Automotive semiconductor market set for strong 2011

The market analyst has updated its 2011 IC Market Drivers report and raised its forecast for average semiconductor content per automobile to $350 this year. This represents a 15% increase from an average of $305 in 2010. IC Insights reports that semiconductor content per vehicle in expected to increase an average of 9% annually between 2010 and 2014, rising to $425 per vehicle at the end of the forecast period. It cites the convergence of communications and entertainment features, safety and telematics and green initiatives as a growth driver. Safety features are required on most new vehicles sold in Europe, US and Japan. In Europe, tyre pressure sensors will be a requirement on all new cars sold after 1 November 2011, which could boost the applications of tyre pressure monitoring systems. This happened when the US instigated the requirement in 2006. From 2012, electronic stability control systems will be required for all new cars sold in the US, while rear facing cameras will soon be mandated features for cars sold in the US. According to IC Insights, connectivity and onboard telematics are growing as essential selling points for new car buyers and as a result built in Bluetooth technology has become commonplace. The analyst believes that centre stack displays that replicate a driver's smartphone screen and onboard charging pads for portable electronics devices will soon be standard equipment on many new cars.