Stringent Quality Requirements Promote Development of High-Performance Automotive Semiconductors
PALO ALTO, Calif.--Oct. 1, 20041, 2004--The increasing penetration of electronic control units in the North American light vehicle market has set the pace of growth for automotive semiconductors. Semiconductor manufacturers are expected to invest more in research and the equipment for designing high-quality products.New analysis from Frost & Sullivan (www.semiconductors.frost.com), North American Passenger Car Semiconductor Markets, reveals that the market earned revenue of $3.69 billion in 2003. It is estimated to reach $4.83 billion in 2007.
Original equipment manufacturers (OEMs) and system integrators emphasize on zero defective parts per million, and hence, tier II suppliers of automotive semiconductors are expected to improve their overall quality processes.
Apart from developing reliable products, manufacturers also have to deal with mounting demand for capability integration. After meeting the stringent quality requirements of system suppliers and OEMs, it becomes difficult for tier II manufacturers to lower the costs. The highly competitive nature of the market compels them to absorb these costs.
"Semiconductor manufacturers are expected to provide high-performance, cost-effective solutions that enable feature integration," says Frost & Sullivan Research Analyst Vidhya Jayakrishnan. "They must also differentiate their products to stay competitive."
However, the incorporation of extra electronic applications and features into a single electronic control unit makes semiconductor solutions highly complex. Multi-functional concepts require multiple supply voltages and semiconductor manufacturers are likely to be challenged to produce devices that can integrate all of these varied requirements. They should have the ability to manage multiple supply voltages while making do with less board space occupancy.
With the heightened complexity in networking the devices, electromagnetic interference has become a major concern. Market participants should be keenly focusing on research and development to tackle these issues.
Government regulations on emission standards and low fuel consumption also have a hand in augmenting the integration of electronic systems. The laws play a big part in protecting and ensuring safer drives for vehicle occupants.
Several safety acts have required automakers to install increasing numbers of safety features that create derived demand for semiconductors. Smart airbags, an emerging technology, are activated based on the seat-occupant position, weight, and the severity of the impact.
Another system that is likely to contribute significantly to market revenue is the tire pressure monitoring system, which averts mishaps due to under-inflated or over-inflated tires. Sales of these systems are expected to swell since the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act mandates its installation in every new vehicle from 2004.
The electronic stability program is making a gradual yet impressive progress in the North American light vehicle semiconductor markets, along with anti-lock braking systems. Adaptive cruise control, lane departure warning systems, and night vision are likely to make a breakthrough in the market.
Light vehicles with mechanical systems have made a smooth transition to electronic systems, creating a greater need for microcontrollers and power devices.
"Semiconductors assist in determining the precise fuel/air mixture ratio for reduced emission and maximum efficiency in vehicles," notes Jayakrishnan. "Driven by government laws, automotive semiconductors' revenue growth rates have picked up considerably."
North American Passenger Car Semiconductor Markets, a part of the Total Semiconductor Subscription, provides an overview of the passenger car semiconductors markets in North America. It offers the prospects for various features including powertrain, chassis/body electronics, safety, and driver infotainment. The study illustrates the analyses with graphs comparing revenue, market size, and participant shares. Interviews and executive summaries are available to the press.
If you are interested in an analysis which provides manufacturers, end users, and other industry participants with an overview, summary, challenges, and latest coverage of the North American Passenger Car Semiconductor Markets, then send an e-mail to Julia Paulson - North American Corporate Communications at jpaulson@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, an overview will be e-mailed to you.
Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.
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Keywords in this release: passenger car semiconductor, North America, powertrain, chassis/body electronics, safety, driver infotainment, multiple supply voltages, microcontrollers, electromagnetic interference, smart airbag, tire pressure monitoring system, Transportation Recall Enhancement, Accountability, and Documentation Act, TREAD, electronic stability program, anti-lock braking system, adaptive cruise control, lane departure warning systems, night vision