The world automotive electronics market

Abstract

Worldwide production of passenger cars and light trucks is expected to total 35 million units in 1980 and 50 million by 1990 with approximately 400 million vehicles in use today. Although there is a small difference in available technology, there is a significant difference in the electronic content of the average car by major geographical region. The primary reasons for this difference are: 1) the impact of different government standards and 2) the degree of cultural acceptance of electronic systems either as options or as standard items in luxury vehicles. The high price of fuel and the absolute need for energy consevation has led manufacturers worldwide to systematically exploit the advantages of applying electronics to drivetrain controls. In 1980, the approximate worldwide value of non-entertainment automotive electronic systems for passenger cars and light trucks is $1.6 billion with a North American market approaching $750 million. The average per vehicle market value is $45 worldwide and $74 in North America. By 1985, led by increased applications of electronic engine controls, a $10 billion worldwide market is expected with a vehicle production of 42 million. The North American portion of this market is projected to exceed $3.5 billion. Electronics will play an important role in product differentiation as downsizing of cars and standardization of chassis tend to reduce vehicle uniqueness. While worldwide vehicle volume is projected to reach 50 million by 1990, automotive electronic new product growth in the 1985-1990 period will continue at a somewhat reduced rate as more effort will be concentrated on system refinements and reliability improvements. Safety and security systems including radar collision avoidance are expected to have a major impact in this period. In 1990, the projected worldwide automotive electronics market is estimated to reach $17 billion which is why automotive electronics continues to be an exciting business.