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IC Insights predicts 12% automotive IC market growth in 2011

Posted: 02 Mar 2011 ?? ?Print Version ?Bookmark and Share

Keywords:automotive IC? IC Market Drivers? 2011 outlook?

IC Insights, in their IC Market Drivers report, predicts that the rapid motorization of China and other emerging markets along with the recovery of the U.S. automotive market, coupled with growing demand for on-board electronics, will help propel the automotive IC market to $17.2 billion in 2011. This is an increase of 12 percent, following a 45 percent increase in automotive sales in 2010 that halted a two-year decline in automotive IC market.

According to the report, global shipments of new cars are expected to rise almost 5 percent in 2011 to 55.8 million units. The U.S. auto market is emerging from recession. Meanwhile, China outpaced new car shipments in the U.S. by 50 percent in 2010 and is expected to continue to do so until 2015.

Growth drivers for ICs include active safety and telematics systems, communications and entertainment convergence, and green initiatives such as energy savings and reduced emissions.

In safety and telematics, systems such as self parking, active cruise control, lane departure warning systems, and electronic stability control have been implemented in Japan and Europe. An ESC system consists of a gyroscope, an accelerometer, and a pressure sensor. These can be made using microelectromechanical system (MEMS) process.

Automakers are testing system that will allow smartphones to dock with a large display on a car's center console, essentially replacing radio/CD/nav systems on today's cars.

Electric and hybrid cars are not expected to contribute significantly to the automotive IC market in the immediate future. Shipments of hybrid and electric vehicles are forecast to increase 8 percent in 2011.

The automotive IC market is forecast to grow to $20.9 billion through 2014, representing an average annual increase of 14.5 percent per year from 2009 to 2014. That growth rate tops the IC growth rate in other system markets including computer (11.7 percent), communications (8.1 percent) and consumer (10.6 percent) systems, as well as the total worldwide IC market (10.6 percent) over the same period.

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