ADAS Semiconductor Market Tracker Report - H1 2019

Vehicle production in 2019 will be less than that of 2018, and 2020 is forecast to be flat to 2019. Despite vehicle production being down in 2019 and flat in 2020, electronics and semiconductors production will increase during both years and beyond. Electrification of propulsion systems and advanced driver-assistance systems (ADAS) are the main drivers. ADAS revenue, however, will increase over this time frame because its growth is more dependent on its penetration rate rather than vehicle production. As such, its revenue from 2018 to 2025 will have a compound annual growth rate (CAGR) of over 16%. Its shipments will grow at over 13% over this same time frame. This indicates one of the major trends of replacing microcontroller units (MCUs) with higher average selling price (ASP) systems-on-chip (SoCs). Another trend is domain controllers displacing electronic control units (ECUs); there will be an increase in the amount of memory. The type of memory will also change. NOR flash will continue to be used, but NAND flash will increase for storage. DRAM will undergo a transition from double-data rate (DDR) to low-power double-data rate (LPDDR). Graphics DDR (GDDR) is now in production vehicles as well. The number of camera and radar modules increases as cars become more intelligent. This results in the semiconductor content increasing in ADAS despite the decrease in vehicles produced in 2019 and 2020. The main semiconductor suppliers remain constant. Over time, memory suppliers will increase their revenue and as SAE L2+ and above domain controllers have more shipments, NVIDIA will become a more significant supplier. Lastly, as a result of Infineon’s bid to acquire Cypress, Infineon will move up.