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Ihs technology press release -china auto chip use al-jcDocument Transcript
China Automotive Semiconductor Market Drives Up 11 Percent in
2013, Thanks to Safety and Navigation Features
El Segundo, Calif. (Feb. 26, 2014)—The fast-growing semiconductor
market for China’s automotive industry is set for double-digit expansion in
revenue this year, propelled by an increasing desire among Chinese car
buyers for added vehicle safety features and helpful infotainment
applications like car navigation, according to a new report from IHS
Technology (NYSE: IHS).
Chip consumption in 2014 by the country’s automotive industry will amount
to $4.6 billion, up a solid 11 percent from $4.1 billion last year. This year’s
projected revenue growth improves on the already strong 10 percent rise of
the China automotive chip market in 2013, and three more years of similar
notable increases will take place. By 2017, revenue will reach $6.2 billion,
as shown in the attached figure.
“The replacement of midrange and high-end cars this year will drive the
China chip market for automobiles,” said Alex Liu, analyst for China
research at IHS. “In particular, demand will be great in vehicle safety and
control applications like advanced driver assistance systems (ADAS), as
well as in manufacturer-included or aftermarket infotainment navigation
China continues to be a place of rising automobile production and
shipments. Passenger cars, for instance, which make up three-fourths of all
cars in the country, saw shipments climb 2 percent last year to 15.8 million
units. The steady outflow of cars means there is a continuous demand for
automotive semiconductors, especially for new microcontrollers and
sensors that help drive car safety and vehicle comfort—two areas of
increasing concern to China’s car buyers.
These findings are contained in the report, “Automotive Electronics Report
– China – H2 2013,” from the Automotive & Transportation service of IHS.
Navigation a hot contest between OEM and aftermarket
Vehicle navigation is a key application of automotive semiconductors used
for infotainment. Here original equipment manufacturers (OEM) of
navigation equipment compete ferociously with the aftermarket for
consumer dollars. But unlike other automotive applications such as power
train and safety, the aftermarket segment for navigation has a sizable
presence in China, providing car buyers the option to update or change the
navigation systems in their cars after purchase.
Aftermarket shipments in China for car navigation systems last year
reached 7.1 million units, up 20 percent from a year earlier. Key navigationprocessor suppliers included CSR of Wales, MediaTek and MStar
Semiconductor of Taiwan, Samsung of South Korea and Freescale
Semiconductor from Texas.
OEM navigation shipments, in comparison, trailed at 2.4 million units, up 15
percent. But while the aftermarket is projected to slow down, OEM-related
navigation will enjoy rapid growth in the years ahead as prices decline in
branded systems. Moreover, next-generation technology such as
telematics and internal smart connections are forging close ties with OEMs,
which could provide the branded market highly needed leverage over the
Japan’s Renesas Electronics was the leading processor provider for OEM
navigation with more than 40 percent shipment share, followed by other
important players like Freescale Semiconductor and Dallas-based Texas
Instruments; CSR, also prominent in the aftermarket; and Bosch of
Not just for high-end or luxury vehicles, ADAS systems are becoming
increasingly common in China. Features such as adaptive cruise control,
parking assist, forward-collision warning, lane-departure warning and blindspot detection are fueling a vigorous market for automotive sensors that
control such functions. The sensors used here include cameras, radar
systems, ultrasound and LIDAR.
Parking assist is particularly popular in the Chinese market, owing to the
serious space and parking problems in China’s megacities. Lower system
prices have helped push growth for this market, with the total installed base
by 2017 anticipated to reach some 18 million units.
Total processor revenue in China for ADAS and vehicle-related safety
features amounted to $8.8 million last year, forecast to climb to $45.0
million by 2017.
For more information, please contact:
IHS Media Relations
+1 303 305 8021
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical
areas that shape today's business landscape. Businesses and governments in more
than 165 countries around the globe rely on the comprehensive content, expert
independent analysis and flexible delivery methods of IHS to make high-impact
decisions and develop strategies with speed and confidence. IHS has been in business