World Automotive Semiconductor Markets

Report Highlights

• The $16-plus billion worldwide automotive semiconductor in 2004 will rise at an AAGR (average annual growth rate) of 9% through 2009 to nearly $25 billion.
• In terms of value, MOS micro ICs and MOS memory are the two largest IC product segments. It is estimated 63% of all IC dollars will be spent in these two categories in 2009.
• ICs will show the highest use growth-trend in safety (10.4%), followed by body and chassis, each with AAGRs of 9.8%. In these areas, there is need for accurate, closed-loop, real-time control, necessitating the processing of large volumes of data from multiple sensors.
• Automotive safety represents a growing, and the most stable market for semiconductors due to influence from governments, consumers and the automakers themselves.

INTRODUCTION

Automotive electronics are major criteria of differentiation in the automotive market. Car manufacturers use chips in increasing numbers to develop powerful electronic systems for driver information and communication, in-car entertainment electronics, power train and body control electronics as well as automotive safety and convenience electronics. By 2005, one quarter of the value of the average car will be comprised of electrical and electronics components; half of these will be semiconductors.

Maximizing opportunities in the automotive semiconductor arena is a challenging task. The desperate efforts of companies to safeguard margins along the industry value chain dramatically have changed the competition pattern.

This BCC study focuses on key semiconductor products and key applications in automotives, and provides data about the size and growth of the automotive semiconductor market, company profiles and industry trends. Also this report provides a detailed and comprehensive multiclient study of the market in North America, Europe, Japan, Korea and rest-of-world, and potential future opportunities. This report provides extensive quantification of the many important facets of market developments in automotive semiconductors in the world. This, in turn, contributes to the determination of what kind of strategic response companies may adopt to compete in this dynamic market.

SCOPE OF STUDY

The report contains:

• Examination that covers the many issues concerning the merits and future prospects of the automotive semiconductor
• Market data, quantifying opportunities for automotive semiconductors with forecasts through 2009
• Analysis by semiconductor types
• Corporate strategies, information technologies, and the way to provide these highly advanced product and service offerings
• Detailed coverage of the economic and technological issues critical to the industry’s current state of change
• A review of the automotive specified semiconductor industry and its structure, and the many companies involved
• Discussion of the competitive position of the main players in the market and the strategic options they face.

METHODOLOGY

The research methodology was qualitative in nature and employed a triangulative approach, which aids validity. Initially, a comprehensive and exhaustive search of the literature on automotive semiconductors was conducted. These secondary sources included automotive electronics journals and related books, trade literature, marketing literature, other product/promotional literature, annual reports, automotive analyst reports, and other publications. A patent search and analysis was also conducted.

In a second phase, a series of semi-structured fact finding E-mail correspondence was conducted with marketing executives, product sales engineers, international sales managers, application engineers, and other personnel of the automotive semiconductor companies themselves. Other sources included automotive and electronics magazines published in the U.S., Germany, Singapore, UK; academics, technology suppliers; technical experts; trade association officials; government officials; and consulting companies. These were a rich source of data. Subsequent analysis of the documents and interview notes was iterative.

INFORMATION SOURCES

Initially, a comprehensive and exhaustive search of the literature on automotive semiconductors was conducted. These sources included latest press releases on the company websites including application news, company news, marketing news, product news, brochures, product literature, automotive semiconductor and electronics magazines, technical journals, technical books, marketing literature, other promotional literature, annual reports, security analyst reports, and other electronic publications. There is very little data in the available literature that analyzes the automotive semiconductor as a whole, and the data that do exist, for the most part, present automotive chips as part general-purpose chips. The challenge was to identify the automotive semiconductor market and evaluate how it fits in automotives, globally. An extensive patent analysis was conducted to gauge technological innovation and to determine research activity as it applies to new product development.

The second phase involved formal and informal telephone interviews/E-mails correspondence with personnel in the automotive semiconductor. Suppliers, design engineers, consulting companies, other technical experts, government officials, and trade association officials were also interviewed, as well as the personnel of the OEM companies themselves.

ANALYST'S CREDENTIALS

Analyst B.L. Gupta, Bachelor of Engineering, mechanical engineer, has 33 years R&D experience at key positions and has handled high tech product development in a number of fields. Before starting own consultancy in 2001, Gupta worked with leading ISO-9000 certified and reputed multinational companies. He is a member of the American Society of Mechanical Engineers since 1996; Fellow of Institution of Engineers (India) since 2001; Charter Engineer of Institution of Engineers (India) since 2001; member of Consulting Development Centre, a Government of India society, since 2000; and member of the Bureau of Indian Standards on formulation of national standards on printing presses and allied subjects since 1997.