Strategic Analysis of European Semiconductor Market for Passenger Cars

SUMMARY

Pricing Pressures and Stringent Quality Requirements ChallengeSemiconductor Manufacturers

Achieving the optimum balance between technology, quality and price enablesemiconductor manufacturers to gain credibility in a highly competitive market.Advanced safety and comfort features combined with an essential zero-defectlevel compel development of comprehensive quality checks that ensure steadyperformance and a longer product lifecycle. Moreover, manufacturers operating inboth the consumer electronics and automotive sector must define unique qualitystandards, since the former emphasises on high-volume whereas the latter focuseson quality and longer life. This creates rising costs intensified by long termpricing agreements with car manufacturers that prevent a corresponding increasein average selling prices. Product differentiations, such as silicon withvalue-added software packages and application specific standard productscombining the benefits of standard and application specific solutions, fetchhigher premiums and eliminate interoperability.

This Frost & Sullivan research analyses the European passenger carsemiconductor market, the factors driving it and the challenges it is currentlyfacing. It gives a comprehensive view of various product features such asdrivetrain, chassis, interior, exterior, driver infotainment and safety systems.This research service focuses on the market and technology trends, recentdevelopments with in-depth market forecasts and competitive analysis.

Demand for Integrated Functionalities Spurs Deployment of Semiconductorsin Passenger Cars

Rampant innovation, advanced features and emergence of new applications inthe automotive industry drive semiconductor manufacturers to deliver ahigher-level complexity and intelligence through their products. "Thegrowing trend of multi-featured cars has shifted focus of semiconductorcompanies from traditional component level solutions to a system levelsolution," explains the analyst. "This necessitates microcontrollerswith integrated functions and interfaces such as embedded flash memory andcontroller area network bus interface."

With active safety systems coming into vogue, semiconductor companies areincorporating superior performance microcontrollers, complementary metal oxidesemiconductor cameras, analog and digital integrated circuit solutions. Theyhave also recognised the need for developing microcontrollers conforming tospecific power requirements. For instance, low-end applications use standardeight-bit microcontrollers, whereas high performance centralised systems,claiming higher power, deploy 16- and 32-bit microcontrollers. The future mayalso witness production of 64-bit microcontrollers that meet the demand forincreasing features. Simultaneously, enhanced power management systems such assmart power devices are also expected to generate significant demand formonitoring the rising power usage required in handling such integrated devices.

High Development Costs to Force Future Consolidation

The heavy time and money investments required to enter and then sustain inthe market poses a major challenge to semiconductor companies with limitedresources and technology. "Semiconductor suppliers are compelled to forgealliances with larger counterparts to share technologies, expertise and therebyachieve quick market penetration and acceptance," says the analyst.

Such partnerships would also facilitate better compliance with lengthy andexpensive quality testing procedures, thereby creating products that are morereliable. However, niche companies leveraging their core strengths may notrequire consolidation to succeed in the market.

TABLE OF CONTENTS

• EXECUTIVE SUMMARY
  • Market Overview
    • Introduction
    • Market Challenges
    • Industry Structure
  • Major Research Findings
    • Total Market Forecasts
    • Market Breakdown by Features
    • Competitive Analysis
    • Strategic Conclusions and Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS -TOTAL MARKET
  • Introduction
    • Overview & Definitions
    • Key Technologies
    • Market Challenges
  • Market Structure Analysis
    • Industry Structure
    • Supplier versus Product Matrix
  • Market Drivers and Restraints for the European AutomotiveSemiconductor Market
    • Market Drivers
    • Market Restraints
  • Total Market Forecasts
    • Total Revenue Forecasts for Semiconductors in Passenger Cars
    • Pricing Analysis and Trends
  • Market Forecast and Analysis by Application Type
    • Powertrain
    • Exterior Features
    • Interior Features
    • Chassis Features
    • Driver Infotainment Features
    • Safety Features
  • Market Analysis and Forecast by Semiconductor Component
    • Microcontroller
    • Power Devices
    • Application Specific Integrated Circuits
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Competitive Analysis
    • Competitive Structure
    • Tier 2 Semiconductor Suppliers
    • Tier 1 System Suppliers
    • Market Share Analysis
  • Strategic Implications
    • Strategic Implications for Vehicle Manufacturers
    • Strategic Implications for Systems Suppliers
    • Strategic Implications for Semiconductor Suppliers
  • Strategic Recommendations
    • Recommendations for Vehicle Manufacturers
    • Recommendations for Systems Suppliers
    • Recommendations for Semiconductor Suppliers
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS -POWERTRAINFEATURES
  • Market Overview for Semiconductors in Engine Control Features
    • Introduction
  • Impact Analysis of Market and Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast and Trends for Engine Control Features
    • Engine Management ECU
    • Transmission ECU
    • Total Revenue Forecast for Semiconductors in Powertrain Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS-EXTERIOR FEATURES
  • Market Overview for Semiconductors in Passenger Cars - ExteriorFeatures
    • Introduction
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast and Trends for Semiconductors in Passenger Cars -Exterior Features
    • Active Headlights
    • Active Side Mirrors
    • Keyless Entry Systems
    • Total Revenue Forecast For Semiconductors in Passenger Cars -Exterior Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS -INTERIRORFEATURES
  • Market Overview for Semiconductors in Total Interior Features
    • Introduction
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast and Trends for Interior Features
    • Automatic Climate Control Systems
    • Dashboard Electronic Control Unit
    • Power Seats
    • Rear View Mirror
    • Total Revenue Forecast for Interior Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS-CHASSIS FEATURES
  • Market Overview for Semiconductors in Total Chassis Features
    • Introduction
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast and Trends for Chassis Features
    • Steering Systems
    • Braking Systems
    • Suspension Systems
    • Total Revenue Forecasts for Chassis Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS-DRIVER INFOTAINMENT FEATURES
  • Market Overview for Semiconductors in Total Driver InfotainmentFeatures
    • Introduction
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast and Trends for Driver Infotainment Features
    • Car Radio
    • Car Navigation Systems
    • Car Multimedia Systems
    • Total Revenue Forecasts for Driver Infotainment Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTOR MARKET FOR PASSENGER CARS-SAFETY FEATURES
  • Market Overview for Semiconductors in Total Safety Features
    • Introduction
  • Impact Analysis of Market Technology Trends
    • Industry Trends
    • Technology Trends
  • Market Forecast for Semiconductors in Safety Features
    • Active Safety- Antilock Braking Systems (ABS)
    • Active Safety- Electronic Stability Programme (ESP)
    • Active Safety- Adaptive Cruise Control System
    • Passive Safety-Airbag Systems
    • Total Revenue Forecast for Safety Features
    • Pricing Trends
  • Strategic Analysis
    • Outlook for Semiconductor Suppliers
    • Recommendations
• FROST & SULLIVAN AWARD-STRATEGIC ANALYSIS OF EUROPEAN SEMICONDUCTORMARKET FOR PASSENGER CARS
  • Frost & Sullivan Awards
    • Overview
    • Frost & Sullivan Market Leadership Award
    • Frost & Sullivan Product Quality Control Leadership Award
    • Frost & Sullivan Growth Strategy Marketing Leadership Award
    • Frost & Sullivan Product Line Strategy Award -In-Vehicle-Networking
    • Frost & Sullivan Product Line Strategy Award -Microcontrollers
• APPENDIX
  • Glossary
    • List of Abbreviations