Integrated circuit is the assortment of electronic components implanted onto a single piece of silicon. These components comprise of resistors, transistors, diodes, etc. These circuits are majorly used in automotive applications. The expanding developments in automotive safety and driver information systems are propelling the use of analog integrated circuit in the global market. Another major factor stimulating the usage of analog IC’s is the rapid adoption of smartphones across the globe. Also, growing demand for driverless and smart cars will significantly boost the demand for advanced sensors in the coming times. This will considerably stimulate the growth of the automotive segment in the global analog IC market.
Expansion in government initiatives in order to endorse safety systems along with rising safety concerns is said to positively impact the overall market demand. Enlarged use for emission reduction, safety, navigation, fuel efficiency, and entertainment systems has also propelled the demand for automotive segment as the production of semiconductor devices have amplified rapidly in the recent times.
Analog IC products play a fundamental role in multiple device connectivity. This has fueled their demand in the communication industry considerably. Furthermore, expansion in the use of analog IC products in manufacturing of multimedia devices will develop its recognition in the consumer electronic industry.
The market players are facing a huge challenge in terms of escalating design complexity of analog IC’s. This may act as the restraining factor in the market. Renowned vendors operating in the global analog IC market consist of Renesas, Maxim Integrated, Richtek Technology, QUALCOMM and Texas Instruments.
Asia Pacific to Continue Its Dominance of Analog IC
Several emerging markets are emphasizing on introduction of novel next generation cars with a superior car safety and management systems. Evolving economies including BRICS along with regions like France, UK, Australia, France, and Germany are focusing on development of next generation cars electronic components and systems. This is leading to the rising implementation of unconventional electronics in audio/video systems, hybrid electric drives, and LED lighting, eventually driving the usage of analog IC in electronics applications.
Asia-Pacific is the largest contributor for analog IC currently. In the projected period, the analog IC market in Asia-Pacific is estimated to exceed US$ 40 billion. On the other hand, North America is said to be the second-most leading region and is likely to acquire revenue growth at less than 5% CAGR. Regions such as Latin America, Europe, and the Middle East & Africa (MEA) will collectively account for less than 25% of global analog IC revenues in 2017. The automotive segment in the MEA region will escalate lucratively and will grow at a CAGR of 7.8% between 2016 and 2024. Brazil, on the other hand, leads the industry for automobiles. Consequently, the growing automotive segment in the region is lucratively contributing to the analog IC market growth.
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The automotive fragment in Europe is expected to record high Y-o-Y growth rates during the forecast period. It is accelerating at a CAGR of 4.8% between 2016 and 2024. Presently, general purpose IC products & services are observing high demand from several industrial verticals in Europe.