Trends of Automotive Electronics Segments

1. Product lifecycle and technology development
Automotive electronics roughly include four categories: power control, security control, communications and entertainment systems and body electronics. Currently, most body electronics products have come to maturity or recession of product life cycle. As for power control, GDI (gasoline direct injection) is still in growth period, and is expected to see penetration rate of 40% in European and American markets by 2018.

In terms of security control, the fast-growing automobile safety driving support system in recent years is still in the introduction and growth, and used in few high-end cars. The future large-size popularization depends on technology’s maturity and cost decline. Tire pressure monitoring is rapidly raise penetration in European and American markets; but still in introduction stage in China and other emerging markets, due to lack of mandates.

Communications and entertainment system is the red sea in recent years. Affected by Europe and America requires new cars equipping emergency vehicle information systems and other factors, embedded in-vehicle information systems development is especially eye-catching, with penetration rate rising by nearly 17% from 33% in 2010, remaining in growth period. Future development of vehicle information systems is of high potential; industrial commercialization will further spread to the mass market.

2. Market size and average profit rate
For product lifecycle, market segments of automotive electronics show different growth and profitability. Vehicle information systems and safety driving assistance systems grow rapidly; since traditional car manufacturers and cross-industry vendors are all involved, market integration is relatively low, but there are many variables in future technology development, so manufacturers’ R&D investment and profitability is very high. Power control system market has high integration; but it is mainly controlled by large manufacturers, the technical threshold is very high. Growth of other security controls and body electronics market is relatively robust.