Nolan’s Notes: Is Mexico the Pulse of Electronics in the Americas?
Standard of Excellence: Speed vs. Quality in Customer Service
Knocking Down the Bone Pile: Revamp Your Components with BGA Reballing
What’s Driving Automotive Electronics?
September 1, 2015 | Stephen Las Marias, I-Connect007Estimated reading time: 1 minute
In addition to the increasing penetration of EVs and HEVs, the growing demand for advanced driver assistance systems (ADAS) and proliferation of high-end in-car infotainment systems are among the key factors fueling the increase of electronics in cars.
According to market analyst Grand View Research, the global automotive electronics market is forecast to reach $279.96 billion by 2020, up from $161.55 billion in 2013—growing at a CAGR of 8.2% from 2014 to 2020.
One of the automotive segments that is expected to exhibit high growth is the ADAS, mainly due to stringent safety regulations in modern cars. ADAS, as an array of systems and subsystems that incorporates electronic components such as sensors, microcontrollers and software under one roof, is forecast to register market growth of 14.9% CAGR from 2015– 2020, according to research firm IndustryARC.
I recently interviewed Arthur Tan, president and CEO of Integrated Micro-Electronics Inc. (IMI)—the seventh biggest automotive EMS provider in the world (in terms of 2014 revenues)—about the latest developments in their automotive electronics business.
Tan said a vision system is the key to ADAS; and that while we have safety features such as forward-collision warnings, lane-departure warning, adaptive cruise control, and traffic sign recognition today, the next couple of years will see the development of automated braking, steering with forward vision, and GPS connectivity. Tan said that by 2020, cars will be able to accelerate, brake, and steer by themselves—but the driver will still be required in case of emergency or system failure. Beyond 2020, driverless cars are expected to be a norm.
At the moment, IMI is adding production lines for automotive cameras to cater to growing demand in this segment.
However, amid these optimistic forecasts, challenges remain in the automotive electronics manufacturing industry. The high level of complexity of devices and electronics being built into cars and the harsh operating conditions that these products are expected to operate in are some of the key issues that equipment suppliers and automotive OEMs and EMS providers are working hard to address.
This month’s issue of SMT Magazine (as well as its sister publications PCB Design Magazine and The PCB Magazine) features some of the key players in the automotive electronics space, including suppliers and equipment makers, who discuss strategies for success and opportunities for growth in this industry.
Read on to find out what's driving the automotive electronics industry.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
AUMOVIO Expands Manufacturing Plant to Strengthen Automotive Safety Systems Production
10/24/2025 | BUSINESS WIREAUMOVIO, formerly the Automotive group sector of Continental, today announced a $110 million investment to significantly expand its New Braunfels, Texas manufacturing facility.
indie Semiconductor to Acquire Automotive Perception Software Leader emotion3D
08/11/2025 | indie Semiconductorindie Semiconductor, an automotive solutions innovator, announced it has signed a definitive agreement to acquire emotion3D GmbH, a Vienna, Austria-based specialist developer of advanced perception algorithms and software for in-cabin sensing, advanced driver assistance systems (ADAS) and automated driving.
Berg Insight Expects Rapid Adoption of Autonomous Vehicle Technology in the Next 10 Years
06/26/2025 | Berg InsightAccording to a new research report from the IoT analyst firm Berg Insight, 68.6 percent of all sold cars globally fulfilled requirements for SAE level 1 (L1) automated driving and higher levels in 2024.
Ceva Neural Processing Unit IP for Edge AI Selected by Nextchip for Next-Generation ADAS Solutions
04/23/2025 | PRNewswireCeva, Inc., the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, announced that Nextchip has licensed the NeuPro-M Edge AI Neural Processing Unit (NPU) IP for its next-generation advanced driver assistance systems (ADAS) solutions.
Celestica Recognized as One of Canada’s Top Employers for Young People for the Second Consecutive Year
01/24/2025 | Celestica Inc.Celestica Inc., a leader in design, manufacturing, hardware platform and supply chain solutions for the world's most innovative companies, is proud to announce that it has been named one of Canada’s Top Employers for Young People for 2025 by Mediacorp Canada Inc.