Auto electronics market will take until 2011 to recover

Boston, MA - May 5, 2009 –The Strategy Analytics Automotive Electronics service report, "Automotive Electronics System Demand Forecast 2007 to 2016: Tough Times, But Future Gains," predicts that the market for automotive electronics will take until 2011 to exceed 2007's peak.

The global banking crisis and subsequent recessions in many major markets has resulted in a crash in vehicle production and sales. This has led Strategy Analytics to forecast a 15% fall in the value of automotive electronics systems installed in light vehicles in 2009, down to $126 billion, which follows the 3% fall in 2008.

"Despite the steep decline in vehicle production, the underlying fundamentals of the automotive electronics industry are arguably stronger than they have ever been," argues Ian Riches, Director Global Automotive Practice. "Increased electronics penetration is the only realistic way that the industry can meet future environmental and safety requirements," he added.

"Although the short term outlook is bleak, there are significant opportunities for automotive electronics vendors in the medium and longer term," commented Chris Webber, Vice President, Global Automotive Practice. "Demand for powertrain electronics systems is expected to grow at a compound annual average growth rate of 7.5% over the period 2008 to 2013, as OEMs strive to improve vehicle fuel economy," he added.

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Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements.