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Frost & Sullivan has recently made public their new report on the current status of ASIC, ASSP, and FPGA markets. The report not only states how the industry is faring but also forecasts what will be the trends in the markets and what will be the challenges that it will have to confront.

In the study, the experts analyzed also other factors that affect the industry directly like their end-users. They include also in their studies body and chassis, central command, telematics, power train, engine control, safety and security, and driver relevant information. The main thing that the study shows is that more and more electronics are being used on automobiles which increased the demand for ASIC, ASSP, and FPGAs.

Today’s vehicles are becoming more and more reliant on electronic components. Different systems of a vehicle that are being developed and produced today are equipped with electronic systems which aid the mechanical parts in performing effectively. Fuel injection systems for cars rely on electronic components to provide the engine with the right amount of fuel. Likewise, safety systems also rely heavily on electronic circuits to provide optimum safety to the occupants of a car in the event of a crash. Braking systems also depend on electronic components like the anti-lock braking system (ABS).

The automobile specific integrated circuit (ASIC), application specific standard products (ASSPs), and the field programmable gate arrays (FPGAs) markets have been achieving much success, thanks to the needs for the said products in the automotive industry. The increase in the number of consumers means that the demand for the said electronic parts will also rise. Other factors that made the need for electronic parts are government pollution mandates, safety and security regulations, and the oil crisis. The use of electronic components also reduces manufacturing costs since human errors are very much avoided.

In the automotive industry, the introduction of luxury features also increased the need for specialized electronic components. The popularity of hybrid vehicles like the popular Toyota Prius also made the demand increase. Electronic components are needed on hybrid vehicles to facilitate the smooth change of power from engine to electric motor muscle. Other mandatory safety systems also need electronic components. Electronic stability systems rely on electronics to keep the car stable especially while cornering. Suspension systems also depends on electronics as shown by electronically controlled independent suspension systems employed by the latest mass produced vehicles.

Due to the increase in the demand of such, the industry is expected to generate considerable revenues especially in the European region’s market where the industry is doing a very good business. While Europe may be the leading region in terms of production of ASICs, ASSPs, and FPGAs, Asian countries are joining the bandwagon. The region has become the fastest growing segments due to the increasing automobile sales in the said area. Without the aid of electronic components, even high quality parts like brake components from EBC Active Brakes Direct will not perform to the best of their capabilities.

While the industry may be enjoying much success, they still have to come up with more world class electronic design automation software tools to provide better service to their end users. Fierce competition is also expected since there are companies that are already established which will make it hard for smaller enterprises to break into the market and stake their claims in a share in the growing market. The analysts said that there is a possibility that the large and established companies will acquire smaller companies to increase their productivity. Analysts further said that the market for electronic components will grow dramatically as the technology used in cars will likely advance in the future.

Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.