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Automotive Electronics Market Analysis by Product Type (Engine Electronics, Transmission Electronics, Chassis Electronics, Passive Safety, Driver Assistance, Passenger Comfort, and Entertainment Systems); by Distribution Channel (Original Equipment Manufacturer (OEM), and Aftermarket); and by Application (Passenger Vehicles, and Commercial Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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  • Valeo – collaborated with the Atomic Energy Commission (CEA) and the French Alternative Energies signed an agreement to conduct advanced research in power electronics to prepare for upcoming electric mobility.

  • Denso Corporation - announced that it is providing electrification components to Toyota and Subaru’s all-new, all-electric bZ4X and SOLTERRA.

Global Automotive Electronics Market Size, Forecast, and Trend Highlights Over 2023 - 2033

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 275 Billion

Forecast Year Market Size (2033)

~ USD 550 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)


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 is primarily attributed to the increasing demand of automotive electronics system as it is effectively contributing in enhanced vehicle safety worldwide. 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 vehicle is also propelling the growth of the automotive electronic market over the projected timeframe.

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Electronic parts that are used in automobiles are utilized to be controlled digitally for most of the car operations along with an embedded system that are 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 rising research and development, the demand for automotive electronics is on the rise amongst the 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, European Union (EU) made an investment of more than USD 58 billion in automotive research and development, in 2020.

Global Automotive Electronics Market: Growth Drivers and Challenges

Growth Drivers

  • Upsurge in the Number of Road Accidents – Road accidents have surged the demand for vehicle safety with the evolution of the cars. Safety features such as airbags and others help to reduce the fatality risk. Automotive electronics market is expected to escalate with rising number of road crashes, so that it can be curbed. For instance, as per the World Health Organization’s (WHO), Global Status Report on road safety 2018, owing to the road traffic crashes, annually more than 1.2 million deaths occur worldwide.

  • Growing Use of Advanced Driver Assistance Systems – For instance, the advanced driver assistance systems were projected to be in use in more than 1 billion cars worldwide at the end of 2020.

  • Rising Number of Electronic Control Unit (ECU) – For instance, as per 2020 data, now-a-days vehicles may have more than 100 ECUs, for controlling functions that range from the essential to comfort, to security and access.

  • Increasing Demand for Anti Breaking Systems – For instance, all cars sold in the United States are required to have an ABS system from September 1, 2012.

  • Proliferation in Electric Vehicles – For instance, the inventory of light-duty plug-in vehicles reached roughly 7.8 million units by the end of 2019.


  • High Production Cost of Electric Vehicles – The dynamically rising demand for electric vehicles is highly increasing the demand of highly advanced driver assistance systems, along with the higher cost of lithium-ion batteries, as well as software which 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

The global automotive electronics market is segmented and analyzed for demand and supply by application into passenger vehicles and commercial vehicles. Amongst these segments, the passenger vehicles segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand of cars along with the surge in the sale of cars worldwide. For instance, it was found that, more than 55 million units of cars were sold globally in the year 2021, showing an increase of nearly 4% from 2020.

Global Automotive Electronics Market Regional Synopsis

The region name Asia Pacific market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, backed by the presence of a strong automobile network in the region, growing penetration of vehicles, as well as escalating sale of vehicles along with the rising production of vehicles. For instance, in India, the auto industry produced a total ~22,933,000 vehicles from April 2021 to March 2022.

Market Segmentation

Our in-depth analysis of the global automotive electronics market includes the following segments:

      By Product Type

  • Engine Electronics
  • Transmission Electronics
  • Chassis Electronics
  • Passive Safety
  • Driver Assistance
  • Passenger Comfort
  • Entertainment Systems


     By Distribution Channel

  • Original Equipment Manufacturer (OEM)
  • Aftermarket

     By Application

  • Passenger Vehicles
  • Commercial Vehicles

Top Featured Companies Dominating the Global Automotive Electronics Market

  • 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.
  • Advanced Micro Devices, Inc.
  • Renesas Electronics Corporation


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