Automotive grade semiconductors to reach $18 bln in 2006

Strategy Analytics says that the market for automotive grade semiconductors in 2006 will reach $18 bln, a YTY growth of 10%. Planned enhancements to vehicle performance, features and safety will drive automotive semiconductor revenues to almost $29 bln by 2013, ensuring that semiconductor vendors in this sector will enjoy good growth throughout this decade and beyond. Global light vehicle production is expected to grow at a CAGR (Compound Annual Growth Rate) of 3.6% over the period 2005 to 2010. Over the same period Strategy Analytics expects automotive semiconductor revenues to grow by more than double that rate at 8.2% CAGR, as vehicle makers introduce electronically controlled innovations in order to meet tightening environmental and safety legislation and respond to consumer expectations of enhanced performance, comfort and infotainment.