Automotive Industry’s Demand for Chip Show the Strongest Growth Compared with Other Industry Branches

It is reported that automotive industry’s demand for chip show the strongest growth compared with other industry branches according to IC Insights(market research agency) while traditional demand like computer and consumer markets only show anaemic growth. And as its disproportionally high growth, Asia will surpass Europe as the largest automotive chip market and its CAGR（Compound Average Growth Rate) will get to 10.4%in 2015.

As IC Insights prediction,during the time from 2014to 2019, chip demand from the automotive industry is growing at an average pace of 6.7% per year, which is higher than the CAGR of the overall chip industry (4.3 %)with 2% .
IC Insights makes the entire chip industry into six segments:Consumer,Automotive, Communications, Computer, , government/military and industrial/medical.
The reason why automotive industry keep strong demand for chip is that this market is growing from a smaller base compared to all other market segments save government/military and industrial/medical. Other factors keeping chip demand from this industry high is the sharply rising semiconductor content of increasingly connected and automated. In addition, demand from the automotive industry is relatively steady compared to other industries as a consequence of the long design and production cycles for cars.
According to IC Insights, the computation load of next-generation advanced driver assistance systems (ADAS) jumps very quickly with every attempt to widen the sensing range, boost detection precision, and execute more powerful algorithms to respond quickly and effectively to many different driving conditions.
As IC said,automotive IC sales will hold 7.3% in the overall IC sales in 287.1 billion in 2015.However, despite growing faster than any other terminal, is a rapidly growing application area,expectations of automotive IC sales in the proportion of the overall IC market will not increase too much. In 2019, the automotive IC market is forecast to represent 8.1% of the total $358.7 billion IC market.
The reason why bigger gains in autos share of the total IC market are limited is that ASP( average selling prices) of automotive IC keep falling,particularly among automotive analog, MCU, and special purpose logic devices.Other highlights about the automotive IC market revealed in the new 2016 IC Market Drivers Report include the following:
After registering a 1% decline in 2015, the automotive IC market is forecast to grow 7% to $22.2 billion in 2016, and continue increasing to $29.2 billion in 2019. IC Insights expects Asia-Pacific to surpass Europe as the largest market for automotive ICs in 2015 and is forecast to be the strongest region for automotive IC market growth through 2019 (10.4% CAGR). Analog ICs (44%) and MCUs (30%) are forecast to remain the two largest IC product categories within the 2015 automotive IC market. The automotive memory IC market is forecast to more than double from an estimated $1.6 billion in 2015 to $3.5 billion in 2018.