Your next question is from the line of Andrew Gardiner from Barclays. Please go ahead.
… if we say operational revenue for this year, you're effectively guiding to mid- to high single-digit growth. It feels like that's underperforming the end market, if I look at IHS calling for 11% growth -- unit volume growth this year. I'm a little surprised that you guys would be below that given the content gain for your type of a product. So can you help me understand why that might be?
On an IFRS basis operationally, we expect Automotive to grow with a double-digit number, very similar to what you say, what IHS is indicating. And component of the effect of the semiconductor shortage is that for certain car lines, prioritization by the OEMs has led to less silicon in the car affecting the take rate of our products. We're confident that it's a temporary, but some of the OEMs, they say, well, they're so large shortage of semiconductors, let's try to push cars out that either have a high margin or that we can actually produce. And for the latter, that has a compound effect on our sales. But anyway, we believe that, that will be behind us given another two quarters or so.
Okay. So perhaps a bit more coming through the deferred revenue movement in the second half to boost that to more market levels of growth?
Okay. And then just on looking at a little bit further, I mean, Harold, you talked about deal activity being strong and the potential or even likelihood of pent-up demand from this year being realized in future periods. Earlier this year, you guys gave us 2023 guidance for Location Technology revenue of €550 million. Do you think that's still achievable? Is this a sort of temporary setback this year that you can make up next year and the year beyond?
Yes. I think that is still achievable. I don't see anything fundamental that is pushing us, of course. So no, I don't see -- at this point, I don't see any reason why that would not be achievable
And your next question is from the line of Marc Hesselink from ING. Please go ahead.
Firstly, on the significant wins that you expect in the second half '21, how come you have that visibility, if these deals are those very close? And then, what kind of deals are there? Are they new clients that you win from the competition?
So we have good visibility on which contracts will be awarded when. By and large, we have kind of a timetable and intimate involvement with our customers of when those deals will be awarded and what we need to do to win them. And that results in a pipeline that results in a total market that we can see. and that results us in believing that there's a good opportunity for strong order intake in this year. First half was already good. And I think in the second half of this year, there are major opportunities available to us It’s very difficult to give you a number. We do that in beginning of next year. We give you an overview of the order backlog and how that has changed in 2021. But if I would be a gambling man, then I say it's going to be a good year for order intake in 2021.
Okay. And is it extensions of contracts that you already have? Is it new contract that you win from the competition?
When I talk about the Automotive opportunities, I would say it's probably half-half, so half of the opportunities are existing customers with extensions and new awards. And the other 50% will be clear market share wins. Typically, it's related to a new generation of hardware and a new generation of vehicles that are planned for. We hope to win the software and the content for the next generation of vehicle models for a particular brand. And then in between, there are bits and pieces and and extensions. But the big deals tend to be linked to a new generation of vehicles with a new generation of in-vehicle technology.
Okay clear. Thanks.
I think there is a trend visible, I think a couple of years back, OEMs would really go from deal to deal and and everything would be reset to zero. And then the vendor with the best product price combination will typically win. What we see is more longevity and more strategic alignment and the willingness of carmakers to start from scratch is reducing. And I think that's a good thing for us because we have with our customers a good reputation of doing what we promised to do, being on time, on quality, be collaborative.
Typically, the working relationships our engineers and product people have with their counterparts in the OEM industry are to be characteristic by good and on a high level of trust. And that helps us, of course, in expanding and deepening those partnerships further. And because software is getting more complex and there's more moving parts, there is a clear economic rationale also to keep building and deepen those relationships further and make them more strategic in their nature. Does that make sense?
Yes. Yes. Clear.
Since there are no further questions, I would like to thank you all for joining us this afternoon. Operator, you can close the call.