Frost: Single Chip Mixed Signal Solutions Set to Drive Next-generation Autos

October 17, 2006 // Published as a news service by IHS

The ongoing demand for safety, comfort and entertainment features is likely to be a major driver for mixed signal system on a chip (MxSoC) solutions in the automobile industry, according to Frost & Sullivan.

The MxSoC market is bound to grow in tandem with the advancing needs in the automobile industry, thus triggering an increasing demand from the industry.

In time, both industries are likely to spur each other, leading to a consistent growth in auto industry demand for MxSoC solutions in the next 10 years.

New analysis from Frost & Sullivan of MxSoC solutions for automobiles found revenue totaled $1.50B in 2005, with estimates to reach $3.25B in 2012.

Analysts said with novel vehicular electronics creating tremendous value addition, semiconductor companies are beginning to sharpen their focus on the automobile industry. The high-volume penetration of MxSoC in passenger cars provides for a whole new range of applications, leading semiconductor companies to develop an extended range of solutions for the automobile industry.

There is now a widely shared vision among chip designers, suppliers and original equipment manufacturers (OEMs) and this promises a clear commitment to improvising the use of the technology in the automobile end-user segment, analysts said.

"In addition to their integrated functionality and ease of use, additional drivers for the use of MxSoC in vehicles include the heightened demand for safety features, growing popularity of driver infotainment, passenger comfort, as well as automatic controls such as air, temperature, windows and locks," said Frost & Sullivan research analyst Aravind T Seshagiri.

"In the next 10 years, MxSoCs are expected to have a tremendous impact on the automobile market and are poised to be among the best emerging opportunities in the automotive segment."

With respect to market restraints, the high cost of development and the growing complexity of new mechanical systems in vehicles are likely to pose significant challenges for market participants. Also, the practice of manufacturers having fixed contracts with vendors is severely hampering new entrants and/or existing participants wishing to expand their market presence.

Analysts said this makes it difficult for companies to acquire new clients. In overcoming this restraint, MxSoC vendors will have to differentiate their products not only in terms of features, but also in pricing.

Other notable market trends that could prove challenging to vendors is the increase in the number of motors to perform intelligent tasks within an automobile. Analysts said a mid-sized car has as many as 350 to 400 motors performing different intelligent tasks such as power mirrors, power seats, light source, automatic braking and other key functions.

As a result, the integrated circuit (IC) must provide high-quality performance in order to carry out these tasks and interface with other car equipment, both electronic and mechanical. This is crucial to delivering higher power and voltage capabilities at the lowest possible cost.

"The markets for MxSoC in the automobile segment present huge opportunities for semiconductor manufacturers to penetrate into several applications," said Seshagiri. "Having said that, MxSoC vendors will need to continually improvise on existing products and introduce new algorithms to ensure continued demand from customers in the automobile industry."

Source: Frost & Sullivan.