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Auto Electronics Focus of electronica 2008
August 4, 2008 |Estimated reading time: 2 minutes
MUNICH, Germany electronica 2008 will be a world showcase for automotive electronics, with an expected 1,200 automotive electronic exhibitors, an automotive conference, and discussions on the "Ultra Low Cost Car (ULCC)" concept.
The electronics market for the ULCC costing between $2,000 and $5,000 is becoming highly important. In early 2008, Tata Motors ushered in the era of the ULCC when it launched the Tata Nano, the "One Lakh Car." Strategy Analytics forecasts the annual growth rate for ULCC to be about 25% per year from 2010 to 2015 compared to 3% for the average sedan weighing less than 3.5 tons.
The fast-developing countries of China and India will drive demand for the ULCC to almost 7 million vehicles by 2015. Affordable ULCCs are expected to satisfy a new market of buyers consisting of the expanding middle class and current cyclists. Frost & Sullivan estimates that "small cars" represent about 75% of the total number of cars in these growing countries. Total market volume of 1.15 million cars (2007/2008) will rise to 2.1 million by the end of 2009/2010.
The enormous growth of ULCCs in the Asian market will impact the remaining automotive electronics market. Although current ULCC vehicles such as the Tata contain very few electronic elements compared with average American and European vehicles, the low cost electronic devices intended for the ULCC will inevitably find their way into more conventional cars.
The combination of ULCC electronics plus the increasing use of electronics in more conventional cars, for example to comply with emission regulations and satisfy customer demands, will cause electronics growth rate to exceed the automobile growth rate according to an estimate by Strategy Analytics. For example, electronic control units (ECUs) in ULCCs will average 36% growth per year between 2010 and 2015 and peak at a market volume of more than $2 billion (see Fig 1). By contrast, the total market for ECUs in this 5-year period will only grow on average by 5% and to $72 billion in 2015.
The nexus of automotive knowledge at electronica 2008 is the automotive conference held on November 10 and 11, 2008. Approximately 1,200 exhibitors will present products and applications relating to automobile electronics. The conference, the trade fair and the "Automotive" Focus Area in Hall A6, which will include a separate exhibition and speakers' forum, will combine theory and practice - a unique learning opportunity for the electronics and automotive industries.
Under the title "electronics meets automotive," speakers will present strategies, trends, and technology during the two-day conference. The speakers typically include key representatives from BMW, Delphi, Sharp, Valeo, Volvo, ELMOS Semiconductor, Freescale Semiconductor, Panasonic Industrial Europe, STMicroelectronics, and Tyco Electronics AMP.
Ian Riches from Strategy Analytics will also present a special talk entitled "Ultra Low Cost Cars Opportunities and Challenges." In this presentation, he describes the future opportunities of automobile electronic suppliers and semiconductor manufacturers and the applications that will lead the field. While safety systems and hybrid vehicles drive electronics growth in established automobile markets, simple power train, comfort and infotainment functions will drive electronics growth in fast-developing countries.
To view conference schedules, see www.media.nmm.de, or visit www.electronica.de.