Global Automotive Electronics Market Definition
Automotive electronics are electronics that have been specifically created for use in vehicles. Compared to commercial (i.e. typical) electronics, automotive electronics typically withstand more extreme temperature ranges and are, therefore, certified for them. Automotive electronic systems aid the automobile operations such as improved driving, fuel efficiency, driver safety, as well as rider comfort, and others. Several electronic systems are employed in automobile design that transform an automobile from a mechanical to an electronic unit. Vehicle telematics systems, entertainment systems, and electronic fuel injection are just a couple of the components that heavily rely on automotive electronics.
Both on-road and off-road vehicles, including trucks, tractors, forklifts, excavators, motorbikes, and hybrid and electric cars, utilize automotive electronics. They are generally utilized to improve the efficiency of the vehicle's electronic fuel injection, driver assistance, and entertainment systems. Anti-lock braking systems (ABS) protect vehicles from sliding on hills, and electronic car security locks improve security by using remote-controlled locks and a central locking system. Aside from that, automotive power electronics include satellite-controlled traffic monitoring systems and testing equipment to assure maximum fuel utilization and engine health.
Engine electronics, transmission electronics, chassis electronics, passive safety, driver assistance, infotainment systems, electronic, passenger comfort, and integrated cockpit systems are some of the categories in which automotive electronics systems can be categorized. The engine control unit is a highly crucial electronic component in a vehicle. This unit is used to regulate the accelerator, turbocharger, cooling system, and oxidation catalytic converter, as well as NOx control, emission control, and fuel injection rate. The most important role of automotive electronics in vehicles is to control the engine and improve the overall efficiency of the vehicle. As a result of rising consumer demands for efficiency, safety, comfort, and entertainment, automotive electronics have become more crucial.
Global Automotive Electronics Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 275 Billion |
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Forecast Year Market Size (2033) |
~ USD 550 Billion |
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Regional Scope |
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Global Automotive Electronics Market Size, Forecast, and Trend Highlights Over 2023 - 2033
The global automotive electronics market is estimated to garner a revenue of ~USD 550 Billion by the end of 2033 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 275 Billion in the year 2022. The growth of the market can be attributed to the increasing demand for automotive electronics systems, which are effectively contributing to enhanced vehicle safety worldwide. For instance, it is projected that electronic systems are anticipated to account for almost 50% of the total price of a new car by 2030. Besides this, the significantly rising adoption of electric vehicles and hybrid electric vehicles, along with an upsurge in the demand for infotainment features, is also propelling the growth of the global automotive electronics market over the projected timeframe.
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In addition to these, factors that are believed to fuel the market growth of automotive electronics include the rise in the demand for autonomous vehicles, proliferating automotive production, and the surging integration of highly advanced safety systems such as emergency call systems, automatic emergency braking, and lane departure warning systems to lower the road crashes. Electronic parts that are used in automobiles are utilized to be controlled digitally for most of the car’s operations, along with an embedded system that is used in the telematics, music system, radio, anti-lock braking system, parking ability, and safety airbags. With the recent advancements in automotive electronic control units as well as surging investment in research and development, the demand for automotive electronics is on the rise among automobile users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive electronics market during the forecast period. For instance, the European Union (EU) invested of more than USD 58 billion in automotive research and development, in 2020. Additionally, the growing replacement of mechanical devices by electrical devices is also predicted to present the potential for market expansion over the projected period.
Global Automotive Electronics Market: Growth Drivers and Challenges
Growth Drivers
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An Upsurge in the Number of Road Accidents – Road accidents have surged the demand for vehicle safety with the evolution of cars. Safety features such as airbags and others help to reduce the fatality risk. The automotive electronics market is expected to escalate with the rising number of road crashes so that they can be curbed. As per the World Health Organization’s Global Status Report on road safety 2018 edition, annually more than 1.2 million deaths were occurred as of road traffic crashes throughout the world.
- Worldwide Proliferation of Electric Vehicles – Recent years have seen a tremendous hike in the demand for and sale of electric vehicles. Passenger electric vehicles are now becoming incredibly popular as of their enhanced range, increased model availability, and improved performance. Thus, the increasing demand for electric vehicle is another major factor that is estimated to boost market growth over the forecast years. For instance, China’s stock of light-duty plug-in vehicles had reached roughly 7.8 million units by the end of 2021.
