The global automotive electronics market was valued at $282.2 billion in 2021 and it is expected to reach $1400 billion at a CAGR of 15.9% between 2022 and 2032. Over the projected period, demand is anticipated to increase due to the increased integration and implementation of modern safety systems such as airbags, automatic emergency braking, parking assistance systems, and lane departure warning to reduce traffic accidents. The adoption of safety features like emergency call systems, alcohol ignition interlocks, and accident data recorder systems to protect passengers inside vehicles is also likely to fuel market expansion throughout the forecast period.
Through the integration of some safety equipment such as airbags and lane management systems, automotive electronics components are employed in automobiles to improve performance and increase safety. Vehicle telematics systems, entertainment systems, and electronic fuel injection are just a few of the components that heavily rely on automotive electronics. In addition, the need for automotive electronics, for the numerous components in automotive vehicles, is further increasing due to rising sales of hybrid or electric vehicles and the development of autonomous or driverless vehicles. Electronics are used in autonomous vehicles for a variety of purposes, including entertainment systems, cameras, radar, LiDAR, and GPS.
The need for automotive electronics components is anticipated to increase as hybrid electric vehicles (HEV) and electric vehicles (EV) become more widely used. Additionally, replacing mechanical parts with electronic parts, such as using electronic switches rather than relays, is another way that electronics can meet the diverse needs of the automotive industry while at the same time boosting reliability and lightning wire harnesses. Over the projection period, it is also anticipated that government laws to reduce traffic accidents and technological improvements connected to in-vehicle safety will increase demand.
Source: SAI Research
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Moreover, the demand for in-vehicle data storage is growing in response to the desire for in-car infotainment systems, which are in high demand due to their improved comfort, effectiveness, and convenience. This is seen to be one of the key factors influencing the market for infotainment applications. Furthermore, the need for automotive electronics components is anticipated to increase as hybrid electric vehicles (HEV) and electric vehicles (EV) become more widely used. Another way that electronics may meet the diverse needs of the automobile industry is by replacing mechanical components with electronic ones, such as using electronic switches rather than relays. This reduces the weight of wire harnesses while also improving reliability. Over the projection period, it is also anticipated that government laws to reduce traffic accidents and technological improvements connected to in-vehicle safety will increase demand.
Based on component type, the current carrying device category has led the market with significant growth and is also expected to accelerate the market growth during the forecast period. Moreover, The term "current carrying capacity" (CCC) refers to the amount of current that can be carried at a given temperature in a connector set without surpassing the materials' maximum operating temperature. The huge market share of current-carrying devices in the component segment is due to the high cost and numerous electronic components used in vehicles, including electronic switches, fuses, connectors, and wiring harnesses. However, the sensors category is also estimated to propel the market due to its rising demand. Revenue growth is anticipated to be fueled by supportive governmental initiatives for passenger safety and security in various countries.
In terms of application type, the safety systems segment accounted for the largest share of the market and is also anticipated to drive market growth during the forecast period. Growing consumer awareness of technology advancements affecting safety equipment in automobiles is anticipated to be a significant development factor for the safety systems market. On the other hand, ADAS systems that incorporate essential driving aid features can dramatically increase vehicle safety. The goal of ADAS systems is to lessen the effects of human error. For example, systems that can identify the risk of a collision with a pedestrian or bike and inform the driver in real-time or apply the brakes automatically might avert 7,500 accidents on Spanish roads.
Geographically, North America holds most of the market share and is also expected to hold its dominant position during the forecast period from 2022 to 2032. Most of the key players are situated in several nations of this region which is an advantage for this market. For instance, the North American market is dominated by component makers including TRW Automotive, Continental Corporation, Robert Bosch GmbH, Autoliv, Inc., and others. On the other hand, the Asia-Pacific region is also expected to become a second-growing market due to the rising adoption of automotive electronics and its innovative productions.
According to the study, key players such as AMD (U.S), Broadcom Inc (U.S), Continental AG (Germany), Denso (Japan), Hitachi (Japan), Intel (U.S), Infineon Technologies (Germany), Robert Bosch Stiftung (Germany), Microchip Technology (U.S), NXP Semiconductors (Netherlands), Panasonic (Japan), Stellantis (Italy), Visteon Corporation (U.S), Valeo (France), among others are leading the global automotive electronics market.
|Market Size in 2021||US$ 282.2 Billion|
|Market Volume Projection by 2032||US$ 1400 Billion|
|Forecast Period 2022 to 2032 CAGR||15.9%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Component Type: Sensors, Electronic Control Unit, Current Carrying Devices & Others
By Application Type: ADAS, Body Electronics, Safety Systems, Powertrain Electronics, Infotainment & Others
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||AMD (U.S), Broadcom Inc (U.S), Continental AG (Germany), Denso (Japan), Hitachi (Japan), Intel (U.S), Infineon Technologies (Germany), Robert Bosch Stiftung (Germany), Microchip Technology (U.S), NXP Semiconductors (Netherlands), Panasonic (Japan), Stellantis (Italy), Visteon Corporation (U.S), Valeo (France), among others.|
The Global Automotive Electronics Market – by Component Type:
The Global Automotive Electronics Market – by Application Type:
The Global Automotive Electronics Market – by Regions:
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