By Matt Weiss
Four “megatrends” — electrification, autonomy, connectivity and mobility as a service (MaaS) — are reshaping the automotive industry and dramatically increasing the semiconductor content in vehicles.
“For a century the internal combustion engine has been the source of value and innovation in the automotive industry," said Gary Silberg, KPMG’s Automotive Leader.. "Today we are entering a new automotive age where semiconductors are now the new vehicle ICE, ‘internal computing engines,’ at the heart of automotive safety, comfort and user experience.”
Increasingly, a car’s value will be defined by the safety, convenience, and infotainment provided by all the semiconductors under the hood—and throughout the vehicle. Instead of thinking about horsepower, consumers may shop for cars with the best onboard computers and electronic systems.
This shift is forcing an intensifying convergence of the semiconductor and automotive industries, one that will result in massive growth for the automotive semiconductor market, taking it from $40 billion this year to $200 billion by 2040.
To learn more, read KPMG’s latest automotive analysis “Automotive Semiconductors: The New ICE Age” and follow #KPMGAuto on social media for updates from the 2019 Los Angeles Auto Show.
If you would like to speak with Gary Silberg further about this topic, please contact Matthew Weiss at firstname.lastname@example.org