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Automotive Semiconductors to Reach $73 Billion by 2023
November 7, 2018 | Semico ResearchEstimated reading time: 1 minute
Automotive electronics are a bright light for the semiconductor industry, as smartphone growth slows, and personal computing growth continues to decline. The expectation is that automotive electronics will become the next big technology market driver. The automotive semiconductor market will exceed the overall industry growth as semiconductor content expands with added features and functionality. The desire to put self-driving vehicles on the road is creating increased interest in innovative automotive solutions as well as increased semiconductor demand. A new research report from Semico Research, Automotive Semiconductors: Accelerating in the Fast Lane, states that the automotive segment of the semiconductor industry will grow to $73 billion by 2023.
"There are a number of challenges in the automotive industry that are unique for the system developers to navigate. Autonomous driving is a critical one," says Jim Feldhan, President of Semico Research. "Many people feel AI is the key to the success of autonomous driving. Autonomous driving includes the ability to have optical character recognition, i.e. reading signs, distinguishing a sign from a person, and determining if the brakes should be turned on. Security surveillance, computer vision, virtual reality and image processing, real-time diagnosis and corrective solutions and strategic map planning are critical to autonomous driving. Increasing levels of processing are required as these systems become more sophisticated."
Key findings in the report include:
- The TAM market for automotive IP processor royalties will grow to $2.34 billion by 2023.
- A fully autonomous vehicle (L5) is expected to require 74GB DRAM and 1TB NAND memory.
- Powertrain requires the highest compute function and carries the highest ASP.
- Revenue generated from processors in Autonomous Driving Systems will reach $422 million in 2018.
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