Electronics and Semiconductors

Electrification, Emissions Set to Drive Powertrain Chip Market

12 May 2015

The automotive powertrain semiconductor business grew 8.3% to reach an annual value of $7.2 billion in 2014, according to IHS Technology.

Automotive Semiconductor Revenue for Powertrain. Source: IHSAutomotive Semiconductor Revenue for Powertrain. Source: IHSOver the next five years, the powertrain semiconductor market will grow with a compound annual growth rate (CAGR) of nearly 6% taking the annual market to $9.5 billion in 2019, IHS forecasts.

The share of the market represented by electric and hybrid vehicles and stop-start systems will grow from less than $1billion in 2014 to more than $2 billion in 2019 while conventional powertrain semiconductors, although a major application, will show slower than average growth, IHS says.

Electrification is clearly driving the powertrain semiconductor market. Start-stop systems are forecast to grow at a CAGR of 21%, while plug-in hybrid vehicles are expected to have a strong annual growth of 37% for the next five years, IHS says.

In addition, for internal combustion engines, there is an increasing trend away from traditional multi-port fuel injection systems towards gasoline direct injection systems. Direct injection systems are more efficient and require higher semiconductor content than their multi-port counterparts.

Ahad Ahmed Buksh, analyst of automotive semiconductors at IHSAhad Ahmed Buksh, analyst of automotive semiconductors at IHS“Propulsion systems for electric and hybrid vehicles demand, on average, 10 times more semiconductor content than a conventional engine," says Ahad Buksh, automotive semiconductors analyst at IHS, in a statement. "Without electrification, the powertrain semiconductor market would have only grown 3.1 % annually for the next five years, whereas electrification is now accelerating the market at 6 % growth rate annually."

Key technologies that will be included in powertrain going forward include dc/dc converters, battery management, and plug-in chargers, all of which require power management ICs, analog ICs and discrete components.

A second factor driving sales of powertrain semiconductors is legislation on emissions which is being introduced or tightened in most regions around the world. Engine and exhaust monitoring and exhaust after-treatment all require sensors. The market for semiconductors in internal combustion engines was $4.3 billion in 2014, growing to $5.4 billion in 2019, according to IHS.

Additional detail can be found within the Automotive Semiconductor Market Tracker Q1 - 2015.

Questions or comments on this story? Contact: peter.clarke@ihs.com

Related links and articles:

IHS Automotive Semiconductor Research

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