Friday, May 31, 2024

Market for power semiconductors in cars to rev up by $3B

The global market for power semiconductors used in cars and light passenger vehicles will grow by more in $3 billion in the next six years, according to new a report by research firm IHS Markit.

KL_connected cars

The report forecasts the total market for power semiconductors (discretes, power modules, and power ICs) to increase from $5.5 billion in 2016 to more than $8.5 billion in 2022. Revenue will grow at an annual rate of 7.5 percent from 2015 to 2022, the report predicted.

“Increasing electrification in vehicles generally — and in hybrid and electric vehicles specifically — is energizing the market for power semiconductors in vehicles,” said Richard Eden, senior analyst for power semiconductors for IHS Markit.

“Staying connected via smartphones and tablets is the modern way of life and to this end, today’s car drivers are opting for Bluetooth, cellular technologies and other telematics functions. All these features require power semiconductors to distribute and control power through vehicles.”

Also contributing to the rise of power semiconductors, the report noted, is the automotive industry’s mission to offer self-driving, “green” and connected cars in the next decade.

According to the study, intermediate safety milestones such as automatic emergency braking (AEB) and platooning are necessary to realize a road system that will accommodate self-driving cars.

Other factors in the trend toward more power semiconductors: the need for more fuel-efficient systems, a higher proportion of electric vehicles, and more electronic content per vehicle as required for improved vehicle emission levels.

Anticipated growth in sales of hybrid and electric vehicles in the next few years will spur power semiconductor sales to climb by CAGR 9.6 percent from 2015 to 2022 across all vehicles, taking powertrain’s market share up to 54 percent of the total market, according to the report.

Subscribe

- Advertisement -spot_img

RELEVANT STORIES

spot_img

LATEST

- Advertisement -spot_img