Automotive Electronics Market Size was valued at USD 270.96 billion in 2023. The Automotive Electronics industry is projected to grow from USD 290.55 Billion in 2024 to USD 507.86 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.22% during the forecast period (2024–2030). Active safety system demand and demand for cutting-edge infotainment systems are increasing and are the key market drivers enhancing the Automotive Electronics market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The ACES trends—autonomous driving, connected cars, electrification of the powertrain, and shared mobility—are advancements in the automobile industry that reinforce one another. They are all impacting and destabilizing the automotive value chain as a whole. Additionally, they are important contributors to the automotive software and electrical and auto electronic components (E/E) market, which is anticipated to increase from $238 billion to $469 billion between 2020 and 2030. The whole automotive industry is predicted to increase at a compound rate of 3% over the same period, significantly outpacing software and E/E sector growth at this rate. As a result, most automotive businesses and their executives now concentrate on software and electronics.
To provide energy storage technology and high-performance electronics at a competitive price, the automotive industry invests significant money in research and development. Additionally, OEMs rely increasingly on electronics to ensure high safety. In 2020, almost 35% of the cost of a car was made up of electronic components. However, given technological advancements, it is anticipated that by 2030, auto electronic components will make up around 50% of the cost of a car.
As per market dynamics, the need for Auto electronics components is anticipated to increase as hybrid electric vehicles (HEV) and electric vehicles (EV) become more widely used. Additionally, replacing mechanical parts with electronic parts, such as using electronic switches rather than relays, is another way that electronics may meet the diverse demands of the automobile industry while boosting dependability and lightning wire harnesses. According to market forecast, it is also anticipated that government laws to reduce traffic accidents and technological improvements connected to in-vehicle safety would increase demand.
The need for in-vehicle data storage to enable sophisticated features is driven by the expanding demand for in-car entertainment systems due to their enhanced comfort, efficiency, and convenience. This is one of the key factors influencing the market for in-car infotainment applications.
Based on type, the Automotive Electronics Market segmentation includes ADAS, Body Electronics, Entertainment, Powertrain, Safety Systems, and Others. In 2021, the safety systems sector held the biggest market share, at around 29%. Airbags, tire pressure monitoring systems, keyless entry, electronic brake distribution, electronic stability control, electric power steering, and suspension control are just a few of the parts that make up safety systems. Growing consumer awareness of technology advancements affecting automobile safety equipment is anticipated to be a significant development factor for the safety systems market. Therefore such factors will boost the Automotive Electronics market growth.
Based on sales, the Automotive Electronics Market segmentation includes OEM and aftermarket. In 2021, the OEM category held the greatest share, with over 68%. Due to the improved durability and shelf-life of electronic components, the OEM segment dominated the automotive electronics market in 2020. Since they are an essential element of automobiles, people prefer to purchase auto electronic components from OEMs to get authentic parts. In addition, a reduced revenue share for aftermarket electronic components is anticipated throughout the projected period due to the rise in design complexity of these auto electronic components.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on application, the Automotive Electronics Market data includes PV, LCV, HCV, EV, and 2-wheeler. Due to increased passenger vehicle sales and production worldwide, the passenger car sector currently accounts for the biggest market share for auto electrical connectors. The industry is expanding because of automakers' quick adoption of cutting-edge technology like infotainment and driver assistance systems. Furthermore, the government's strict regulations on fuel economy and the safety of both drivers and passengers are boosting market development. The market for electric vehicles (EVs) is expanding exponentially. Automakers are being forced to switch from making conventional gasoline vehicles to electric ones due to rising fuel pollution levels and carbon footprints. This aspect is anticipated to have rapid market expansion.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Automotive Electronics market accounted for USD 103.81 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. To provide energy storage technology and high-performance electronics at a competitive price, the automotive industry invests significant money in research and development. Additionally, OEMs depend increasingly on electronics to ensure high safety.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia Pacific Automotive Electronics market region had the biggest increase. Due to the thriving electronic component manufacturing operations, nations including Taiwan, South Korea, Malaysia, and Thailand have considerably contributed to the auto electrical connectors industry expansion. China and Japan supply most of the auto electronics needed in the Asia-Pacific region. However, the small number of Vehicle electronics producers presents a fantastic business opportunity for regional suppliers to take advantage of the domestic demand, making the remainder of Asia Pacific a desirable investment location. Further, the China Automotive Electronics market held the largest market share, and the India Automotive Electronics market was the fastest-growing market in the Region.
