Global Automotive Electronic Revenue to Hit US$383 B. in 2020: TRi

Thanks largely to the increasing maturity of Long Term Evolution (LTE) and cloud computing technologies, the rapid development of autonomous cars, and the rising penetration of inter-compatible operating interfaces for on-board infotainment systems and portable devices, the annual production value of the global automotive electronics industry is expected to soar to US$383 billion in 2020, double the 2013 figure, according to the Topology Research Institute (TRi), Taiwan's largest private market research firm.

In the past, TRi points out, several factors kept automotive electronics from developing more rapidly, including uncertainty regarding communications standards, the immaturity of the high-speed mobile internet, a lack of application software for onboard units (OBUs), and insufficient telematics service content. Now, however, the high popularity of 3G/4G portable devices with Internet capability, greatly expanded bandwidth, and more cloud-computing applications have penetrated into various industries, implying that big changes are also coming to the automotive industry. Autonomous driving and OBU-portable device inter-compatible technologies are the strongest forces that are further stimulating automotive-electronics development, TRi says.

Citing autonomous driving as an example, TRi says that different automakers have begun analyzing and predicting drivers' habits and ways of thinking by collecting data from the cloud for Big Data analysis. The results can be used to continue improving autonomous driving functions.

At the same time, TRi adds, the increasing popularity of LTE technology and mobile devices as big international software companies join the fray are creating further momentum for the advancement of automotive electronics.

The research firm explains that increasing numbers of drivers are looking forward to more human and intelligent OBUs that provide the same or similar functions as general mobile devices, and Google Inc. has expressed an interest in setting up an Open Automotive Alliance (OAA) with global automakers as a means of providing more automotive applications for its Android platform.

In Taiwan, stagnant personal computer (PC) sales and the increasing demand for on-board telematics functions are driving more and more information and communications technology (ICT) companies to turn to the automotive application market created by the Android platform. In addition, TRi adds, many big software, networking, and central processor companies have targeted cars as a new mobile terminal and are trying to copy their past success in mobile devices in this new and promising segment. 

Caption: The Taiwan-based market research firm TRi predicts that global automotive electronics revenue will hit US$383 billion in 2020.