The rapid growth of the domestic automotive electronics market will account for 9.8% of global electronic system sales in 2021.

According to the 2018 edition of ICInsights data report, from 2016 to 2021, sales of automotive electronic systems are expected to increase at a compound annual growth rate (CAGR) of 5.4%, which is the highest among the six major end-user systems.

With the increasing demand for new vehicle electronic systems, people are paying more and more attention to autopilot technology, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, as well as vehicle-mounted safety, convenience, and environmental protection features. This shows that people’s interest in electric vehicles is growing. With the wide application of these technologies in mid-range and entry-level vehicles, as well as the strong promotion of after-market products, automotive electronics products are in an ever-increasing trend. For semiconductor suppliers, this will be a good news. After all, many of these automotive systems require analog integrated circuits, microcontroller MCUs, and a large number of sensors.

As shown in Figure 2, the global electronic system market is expected to total 1.49 trillion U.S. dollars in 2017. It is estimated that the automotive market share will account for 9.1%, which is higher than 8.9% in 2015 and 9.0% in 2016. The share of cars in the global electronic system production is expected to account for only a slight increase in the proportion of the entire electronic system market by 2021, and automotive electronics products account for 9.8% of global electronic system sales. Although many electronic systems are being added to new vehicles, ICInsights believes that during the forecast period, due to the price pressure of ICs and electronic systems, the proportion of automotive terminal applications far exceeds the current share of the entire electronic system.

For other electronic and integrated circuit markets, the IC market has also given relevant interpretations. It is expected that by 2021, the automotive market will become the fastest growing electronic system market. This is good news for the entire automotive IC market, which is expected to grow by 22% in 2017 and by 16% in 2018.

It is estimated that by 2021 the industrial electronic system will reach the second fastest growth rate (4.6%), as robots, wearable health devices and systems that promote the Internet of things are pushing the development of this area.

It is expected that analog ICs will account for 45% of the industrial IC market in 2017. With the sales volume of smartphones and other mobile devices globally saturating, CAGR is expected to reach 4.2% in the 2016-2021 communications system. The Asia-Pacific region is expected to have the strongest regional growth in communications systems and will account for 69% of the total communications IC market in 2017.

It is expected that the consumer electronics system market will show a compound annual growth rate of 2.8% by 2021. The logic chip will become the largest consumer IC market in the entire forecast. It is expected that the consumer IC market will achieve a CAGR of 2.4% in 2016-2021.

The average or marginal demand for personal computing devices (desktops, laptops, and tablets) is expected to lead to a compound annual growth rate of the computer systems market before 2021, which is the lowest point. It is estimated that in 2017, due to the increase in the average price of computer DRAM and NAND flash memory, the total market for computer integrated circuits will also increase by 25%.

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