The growth is being driven by both additional shipments and rising average selling prices (ASPs) for memory and logic devices, the market researcher said.

Additional systems for convenience and comfort inside the car together with systems to warn, detect and take corrective action are helping produce an automotive chip bonanza.

In recent times the automotive chip market has generally shown strong growth in excess of 10 percent but the market contracted in 2015 primarily as a result of falling ASPs offsetting the steady unit growth for automotive ICs that year.

Automotive IC market by devices type in $millions. Source: IC Insights.

In 2017, increases in DRAM and flash memory prices are expected to help drive the total automotive IC market to an increase of 22.4 percent.

IC Insights now thinks DRAM ASPs will rise by 50 percent in 2017, NAND flash ASPs will increase 28 percent, and the ASP for automotive special-purpose logic devices is going to go up 34 percent.

Collectively, microcontrollers, analog, standard logic, and memory ICs used in automotive accounted for about 8 percent of the total IC market in 2016, but that share is forecast to increase to more than 10 percent in 2020. Over the period to 2020 IC Insights predicts that advanced driver-assistance systems (ADAS) will be the biggest user of automotive ICs. 

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