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The automotive share of the total IC market has steadily increased since 1998 growing from 4.7% of total IC sales that year to 7.4% in 2021, according to IC Insights. The proportion is forecast to reach 8.5% in 2022, and climb further to 9.9% by the year 2026.
At the heart of this growth are the myriad number of new sensors, analog devices, controllers, and optoelectronics being incorporated into most new vehicles. Moreover, the rise of hybrid and all-electric vehicle sales worldwide is adding to this forecast growth, IC Insights said.
A sharp increase in electric-vehicle sales in the first three months of 2022 raised the EV share of new car sales in the US to approximately 5%, IC Insights quoted a report released by Automotive News as saying. Of the approximately 250 million cars and light-duty trucks in the US, it is estimated that only 1% are electric, but interest and sales continue to grow.
These factors are expected to result in the automotive market registering the strongest 2021-2026 CAGR of any of the major end-use segments at 13.4%, IC Insights indicated. Given its relatively small size, however, the high growth in the automotive IC segment is not expected to be enough to significantly lift the growth rate of the total IC industry over the next five years.