The global market for power semiconductors used in cars and light passenger vehicles will grow by more than $3 billion over the next six years, according to IHS Markit.
In its report, Power Semiconductors in Automotive – 2017, IHS Markit forecasts the total market for power semiconductors (discretes, power modules, and power ICs) to increase from $5.5 billion in 2016 to more than $8.5 billion in 2022. Revenue will grow at an annual rate of 7.5 percent from 2015 to 2022, the firm predicts.
“Increasing electrification in vehicles generally – and in hybrid and electric vehicles specifically – is energizing the market for power semiconductors in vehicles,” said Richard Eden, senior analyst, power semiconductors, in the report. “Staying connected via smartphones and tablets is the modern way of life and to this end, today’s car drivers are opting for Bluetooth, cellular technologies and other telematics functions. All these features require power semiconductors to distribute and control power through vehicles.”
Also contributing to the rise of power semiconductors, IHS Markit notes, is the automotive industry’s mission to offer self-driving, “green” and connected cars in the next decade. Intermediate safety milestones such as automatic emergency braking (AEB), for example, and platooning are necessary to realize a road system that will accommodate self-driving cars.
There are other factors contributing to the trend toward more power semiconductors. These include the need for more fuel-efficient systems, a higher proportion of electric vehicles on the roads, and more electronic content per vehicle as required for improved vehicle emission levels, according to IHS Markit. There are five functions where power semiconductors will be utilized: Body and Convenience, Chassis and Safety, Infotainment, Powertrain, and Advanced Driver Assistance Systems (ADAS). Of these, Powertrain accounted for 47 percent of the total market for automotive power semiconductors in 2015.