The world market for non-entertainment automotive electronics, excluding sensors and commercial vehicles, was estimated at US$26.9 billion in 2002 and is forecast to reach US$35.4 billion by 2007, according to the latest figures from Reed Electronics Research. Growth is forecast across all product segments and regions with the strongest demand coming from the emerging markets in Asia and East and Central Europe.
Legislation – driven by environmental and safety issues – customer demand and benefits to the car manufacturer will continue to boost the market despite a slowdown in passenger car production in North America and Western Europe. The migration of electronics into the volume segments of the market will be the key driver for many automotive electronic systems although growth in value terms will be offset by severe pricing pressures. The period to 2007 will also see the emergence of new products and applications, such as advanced lighting and night vision, in the upper market segments although the delay in the introduction of 42 volt technology will push back the commercial introduction of number of systems. This will include by-wire, the technology seen by many as a key factor in enabling automakers to meet more stringent fuel economy/emission standards.
Source: Reed Electronics Research