Automotive IC Industry sets record in its third consecutive year by reaching $32.3 Billion
Last year, the automotive chip market which was worth $27.2 billion, this time the market is on pace which is expected to grow by 18.5 percent to reach $32.3 billion in 2018 the current record for the segment of the size of the automotive, according to the market research firm IC Insights. This would set a new all-time high record for the automotive IC market for the third consecutive year.
An article published by IC Insights said growth in the automotive chip market this year has been driven once again by automation in the form of systems monitoring and control, safety, ADAS and convenience resulting to an increase in development of the autonomous driving. The rate being taken into consideration is 12.5 percent between 2017 to 2021 the size of the automotive IC market is expected to continuously increase at a compound annual growth rate of 12.5 percent reaching $43.6 billion in 2021 as per expectations.
The firm also noted that features are being added to new cars each year in consumer demand and government mandates for electronic systems that improve the safety, comfort and convenience.
7.5 percent of the total Automotive IC market this year is expected to account a growth. That being said the firm forecasts that this percentage will rise to 9.3 percent in 2021. The market grew by 11.5 percent in 2014, then declined by 2.5 percent in 2015 before rebounding with growth of 10.6 percent in 2016 said the firm.
IC Insights noted the continued rise of the average selling prices for memory chips is also boosting the automotive IC market and that the automotive IC market has experienced extraordinary growth swings over the past few years.
Fall in average selling prices across key automotive IC product categories, including microcontrollers, analog ICs, DRAM, flash, and general- and special-purpose logic ICs, which offset steady unit growth for automotive ICs that year was due to the result of market decline in 2015.
According to IC Insights’ forecast analog chips are expected to account for 45 percent of the 2018 automotive IC market, with microcontrollers capturing 23 percent of the total share.