Connected car tech growing fast with semi-conductor market @ 31B in 2015

The automotive semi-conductor market showed a 10% percent growth year over year to reach $29 billion in 2014. iHS predicts that by 2015 the automotive semiconductor market reach $31 billioin, a strong 7.5 percent improvement over 2014.

Infineon in 2014 had double digit revenue growth with a strong presence in Powertrain, Chassis and Safety and Body and Convenience products. It is rated number one by iHS (see chart below).

IHS reported that the fastest growing segments for automotive semiconductors are hybrid-electric vehicles, telematics and connectivity and advanced driver assistance systems (ADAS).

Emissions legislation is leading semiconductor take rates in powertrain applications in regions around the world.

Safety mandates and guidelines are driving the adoption of ADAS technology. To meet safety requirements automakers are offering ADAS applications such as Lane Departure Warning (LDW), Forward Collision Warning (FCW) and Automatic Emergency Braking (AEB). These features may use a front view camera module  radar and lidar modules, creating a potential for semiconductor growth. More computer power is needed for these features.

The semiconductor market for ADAS technology is expected to reach $1.8B in 2015, a 21 percent increase over 2014.

The infotainment system and head-units is the high-definition video functions will contribute to semi-conductor growth as well as smartphone integration.

More consumer electronic suppliers are entering the automotive industry, including nVidia, which is estimated to have grown more than 80 percent in 2014.

4G LTE technology will continue to grow in 2015.

The trend is moving from conventional analog instrument clusters to hybrid and fully digital instrument clusters, mainly for high-end vehicles but should be coming to more vehicles in the future.

Source: IHS