Consultants Strategy Analytics predicts a tough time ahead for automotive electronics, saying that the market will take until 2011 to exceed 2007’s peak.

The crash in vehicle production and sales has led the company to forecast a 15 percent fall in the value of automotive electronics systems installed in light vehicles in 2009, down to US$126 billion ($167 billion), this follows a 3 percent fall in 2008. Things are not all bleak, however, with the company predicting good long term prospects once the current financial crisis recedes.

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

“Demand for powertrain electronics systems is expected to grow at a compound annual average growth rate of 7.5 percent over the period 2008 to 2013, as OEMs strive to improve vehicle fuel economy,” says Chris Webber, Vice President, Global Automotive Practice.