LONDON The market for automotive electronic systems is set to grow from a 2009 low of $125 billion to about $210 million in 2014, a CAGR over the period of 11 percent, according to market research firm Strategy Analytics. Over the longer period to 2017 the company is forecasting a CAGR of 9 percent to yield an annual market of about $244 billion.
The company puts the putative growth down to a combination of economic recovery spurring general demand and the inclusion of advanced powertrain systems as vehicle manufacturers seek to improve the fuel efficiency of their vehicles.
"Strategy Analytics expects to see the value of powertrain electronic control units (ECUs) installed in light vehicles grow at a compound average annual growth rate of 14 percent over the period 2009 to 2014 – outpacing the overall market growth of 11 percent,” said Ian Riches, director of Strategy Analytics' automotive research, in a statement.
"While the number of hybrid and electric vehicles sold will remain relatively low, the demand for electronics for these vehicles will grow to around 20 percent of the demand for powertrain electronics by 2014. This strong growth in demand is due to the much higher electronics content in these vehicles," said Chris Webber, who is a vice president who works in automotive practice.