European automotive IC market motors ahead
The European market for automotive integrated circuits will grow by 23 per cent to $4.5 billion in 2004, according to market analyst IC Insights.
This would give Europe 40 per cent of estimated 2004 global motor-related chip sales of $11.5 billion, maintaining the region's position as the world's largest market for automotive ICs.
Europe became the dominant motor chip market in 1997 and shows no sign of relinquishing this position.
According to IC Insights, the region's proportion of the market will fall slightly by 2008 to $6.7 billion out of forecast total sales of £18.1 billion but even so it will still account for 37 per cent of the global market.
Europe has in Infineon, STMircoelectronics and Philips three of the world's top five leading suppliers of computer chips to the motor industry.
The strong expansion in the European market is being fuelled by the growing use of microcontrol units (MCUs) by luxury car manufacturers such BMW and Mercedes.
Top-of-the-range BMWs or Mercedes are fitted with 70 or more MCUs each and as a result demand for MCUs is growing rapidly in Europe. According to IC Insights, MCU sales will account for 39 per cent ($1.8 billion) of European automotive IC sales in 2004.
