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.
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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.
- 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.
- 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.
- 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
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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.
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Lower Penetration of Electronic Systems in Developing Countries
- Complicated Software Designs
Automotive Electronics Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
7.3% |
|
Base Year Market Size (2025) |
USD 295.51 Billion |
|
Forecast Year Market Size (2035) |
USD 597.82 Billion |
|
Regional Scope |
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