Increasing Adoption of New Automotive Electronics Will Continue to Drive Auto Semiconductor Market, According to New ABI Study.

Business & High Tech Editors

OYSTER BAY, New York--(BUSINESS WIRE)--Nov. 14, 2002

The semiconductor content of an average vehicle will continue to grow exponentially, stemming from a barrage of new, advanced safety, engine and chassis control technologies in new vehicles over the next few years.

According to a new report by Allied Business Intelligence Inc. (ABI), the global automotive semiconductor market, driven by these new systems, will grow from a projected value of $12.3 billion in 2002, to just over $17 billion by 2007. The largest target application for automotive silicon is body and chassis control, which includes electronic traction, suspension and stability control systems. This segment commands approximately 26% of the automotive semiconductor market and will be worth $4.4 billion in 2007.

"Despite a decrease in global vehicle production, the growing demand for automotive-specific semiconductors will continue and the adoption of new automotive electronic systems will be driven by differing factors worldwide," said Frank Viquez, Director of Automotive Electronics Research at ABI. "In the US, new government legislation mandates that automakers implement advanced airbag safety systems and tire pressure monitoring systems into future car lines. Also, new car and light truck rollover testing methods adopted by the NHTSA (National Highway Traffic Safety Administration) is expected to influence carmakers to install electronic stability control systems to gain better ratings."

In Europe and Asia, smaller engines are the norm and there is a pronounced need to match their performance with those of larger displacement engines. To maximize the performance of these smaller engines, cutting-edge engine management technologies including displacement on demand (DoD), variable valve timing (VVT), and direct fuel injection are being aggressively rolled out in these regions, according to the report.

The new report, "Automotive Electronic Systems: Emerging Markets for Powertrain, Safety, Chassis Control and Infotainment Systems And Their Effect On Semiconductor Demand," explores the proliferation of electronics into the automotive platform, with a special focus on microcontrollers. The report provides a comprehensive overview of growing automotive technologies, including VVT, DoD, collision avoidance systems, telematics, 42-volt power systems and x-by-wire.

Allied Business Intelligence Inc. is an Oyster Bay, NY-based technology research think tank that publishes research and technology intelligence on the wireless, broadband, electronics, networking and energy industries. Details may be found at www.alliedworld.com or by calling 516-624-3113.