Automotive IC market to grow 15%

The total automotive IC market is expected to grow 15% to $21.7 billion in 2014, compared to a 1% increase registered in 2013, according to IC Insights’ 2015 IC Market Drivers Report.

The report analyses the six major end-use applications for ICs, computer, consumer, communications, automotive, industrial/medical, and government/military, and it is the automotive IC market that is forecast to experience the strongest average annual revenue growth rate through 2018. The strong CAGR for automotive ICs is partly due to the fact that this market is growing from a smaller base compared to the communications, computer and consumer segments and partly because a steady and significant increase in IC content is expected on board all new cars - luxury level to base models - throughout the forecast period. Vehicle-to-vehicle communications, mandatory backup cameras and various driver assist systems will keep the automotive IC market dynamic through 2018.

The 2013-2018 automotive IC CAGR of 10.8% is four percentage points greater than the next closest category - communications - at 6.8% and ahead of the 5.5% anticipated growth for the total IC market during this time. Other highlights about the automotive IC market revealed in the new 2015 IC Market Drivers Report include:

• Asia-Pacific is forecast to surpass Europe as the largest market for automotive ICs beginning in 2016 and is forecast to be the strongest region for automotive IC market growth through 2018 (20.0% CAGR).
• Analog ICs and MCUs remain the two largest IC product categories within the automotive IC market.
• The automotive memory IC market is forecast to more than double from an estimated $2.0 billion in 2014 to $4.2 billion in 2018.

IC Insights is currently taking orders for the 2015 IC Market Drivers Report, which will be released later this month.