LONDON – Findings from a recent report show recovery for the automotive semiconductor market in 2010, and steady growth for much of the decade, with sales forecast to rise to more than $35 billion in 2017, says Semicast.
 
The automotive semiconductor market is expected to have fallen 17% in 2009 to $15.8 billion, the largest-ever one-year revenue decline, says the firm.
 
The decline the past two years can be directly attributed to a fall in light vehicle production, according to Semicast. Global production also peaked in 2007, at around 67 million units, but fell to 54 million in 2009.
 
Global production is forecast to recover to 61 million in 2010, with strong growth in China, India and Brazil, stabilization in Europe and Japan, and recovery in North America.
 
Global light vehicle production is forecast to rise steadily over the medium term, to around 85 million in 2017; over this period, China is forecast to emerge as a key player, with production in China projected to exceed Japan in 2012 and North America in 2016.
 
As global light vehicle production recovers, so too will automotive semiconductor sales, says the research firm. Semicast forecasts growth in the automotive semiconductor market of 16% this year, with sales rising to $18.4 billion.
 
A key factor is the use of electronics in almost all the main systems in the vehicle.