IC Insights: Automotive and the Internet of Things are expected to be the two giants driving the IC market growth

IC Insights recently released in 2018 the latest driver report shows that the next five years, automotive systems and the Internet of Things IC sales is expected to be 70% faster than the overall IC market growth.

It is reported that automotive system IC sales in 2016 was 22.9 billion US dollars, is expected to grow to 42.9 billion US dollars in 2021. While in the sensor and Internet of things IC revenue is expected to increase from 18.4 billion in 2016 to 2021 34.2 billion US dollars, huge market potential.

As shown in the figure, it is estimated that between the years 2016 and 2021, sales of automotive ICs will grow at a compound annual growth rate of 13.4%, while that of the Internet of Things IC will reach 13.2%.

IC Insights predicts that car IC sales will soar by 22% in 2017 to reach about 28 billion U.S. dollars, up only 11% in 2016. It is estimated that sales of car ICs will increase by 16% in 2018 to reach 32.4 billion U.S. dollars.

In the meantime, IoT IC sales will grow by 14% in 2017 to reach US $ 14.5b, with growth of about 18% in 2016. IoT end-application integrated circuit sales are expected to increase by 16% in 2018 at around 168 One hundred million U.S. dollars.

The CAGR of the entire IC market is 7.9%, which is expected to increase from 297.7 billion yuan in 2016 to 434.5 billion dollars in 2021. Among them, the medical electronic products will have a CAGR of 9.7% to 20.8 billion U.S. dollars by 2021 , While wearable system CAGR 9.0% to 4.9 billion US dollars.Thus, the growth of the entire IC market, in addition to the automotive system and the Internet of Things industry driven indispensable to promote other areas.

Sales of mobile phone chips are still the largest market applications in the IC market, accounting for 25% of the total IC market revenue. It is expected to grow at a compound annual growth rate of 7.8% in the next five years with sales of 105.6 billion U.S. dollars in 2021. In contrast, 2018 video game consoles and tablets will appear to varying degrees of weakness, inhibiting the entire IC market sales growth.

IC Insights noted that the ASP of DRAM and NAND flash memory soared substantially in 2017, driven by the sales of ICs for mobile phones and personal computers (including desktop and notebook computers), of which IC handset sales are expected to increase this year To $ 89.7 billion while the transaction volume of personal computer IC dollars is expected to climb 17.6% to $ 69 billion. For the mobile and PC markets alone, 2017 will be the fastest-growing year for IC sales since the recovery in 2010 And the same will be next year there will be growth in sales of mobile phones IC will grow 8% to 97.3 billion US dollars, sales of personal computer IC will grow 5% to 72.6 billion US dollars.