Market Trends of Americas Analog IC Industry
Automotive Industry is Expected to Hold a Significant Share
- The automotive sector is expected to hold a significant market share from all the applications. The evolution of analog ICs for the automotive industry has benefitted different applications, like infotainment systems, vehicular handling and dynamics, power management, powertrains controls, safety solutions, and IoT remote-connected features. Such features incorporate different ICs dedicated to specific functions to network among different sections of vehicular operation.
- One of the world's biggest automobile marketplaces is in the United States. About 13,754.3 light vehicles were sold in the United States in 2022. The world's second-largest market for car sales and manufacturing is the United States. According to Autos Drive America, over the past 25 years, foreign automakers have increased their US production volume by more than 77%. In Q1 2023, Canadian car sales increased 4.4% yearly, with recent employment growth driving demand.
- As the number of autonomous cars rises, so does the necessity for cutting-edge semiconductor designs. Each microcircuit needs an analog circuit to communicate with the outside and the digital worlds. Analogue IC sales for automotive vehicles are predicted to increase as next-generation automobiles become fitted with electronic components, systems, and software to improve vehicle safety and control systems.
- Analog IC for automotive is wireless and low power consumption fabrication techniques, which help the analog IC penetrate the market more and drive the growth of analog IC for the automotive industry.
- According to Samsung, more than 80 million new connected cars are expected to run on US roads by 2025. In addition, the upgrade to 5G to boost the in-vehicle Wi-Fi connections and offer high-definition maps is expected to drive the need for analog IC infotainment systems.
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United States is Expected to Hold a Major Market Share
- From lighting to doorbells and refrigerators, the adoption of smart home devices in the United States has risen significantly over the past few years. The increase in smart home and IoT device applications has been driving the demand growth for analog ICs in the country.
- As per the Consumer Technology Association (CTA), the US smart home market was expected to grow by 3% in 2022 to reach USD 23.8 billion. The demand growth for smart homes is expected to be driven by rising energy costs, leading to the adoption of energy-efficient and cost-saving solutions for thermostats, lighting, and smart outlets. Such an increase in the market demand for smart home devices and smart power management devices is expected to fuel the growth of analog ICs in the region.
- The increasing applications of analog ICs in the automotive market are also expected to increase the demand for analog ICs in the country. For instance, according to US BEA, in 2022, the US car industry manufactured about 1.8 million vehicles. Compared to the prior year, this reflects a rise of nearly 13%. Due to the COVID-19 epidemic and its ripple effects on the automotive supply chain, the year 2020 was particularly difficult for the sector.
- Such an increase in the production of vehicles in the country may lead to an increase in the demand for infotainment devices deployed in vehicles, which may contribute to the demand for analog ICs in the Americas during the forecast period.
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