Electrification, safety will pull automotive semi market free from Covid-19
Electrified powertrains and safety systems will underpin a return to growth as well as longer term opportunities, says a recent report from Strategy Analytics (Automotive Semiconductor Demand Forecast 2018-2028). These two large application markets will collectively grow at a CAAGR of over 13 % over the 2019 – 2024 timeframe and accounting for over 50 % of the automotive semiconductor market in 2024.
“Covid-19 will significantly impact automotive semiconductor demand in 2020, with recovery hampered by a staggered return to normal vehicle production across the major vehicle production regions”, notes Asif Anwar, report author.
On a positive note, the automotive semiconductor industry was already riding a wave of demand from electrification and ADAS (Advanced Driver Assistance Systems) technologies before the Coronavirus crisis hit the industry. This effect will support the industry in its return to a normalcy, albeit at a lower baseline, predicts Anwar. Moreover, this trend will continue and drive up the average semiconductor content per vehicle through 2027.”
The study provides an analysis of global semiconductor unit and revenue opportunities in Powertrain, Chassis, Safety, Body and Driver Info domains for the key regional markets, as well as detailing demand major product component categories.
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