Strategy Analytics: automotive semiconductor market to grow by CAGR 9.3%

With the global automotive semiconductor market worth US$23.7 billion in 2011, the megatrends of environment, safety, information and the need for affordable cars for emerging markets market will drive market revenue Compound Annual Growth Rate (CAGR) of 9.3% over the five year period 2011 to 2016, says Strategy Analytics, Inc..

The Strategy Analytics Automotive Electronics Service (AES) report, "Automotive Semiconductor Demand Forecast 2010 - 2019", predicts a surprising 11.5% growth in automotive semiconductor demand for 2012, in view of more modest industry predictions for growth this year in the total global semiconductor market.

Semiconductor demand from vehicle production growth in North America, Japan, Thailand and the BRIC (Brazil, Russia, India and China) regions this year will more than compensate for the decline observed in Europe, resulting in revenues of US$26.4 billion. Expanding adoption of electronically controlled features in both mature and emerging vehicle markets is contributing to the long term growth outlook.

"The automotive semiconductor revenue growth in 2012 is largely due to improvements in the North American and China markets, plus the industry recovery rebound from natural disasters in Japan and Thailand in 2011. Electronics innovations in areas like hybrid and pure electric vehicles, advanced safety, connected car and driver information will be responsible for sustaining long term automotive semiconductor growth," stated Chris Webber, Vice President Global Automotive Practice at Strategy Analytics.

Mark Fitzgerald, Associate Director Global Automotive Practice added, "Clearly there is a degree of uncertainty in a number of regional markets, with the ongoing Eurozone sovereign debt crisis having the greatest potential to undermine the short term outlook."