More digital in cars - more Automotive IC

Meanwhile, government-mandated safety and efficiency regulations have also have contributed to the growing market for automotive ICs. In the next five years, the demand for tire pressure sensors is expected to jump dramatically as U.S. law requires these systems on all new cars and light trucks sold beginning in August 2007. Also, advanced safety systems are expected to fuel automotive IC growth, with cars becoming "aware" of their surroundings through a host of sensors, cameras, and other fiber optics. According to IC Insights' recently released IC Market Drivers report, the global automotive IC market is forecast to reach $13.2 billion in 2007, a 7% increase from $12.3 billion in 2006. By 2010, the automotive IC market is forecast to reach $17.2 billion (Figure 1). The report goes on to mention that most higher-end vehicles currently contain between $400-$500 worth of semiconductor devices. However, the average semiconductor content in a 2006 model-year vehicle was $300 and is forecast to grow to $345 by 2010. It is possible that, by 2010, the average semiconductor content in cars could jump to $500. However, to bring the average amount to this level would likely require the sale of more high-end autos, and also more "green" vehicles such as hybrids and electric automobiles.