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Automotive Electronics CAGR to Grow 8.9% through 2020, says Semico Research

As the semiconductor industry matures, market growth rates have slowed from historic double-digit rates to single-digit compound annual growth rates (CAGR). The overall semiconductor market will grow at a CAGR of 3% over the next 5 years. This trend is anticipated to continue through the next ten-year period as well.  One segment of the market that will exceed the expected industry growth is Automotive.  A new Semico Research report, Making Vehicles Smart:  Auto CPU and IP TAM, suggests that the Automotive Electronics segment will grow at a CAGR of 8.9% through 2020.  
The automotive semiconductor market will exceed the overall industry growth as semiconductor content expands with added features and functionality.  The desire to put self-driving vehicles on the road is creating most of the increased interest in the automotive market and the growing automotive semiconductor demand.  
"At the heart of these systems is a wide variety of microcontrollers and processors that are the brains of the automotive electronic systems," says Jim Feldhan, President.  "Legacy microcontroller architectures are struggling to provide the functionality and, in particular, the necessary security features needed for a modern connected car.  As a result, many new designs are migrating to SOC solutions that utilize third-party IP allowing for a wide range of sophisticated compute requirements and the necessary security."
Making Vehicles Smart:  Auto CPU and IP TAM identifies the companies and the architectures they are utilizing for their automotive designs and quantifies the processor units required in passenger cars and commercial vehicles by these electronic systems:

  • Safety
  • Powertrain
  • Body electronics
  • Comfort and convenience
  • ADS

The report also quantifies the potential total available market for royalties for the processor market into both passenger and commercial vehicles.  A key metric discussed in this report is design starts by nine ASIC types and a forecast for these ASIC shipments for the following automotive categories:
Low-End Passenger Car ASIC Design Starts
Low-End Passenger Car ASIC Unit Shipments (Millions)
Mid-Range Passenger Car ASIC Design Starts
Mid-Range Passenger Car ASIC Unit Shipments (Millions)
High-End Passenger Car ASIC Design Starts
High-End Passenger Car ASIC Unit Shipments (Millions)
Van / Minivan ASIC Design Starts
Van / Minivan ASIC Unit Shipments (Millions)
Commercial Vehicle ASIC Design Starts
Commercial Vehicle ASIC Unit Shipments (Millions)
Automotive Entertainment System ASIC Design Starts
The nine ASIC types quantified in this report are:

  • Analog
  • Gate Array
  • Mixed Signal
  • Adv. Perf Multicore SoC
  • Value Multicore SoC
  • Basic SoC
  • PLD
  • FPGA
  • Structured ASIC

Companies named in this report include:

  • Infineon
  • Intel
  • Mediatek
  • Microchip
  • NXP
  • Qualcomm
  • Renesas
  • STM
  • TI

Related Semico Research:
Licensing, Royalty and Service Revenues for 3rd Party SIP: A Market Analysis and Forecast for 2016
The IP Subsystem Market: An Evolving Landscape
ASIC Design Starts: Automotive on a Fast Track
ASIC Design Starts for 2016 by Key End Market Applications


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