(Photo: Siemens)

Global demand for automotive semiconductors is set to grow 4.5 pc annually in the next five years, according to a forecast by Germany's Association of Electrical and Electronics Manufacturers (ZVEI). In 2014, global demand stood at almost 35 billion euros, the association said.

Speaking at a ZVEI conference on automotive electronics, the association's president, Michael Ziesemer, said he expected 80 pc of all new cars next year to have some form of connectivity with data sources outside the vehicle.

"Innovation in automotive manufacturing today most often no longer comes from vehicle technology but is 80 pc driven by micro-electronics and software," he said.