News
Optimism among CIOs at the biggest companies was higher than in the previous two quarters, suggesting seasonal strength among the biggest companies as the year ends, said Deutsche Bank, which cosponsors the poll.
The rigid board book-to-bill ratio rose 0.04 points to 1.06, and the flex circuit book-to-bill ratio was up 0.04 points to 1.05. The overall ratio was also 1.05, up 0.03 points. The ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period. A ratio of more than 1.0 suggests probable near-term growth.
Year to date, rigid PCB shipments are up 10.6%, and bookings are up 13.8%. Flex circuit shipments are up 4.5%, bookings are down 8.4%.
Combined shipments in August increased 9.3% from a year ago and bookings increased 9%. Year to date, combined shipments are up 10.2%, bookings are up 12.1%. Rigid PCBs make up an estimated 85% of the North American market, IPC said.
The data reflect sales, not production, IPC notes. For the month, 89% of the PCB shipments reported were produced in the U.S. or Canada. Furthermore, about 26% of the flex circuit sales comes from value-added services.
The previous record for one-month worldwide chip sales was $20.4 billion in November 2005.
“The Indian automotive electronics industry is expected to achieve such robust
growth, despite challenges such as a cost-sensitive Indian market, poor
infrastructure and corrupt bureaucracy,” said Jagdish Rebello, Ph. D., director
and principal analyst for iSuppli Corp.
“One of the emerging trends in the Indian automobile industry is the
development of a mushrooming automotive electronics market inside the motor
vehicle segment,” Rebello added.
Today, the automotive body electronics and automotive sensor areas represent 1%
and 6%, respectively, of India’s
overall automotive electronics market. Government initiatives toward safety and
environmental issues and the overall shift in customer preferences to
technologically-superior automobiles are expected to push tremendous growth in
those segments, however.
Engine management systems, such as ECU and fuel-injection technology, account for 45% of the power-train segment, which dominates the Indian automotive electronics market. India’s market for power-train electronics is expected to grow at a CAGR of 17.3% from 2005 to 2010.
Technologies such as Multi Point Fuel Injection (MPFI), Common Rail Direct Injection (CRDI) and piezoelectric fuel injection systems are being rapidly adopted in Indian automobiles.
If government initiatives such as its vehicle safety policy are implemented, rapid growth in the safety and control segment can be expected. The market for safety electronics is expected to expand at a CAGR of about 50% from 2005 to 2010. Indigenous safety system manufacturers, such as Sona Koyo Steering Systems Ltd. and Sundaram Clayton Ltd., will derive the maximum benefit from this development.
While automotive engine management and safety systems will be the main market drivers for Indian automotive electronics, production of cutting-edge digital instrumentation and electronic ignition systems is on the rise. These systems are being used in high-end motorcycles—which iSuppli includes in its automotive forecasts—including Hero Honda Group’s Karizma and Bajaj Auto Ltd.’s Pulsar DTS-Fi.
Market players, such as Minda Huff Ltd., also have launched state-of-the-art security systems for motor vehicles. Some of them include ultrasonic movement detectors and digital key immobilizers.
CD/MP3 players are expected to dominate the car-entertainment segment, with cassette players losing their market share. The increased influence of global players like Sony and Pioneer Electronics will also strengthen the market for DVD players in India, which is currently in the nascent stage.
Much of this technological innovation is being brought to market from distribution networks that are playing a vital role in the Indian automotive electronics industry. These distribution networks bridge the gap between unorganized segments—which include relatively smaller, indigenous electronic system manufacturers—and the players at the apex of the automotive value chain, such as automotive system OEMs, design houses and vehicle OEMs. Global dealers, such as Avnet Inc. and Arrow Asia Pac Ltd., maintain a significant presence in the Indian automotive electronics market.
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