The global Automotive Electronics Market size is expected to reach USD 493.69 billion by 2027, expanding at a CAGR of 9.0% over the forecast period, according to a study conducted by Grand View Research, Inc. Increasing automotive production across emerging economies, coupled with the growing demand for luxury and hybrid vehicles is anticipated to drive the growth. Additionally, the availability of advanced safety systems with features such as automatic emergency braking, and blind-spot detection at a reduced cost is leading to an increase in the integration of these systems. This, in turn, is also expected to boost the adoption of Engine Control Units (ECUs) and sensors used in these systems, subsequently fueling the market growth.
Moreover, to bring down the number of road accidents, governments are also regulating the use of Advanced Driver-Assistance Systems (ADAS) in vehicles. For instance, the New Car Assessment Program mandates the use of advanced active and passive safety systems, such as automatic emergency braking and lane departure warning, in China, U.S., and Europe. The Indian government also allows the use of certain low-frequency bands that can help automotive manufacturers to use radar-based systems for installing ADAS features in vehicles. Stringent regulations have mandated the deployment of most of the electronic components during vehicle production stage itself, thus linking the automotive electronics demand with the growth in vehicle production. Hence, it resulted in an increase of over 2.5% in the Original Equipment Manufacturer (OEM) segment share between 2019 and 2027.
Furthermore, in European and North American regions, the demand for in-vehicle infotainment systems has gained prominence, thereby supporting the market demand. Infotainment solutions providers are actively participating in consolidating the features, such as in-vehicle infotainment and ADAS, in reducing the overall electronic component count, consequently reducing the vehicle weight. For instance, NVIDIA Corporation announced the launch of the DRIVE CX platform. This platform can be used for infotainment and ADAS solutions, in the autonomous vehicles. However, such consolidation requires high-speed data processing controllers such as 64-bit ECU’s and integration of other advanced hardware and software, which is expected to drive the overall market growth from over the forecast period.
Asia Pacific held a dominant market share in 2019, attributed to the significant investments in the automotive industry, mainly in emerging countries, such as Japan, India, and China. The Make in India campaign is anticipated to draw significant investments toward automotive sector, as India offers benefits such as cheaper raw materials and low-cost labors. Besides, Japan is one of the most technologically advanced nations and has witnessed some recovery in its vehicle production since 2015.
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Automotive Electronics Market Report Highlights
- The current carrying devices segment is expected to hold a dominant market share over the forecast period, owing to the rising demand for convenience, safety features, and connectivity in passenger cars
- The safety systems segment is estimated to dominate the market throughout the forecast period owing to increasing consumer awareness pertaining to safety equipment in vehicles
- OEM segment dominated the automotive electronics market in 2019 owing to the increased durability and shelf life of electronic components that they offer as compared to the aftermarket components
- Asia Pacific is estimated to register the highest CAGR of 9.4% from 2020 to 2027 owing to the increasing vehicle production in emerging countries such as India and China
- The key industry competitors include Aptiv PLC, Continental AG, Denso Corporation, Intel Corporation, Robert Bosch GmbH, and ZF Friedrichshafen AG
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