Sales of automotive electronic systems are forecast to increase 7.0% in 2018 and 6.3% in 2019, the highest growth rate in both years among the six major end-use applications for semiconductors. Â Figure 1 shows that sales of automotive-related electronic systems are forecast to increase to $152 billion in 2018 from $142 billion in 2017, and are forecast to rise to $162 billion in 2019. Â Furthermore, automotive electronic systems are expected to enjoy a compound annual growth rate (CAGR) of 6.4% from 2017 through 2021, again topping all other major system categories, based on recent findings by IC Insights.
Overall, the automotive segment is expected to account for 9.4% of the $1.62 trillion total worldwide electronic systems market in 2018 (Figure 2), a slight increase from 9.1% in 2017. Automotive has increased only incrementally over the years, and is forecast to show only marginal gains as a percent of the total electronic systems market through 2021, when it is forecast to account for 9.9% of global electronic systems sales. Â Though accounting for a rather small percentage of total electronic system marketshare in 2018, (larger only than the government/military category), automotive is expected to be the fastest-growing segment through 2021.
Technology features that are focused on self-driving (autonomous) vehicles, ADAS, vehicle-to-vehicle (V2V) communications, on-board safety, convenience, and environmental features, as well as ongoing interest in electric vehicles, continues to lift the market for automotive electronics systems, despite some highly publicized accidents involving self-driving vehicles this year that were at least partly blamed on technology miscues.
New advancements are more widely available onboard mid range and entry-level cars and as aftermarket products, which has further raised automotive system growth in recent years. Â In the semiconductor world, this is particularly good news for makers of analog ICs, MCUs, and sensors since a great number of all of these devices are required in most of these automotive systems. It is worth noting that the Automotiveâ€”Special Purpose Logic category is forecast to increase 29% this yearâ€”second only to the DRAM market, and the Automotiveâ€”Application-Specific Analog market is forecast to jump 14% this yearâ€”as backup cameras, blind-spot (lane departure) detectors, and other â€śintelligentâ€ť systems are mandated or otherwise being added to more vehicles. Â Meanwhile, memory (specifically, DRAM and flash memory) is increasingly playing a more critical role in the development of new automotive system solutions used in vehicles.