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Growing Use of Advanced Driver Assistance Systems – For instance, advanced driver assistance systems were projected to be in use in more than 1 billion cars worldwide at the end of 2020.
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Rising Number of Electronic Control Unit (ECU) – For instance, as per 2020 data, nowadays vehicles may have more than 100 ECUs, for controlling functions that range from essential to comfort, to security and access.
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Increasing Demand for Anti-Braking Systems – For instance, in the United States, all cars sold from September 1, 2012, are now required to have an ABS system.
Challenges
- High Production Cost of Electric Vehicles – The dynamically rising demand for electric vehicles is also increasing the demand for advanced driver assistance systems, along with the higher cost of lithium-ion batteries, as well as software that is being used in vehicles. These all factors are subsequently increasing the production cost of electric vehicles, which is estimated to hamper the growth of the market during the forecast period.
- Lower Penetration of Electronic Systems in Developing Countries
- Complicated Software Designs
Market Segmentation
The global automotive electronics market is segmented and analyzed for demand and supply by vehicle type into light commercial vehicle, heavy commercial vehicle, and passenger car. Out of the three types of segments, the passenger car segment is anticipated to garner the largest revenue by the end of 2033. The growth of the segment can be attributed to the growing demand for cars along with the surge in the sale of passenger cars worldwide. For instance, it was found that more than 55 million units of passenger cars were sold globally in the year 2021, showing an increase of nearly 4% from 2020. Moreover, the massive surge in the production of passenger cars is another key factor that is anticipated to accelerate the market growth of automotive electronics throughout the forecast period.
The global automotive electronics market is also segmented and analyzed for demand and supply by application into body electronics, advanced driver assistance system (ADAS), safety systems, infotainment, powertrain electronics, and others. Amongst these segments, the powertrain electronics segment is expected to garner a significant share over the forecast period. Powertrain electronics are key components such as the engine, gearbox, and transmission that help the vehicle move by supplying and managing electric power. Therefore, automotive manufacturers are spending huge amounts on research and development of more efficient automotive powertrain electronics. Besides this, simultaneous electrification in the automotive industry is also boosting the expansion of the power electronics segment. This, as a result, is projected to create several opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global automotive electronics market includes the following segments:
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By Component |
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By Application |
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By Vehicle Type |
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By Distribution Channel |
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Global Automotive Electronics Market Regional Synopsis
The Asia Pacific automotive electronics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the escalating sale of vehicles along with the rising production of vehicles. For instance, in India, the auto industry produced around 22,933,000 vehicles from April 2021 to March 2022. As for burgeoning electronic component manufacturing operations, nations such as Taiwan, Malaysia, South Korea, and Thailand have considerably contributed to the market expansion in the region. Further, the presence of a strong automobile network in the region, and the rapidly growing penetration of vehicles, are also anticipated to contribute to the market growth in the region. In addition, the surge in the proportion of technologically advanced manufacturing units is also anticipated to boost the market growth during the forecast period.
Furthermore, the Europe automotive electronics market is also estimated to display notable market growth by the end of 2033. The growth of the market can be attributed to the existence of major automotive manufacturers such as Skoda, BMW, Volkswagen, and so on in the region. In addition to this, the growing awareness regarding the safety and security features in a vehicle, and the massively rising count of prominent automobile assembly and engine production factories are some further significant factors that are projected to accelerate the automotive electronics market in the region over the projected time frame. For instance, in Europe, there are approximately 306 automotive manufacturing and engine manufacturing plants that manufacture passenger cars, light commercial vehicles, heavy-duty vehicles, buses, and engines.
Top Featured Companies Dominating the Global Automotive Electronics Market
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VALEO
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- DENSO Corporation
- Robert Bosch GmbH
- Continental AG
- Visteon Corporation
- Infineon Technologies AG
- HELLA GmbH & Co. KGaA
- Hitachi, Ltd.
- Renesas Electronics Corporation
- Texas Instruments Incorporated
