourite music, and send text messages through a large, onboard touch-screen rather than using the phone itself, and essentially replacing radio/CD/nav systems on cars sold today. On board GPS is a standard accessory on a luxury car.

Through 2014, the automotive IC market is forecast to grow to $21 billion, representing an average annual increase of 14% per year from 2009 to 2014. That growth rate tops the IC growth rate in all other system markets including computer (12%), communications (8%), and consumer (10%) systems, and the total worldwide IC market (10%) over the same time frame.


In Short, the ICs demand for Automotive would increase 12% in 2011.

HK Snob

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