Driven by the triple trends of vehicle electrification, automation and connectivity, the automotive semiconductor market had a splendid 2014, and is on track for more growth, according to a new report from research firm IHS (NYSE: IHS). Automakers built more cars and used more semiconductors in 2014, bringing the market to $29 billion, a 10 percent annual increase.

IHS reports that the fastest growing segments for automotive semiconductors are hybrid electric vehicles, telematics, connectivity and driver assistance systems – revenue in these applications is forecast to see annual growth of 18-20 percent through 2018.

Tightening emissions regulations are leading to increased use of semiconductors in powertrain applications in regions around the world. Key semiconductor applications in electrified vehicles include motor inverters, DC/DC converters, battery management systems and plug-in chargers.

“The new concepts in emissions mitigation in the engine and in exhaust after-treatment systems require advanced sensors for their operation,” said IHS Analyst Ahad Buksh. “For example, a hybrid electric vehicle demands ten times more semiconductor content in powertrain.”

It was an especially good year for Infineon, which enjoyed double-digit revenue growth. Electrification has helped its power management solutions, including micro-component ICs.  Infineon has now taken the lead spot from Renesas, which has led the market for many years. 

Source: IHS
Image courtesy of Infineon