The European Automotive Electronics market region had the substantial increase. Due to the growing concern for passengers' and cars' safety and security, Europe is likewise seeing exponential market expansion. The presence of well-known automakers like Volkswagen, Skoda, Audi, BMW, and Daimler, among others, is advantageous in this area. Additionally, the European Union has implemented several rules to reduce traffic accidents and mandate safety features in all automobiles, which has helped the ADAS business flourish in this Region. All of these causes are fueling the expansion of the Automotive Electronics market. Further, the Germany Automotive Electronics market held the largest market share, and the UK Automotive Electronics market was the fastest-growing market in the European Region.
Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for automobile electronics. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. According to market competitive landscape, players in the Automotive Electronics industry must provide affordable products To grow and remain in a market that is becoming increasingly competitive.
Manufacturing locally to cut operational costs is one of the main business tactics the Automotive Electronics industry uses to serve customers and increase the market sector. The Automotive Electronics industry has recently given medicine some of the most important advantages. The Electronics market major players such as Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (US), Hitachi Ltd. (Japan), Delta Electronics Inc. (Taiwan), Atotech (Germany), ZF Friedrichshafen AG (US), Denso Corporation (Japan), Koninklijke Philips N.V. (Netherlands), and others are working on expanding the market demand by investing in research and development activities.
A Canadian company called Magna International Inc. produces vehicle parts. It was listed on the 2020 Forbes Global 2000 and is one of Canada's biggest corporations. Veoneer and Magna International Inc. announced their merger agreement in July 2021, under which Magna would acquire Veoneer. The firm will be merged with Magna's electronics and ADAS business segments.
Bosch Engineering creates electronic solutions for automotive and non-automotive applications that enable effective, secure, and connected mobility. Bosch Engineering created a high-voltage lab rig (HVLR) in July 2021 that can be used to test electric vehicles' power electronics effectively. Instead of on a bench, the test may be performed in a high-voltage lab, intended to save development costs and speed up the process.
24.06.2024 : The new term for the trend in the automotive industry is "software-defined vehicle." The foundation for creating and developing new car models is increasingly becoming software. By 2030, the global market for automotive electronics and software is expected to grow to 462 billion dollars, according to a recent McKinsey study. In 2023, the percentage of software in automobiles will triple.
Bosch aspires to be a part of this expanding industry and will continue to be the preferred partner for automakers globally. Heyn declared, "We are at the beginning of the era of the software-defined vehicle." It is good news for Bosch because we can handle both software and hardware. Among the few businesses that truly understand how automotive electronics and the cloud interact is us." Bosch, for instance, assists fleet operators in reducing vehicle breakdowns and boosting productivity through software and service solutions like Vehicle Health.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 270.96 billion |
| Market Size 2024 | USD 290.55 billion |
| Market Size 2032 | USD 507.86 billion |
| Compound Annual Growth Rate (CAGR) | 7.22% (2024-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Operating Platforms, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (US), Hitachi Ltd. (Japan), Delta Electronics Inc. (Taiwan), Atotech (Germany), ZF Friedrichshafen AG (US), Denso Corporation (Japan), Koninklijke Philips N.V. (Netherlands). |
| Key Market Opportunities | Electronic fuel injection Advanced driver assistance |
| Key Market Dynamics | Active safety system demand Demand for cutting-edge infotainment systems is increasing. |
Automotive Electronics Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Electronics Market size was valued at USD 235.4 Billion in 2021.
Which Region held the largest market share in the Automotive Electronics market?
High maintenance cost can be a primary challenge that the worldwide market can face in the years to come.
North America had the largest share of the Automotive Electronics Market.
The key players in the market are Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (US), Hitachi Ltd. (Japan), Delta Electronics Inc. (Taiwan), Atotech (Germany), ZF Friedrichshafen AG (US), Denso Corporation (Japan), Koninklijke Philips N.V. (Netherlands).
The OEM Automotive Electronics category dominated the market in 2021.
Passenger cars had the largest share in the Automotive Electronics Market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
