According to Frost & Sullivan, the proliferation of electronic content in automobiles aimed at reducing human errors as well as the growing number of automobile safety features such as additional radars, ultra sonic sensors, cameras, and automatic parking assistance are increasing demaind for microcontrollers. In addition, the introduction of multiplexing in the automotive industry has triggered sales of high performance microcontrollers by amplifying the need for additional processing power and intelligence. According to a Frost & Sullivan report, the automotive microcontroller market generated revenues of $5.83 billion in 2006 and will reach $9.52 billion in 2010.
Other findings of the World Markets for Microcontrollers in Automotives report include:
- The sales growth for hybrids and electric vehicles will likely drive the microcontroller market.
- Increasing automobile sales, especially in the Asian sub continent, will drive the microcontrollers market to greater heights.
- The oil crisis and pollution control have forced power train applications to include stringent methods for controlling emissions and fuel combustion. Since these applications utilize microcontrollers to process information, these environmental and government regulations will spur microcontroller growth.
- The strong quality requirements and extensive quality certifications required for product introductions will adversely affects lower bit microcontroller manufacturers who lose their market shares to higher bit microcontrollers. Lower bit microcontroller manufacturers can counter by focusing on developing countries with high growth potential.
- Automotive manufacturers can increase revenues by working with semiconductor manufacturers to clearly identify difficulties. This collaboration helps reduce the gap between the expected solution and the actual solution provided. By improving cooperation, the lead-time for new technology adoption can drastically reduce due to the higher level of confidence among automotive and semiconductor manufacturers.
Frost & Sullivan