MUNICH, Germany As does the market for cars, the market for automotive semiconductors will see a steep decline in the current year. But the increasing electronics content for the vehicles will feed the recovery, says market researcher Databeans.
The Databean analysts expect the market volume for automotive-related semiconductors to decline 25 percent in the current downturn. Having reached a volume of $20 billion in 2008, it will take some time to get back up to this level, since technology suppliers will be hit even worse than automotive OEMs. By 2014, the market volume will reach about $22.5 billion. This equals a CAGR of 8.5 percent from 2009 through 2014.
Nevertheless, increasing electronics content as a consequence of new telematics, infotainment and safety applications, environmental regulations and the efforts to improve fuel efficiency along with the creation of alternative drive technologies will form a "lifeline for the semiconductor industry", as the market researcher puts it. The average vehicle electronic content will rise from its current level of 13 percent of the car's value to 14.8 percent in 2012. Beneficiaries will be suppliers of microcontrollers, analog circuitry and sensors, Databeans estimates.
In terms of market share, Freescale leads the pack with currently 9.5 percent, followed by Infineon with 7 percent and STMicroelectronics which also commands 7 percent of the market. Renesas and NXP hold 6 percent each, Bosch group has 5 percent. The large rest of about 60 percent is shared by other market participants, a clear hint to the high degree fragmentation in this market.