While production volumes remain modest compared to conventional powertrains, we can none-the-less expect strong growth rates for Hybrid Electric Vehicles (plug-in, mild and full) and for pure Electric Vehicles (EV). Indeed, September's forthcoming Frankfurt Motor Show (http://www.iaa.de/en/visitors/daten-fakten-besucher/details-iaa-2011/) will reinforce the message that HEVs and EVs are here to stay with numerous carmaker concept and production model previews planned for the event e.g. Renault's Frendzy EV concept and Toyota's much-anticipated Prius Plug-in model unveiling.
Based on its latest projections for HEV and EV production, Strategy Analytics forecasts that semiconductor demand for HEV/EV powertrain control (pure EV auxiliary inverters included) will be worth over $2 billion by 2018. Notably 92% of this semiconductor demand will be for analog components, for while digital logic will provide the brains for Hybrid Electric and pure Electric Vehicles drive, analog semiconductor chips will provide the bulk of the interface, measurement, protection and muscle-power for these alternative powertrains.
Consequently, production growth for the existing and the soon-to-market HEV and EV models will provide a significant boost to automotive-grade analog semiconductor demand: HEV/EV analog semiconductor market value CAAGR over the 2011 to 2018 period is forecast by Strategy Analytics at 23%. This is significantly above the 7.2% projected CAAGR growth forecast for standard automotive analog/linear products - creating significant new business opportunities for analog IC vendors.
Full analysis can be found in Strategy Analytics' report "Analog Semiconductor to get Market Boost from HEV/EV Growth".