Global Automotive Electronics Market valued at $607,574.4M by 2032
Global Automotive Electronics Market demand is anticipated to be valued at $300,332.43m in 2022, forecast to grow at a CAGR of 7.30% to be valued at $607,574.4m from 2022 to 2032.
Growth is attributed to the increasingly stringent safety norms, which are driving innovation and development of sensor technology and signal processing algorithms.
Automotive electronics comprise of electrically operated systems deployed in vehicles. Electronic fuel injection, airbags, advanced driver assistance, and infotainment are some of the areas where automotive electronic systems are primarily used to increase the overall efficiency of the combined system.
As electric and hybrid vehicles are gaining traction in the market, these systems are likely to become key focus areas for electronic system providers. Technological advancements such as electrical active suspensions and power trains for electric vehicles in the automotive industry are likely to increase the application areas for power electronic systems in the automotive sector.
Moreover, government safety programmes such as New Car Assessment Programmes (NCAP) throughout the world are primarily targeting to increase overall road safety by pushing towards the development and evolution of technologies to reduce the impact and likelihood of accidents, for example, improvement in airbags and stability of control systems.
As per estimation, around 40% of onboard components throughout a car are electronic based and this percentage is most likely to increase with improvement in the current regulations governing the automotive industry.
Automotive Electronics Market: drivers and challenges
Increasing safety concerns leading to advanced safety systems are primarily expected to drive the global automotive electronics market. Moreover, powertrains, wheels, parking assistance, and electrical suspensions are the major application areas most likely to spur the growth of the global automotive electronics market.
Also, increasing environmental sustainability plus rising demand for cutting-edge infotainment systems will increase the demand for complex electronics systems thereby driving the global automotive electronics market.
Protection of complex electronic systems from damaging electrical hazards and stringent government regulations regarding vehicle safety are some of the major challenges facing designers in the automotive electronics industry.
Automotive Electronics Market: overview
By region, the automotive electronics market is segmented into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa. The global automotive electronics market is expected to grow at a significant rate over the forecast period. Developed economies such as the US and UK are anticipated to play a major role in the first half of the forecast period while during the second half of the forecast period emerging economies such as India, China and Brazil are forecast to surge in the demand for automotive electronics
Automotive Electronics Market: key players
Some of the major players identified across the global automotive electronics market include OMRON Corporation, Robert Bosch GmbH, Infineon Technologies AG, HGM Automotive Electronics, Hitachi, Ltd., Delta Electronics, Inc., Atotech Deutschland GmbH, and ZF TRW.
Major players in automotive electronics systems are partnering with OEMs. Key players across the value chain are focusing primarily on miniaturisation, lightweight materials, electrification, and intelligence, thus considering automotive electronics as a key factor in competing through differentiation.