Thursday, 18 May 2017

Mega trends in automotive boosting demand for semiconductors

The mega trends set to disrupt the automotive industry: electrification, connectivity, mobility and automation, are set to create considerable value chain element growth. The semiconductor industry, in particular, will see demand increase from around $30 billion in 2015 to $42 billion by 2020. China, will continue to sees its share of the total market increase in the mean time.

The automotive industry is set to continue to see the sale of new units rise, as car ownership becomes more affordable across Asia. The industry is facing a number of mega trends however; as the globe moves towards a sustainable economy, electrification is set to pick up; while digitalisation is opening up connective car opportunities; mobility considerations, such as car sharing and carpooling too are being created through technological advance and new business models; finally, automation, is set to radically transform the roads, reducing accidents and creating new ownership models.

As the mega trends begin to set in, the wider value chain that supports many of the innovations, is likely to see considerable boosts in revenues. In a new report from McKinsey & Company, titled ‘Mobility trends: What’s ahead for automotive semiconductors’, the consultancy firm explores the effects the mega trends will have on semiconductor sales.

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