Automotive Semiconductor Demand to Grow at More Than Double Vehicle Production Rate

October 14th, 2005

A new study, “Automotive Semiconductor Demand Forecast 2003 - 2012,” indicates that the market for automotive grade semiconductors in 2005 will reach $16.3 billion, a year-on-year growth of 7.2 percent. The study predicts that planned enhancements to vehicle performance, features and safety will drive automotive semiconductor revenues to $25.7 billion by 2012, ensuring steady growth to automotive semiconductor vendors throughout this decade. This study also found that semiconductor-based sensors will provide the highest growth in demand.

Light vehicle production is expected to grow at a CAGR (Compound Annual Growth Rate) of 3.6 percent over the period 2004 to 2009. Over the same period, the study predicts that automotive semiconductor revenues to grow by more than double that rate at 7.8 percent CAGR, as vehicle makers introduce electronically controlled innovations in order to meet tightening environmental and safety legislation and respond to consumer expectations of enhanced performance, comfort and infotainment.

What’s the impact of this trend on test? Well, for starters, end-of-line testing is going to become more complex. Ensuring that all the vehicle’s sensors are connected and functioning is going to be necessary to ensure that the car runs right.

For design engineers, this trend means that simulation is going to become more complex. The simulation systems they use will have to deal with the added complexity of more sensors and systems. And for the simulations to be effective, accurate models will have to be available for these sensors.

The study was done by Strategy Analytics, Boston, MA. For more information, including the chart, “Automotive Semiconductor Application,” go to the Strategy Analytics website.

Entry Filed under: Simulation, Test Software