What’s Driving Automotive Electronics?

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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.

Read the September Issue of SMT Magazine Here


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