About Automotive IC
IC (Integrated circuits) is a set of electronic components and circuits on a semiconductor material normally silicon. These integrations of large numbers of transistors into small chip results into an order of magnitude smaller, cheaper, and faster as compared to discrete electronic components. ICs are defined by the size of individual component and the density of each component. The feature size for IC refers to the smallest dimension in the device. Ideally, ICs will have dimensions of tens of nm. The demand for ICs in automotive is increasing due to the growing concern of safety and governments regulations. The automotive IC suppliers face challenges like high voltage capability, protection against short circuit, unfavorable temperature, good electromagnetic capability.
Technavio’s analysts forecast the global automotive IC market to grow at a CAGR of 6.61% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global automotive IC market for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price of the product.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Automotive IC Market 2017-2021
Technavio recognizes the following companies as the key players in the global automotive IC market: Atmel, Infineon Technologies, NXP Semiconductors, and ST Microelectronics
Other Prominent Vendors in the market are: ON Semiconductor, Texas Instruments, Microchip Technology, and TOSHIBA.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Emergence of IoT. Companies are investing heavily in IoT as it is one of the key interests of buyers and investors. Connected cars have potential growth and significant opportunity. Currently, automakers are integrating IoT through two approaches: embedded and tethered. While the former approach connects the drivers through embedded chipsets and built-in antennas, the latter uses hardware to connect to drivers' smartphones. The growing adoption of sensors and real-time tracking is contributing to the global automotive IC market while increasing the applications of IoT.”
According to the report, one of the major drivers for this market is Rapid electrification of automobiles. The dropping price of ICs and increasing demand for electronics in the vehicle, growing demand for powertrain systems that require sensors, microcontrollers, and analog converters have led the growth of automotive IC market. Electrification of the drivetrain, vehicle intelligence (such as active safety innovations and connectivity enhanced driving), and consumerization of auto electronics are the major factors fostering the growth of the automotive semiconductor market.
Further, the report states that one of the major factors hindering the growth of this market is Complexity in automotive IC design. One of the major challenges for automotive IC is its design complexity. Generally, microprocessors contain many transistors and lengthy copper lines. Additionally, the transistors should be highly reliable. The design chain of automotive IC is much more complex than those of mobile phones or electronic home appliances, such as televisions and remote controllers. This makes the designing of highly reliable automotive ICs a difficult task.
Atmel, Infineon Technologies, NXP Semiconductors, and ST Microelectronics, ON Semiconductor, Texas Instruments, Microchip Technology, and TOSHIBA.
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