In 2023, it is predicted that the automotive electronics market to be worth USD 249.653 billion. Between 2023 and 2033, the automotive electronics industry developed at a CAGR of 4.6%, reaching USD 391.43 billion.
Recent years have seen a revolutionary change in the automotive sector, driven by the rapid development of electronic technologies. Automobile electronics have established themselves as the foundation of the automobile industry, encompassing everything from connectivity and autonomous driving to electrification and smart mobility.
The rising stringency of safety standards encourages research and development of sensor technology and signal processing algorithms, pushing growth.
Automotive electronics are electrically powered systems found in automobiles. Automotive electronic systems are generally used in areas such as electronic fuel injection, airbags, advanced driver assistance, and infotainment to boost the overall efficiency of the combined system. As electric and hybrid vehicles gain market traction, these systems are anticipated to become a primary emphasis area for electronic system providers.
OEMs are increasingly reliant on electronics to provide a high level of safety. Electronic automobile components to account for around 35% of overall vehicle costs 2020. By 2030, automotive electronics should make up about 50% of the cost of a car, thanks to technological advancements.
Increased application areas for power electronic systems in the automotive sector due to technological developments like electrical active suspensions and power trains for electric vehicles are anticipated to drive the automotive electronics market growth throughout the analysis period.
The main factors projected to restrain the growth of the automotive electronics market shortly, on the other hand, are the low adoption of automotive electronics in recently industrialized countries and the rise in the overall cost of the end-product owing to the integration of automotive electronics.
How Automotive Electronics is Paving the Way
Market (From 2018 to 2022):
| Market HCAGR (From 2018 to 2022) | 2.9% |
|---|---|
| Market Size - 2018 | USD 219.12 billion |
| Market Size - 2022 | USD 241.678 billion |
Market (From 2023 to 2033):
| Market CAGR (From 2023 to 2033) | 4.6% |
|---|---|
| Market Size - 2023 | USD 249.653 billion |
| Market Size - 2033 | USD 391.43 billion |
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Between 2018 and 2022, the automotive electronics market expanded significantly, propelled by technical improvements and rising demand for car connectivity and safety features. Advanced driver assistance systems (ADAS), infotainment systems, and electric car components all saw a spike in market acceptance during this time.
The automotive electronics industry is anticipated to grow even more quickly between 2023 and 2033. The growing acceptance of autonomous vehicles explains this, the proliferation of electric cars, and the incorporation of cutting-edge communication and sensor technologies. The demand for advanced electronics is expected to increase as the automobile sector develops, changing the face of transportation.
Automotive Electronics Pioneering Safety Innovation
The need for cutting-edge safety technologies, including advanced driver assistance systems (ADAS), collision avoidance systems, lane departure warning systems, and adaptive cruise control, is increasing in the car industry. The need for car electronics has expanded due to these features, which strongly rely on them to work.
Accelerating Growth through Consumer Demand for Connectivity in Automotive Electronics
Modern consumers demand modern entertainment systems and seamless communication in their cars. This includes connectivity to external devices, in-car entertainment, smartphone integration, and navigation systems. To integrate these technologies, high-end automotive electronics components are needed, expanding the automotive electronics industry.
Igniting Innovation in the Automotive Electronics Industry with EVs
The transition to electric vehicles greatly influences the automotive electronics industry. EVs heavily rely on sophisticated electronic systems for power management, battery monitoring, electric motor control, and charging infrastructure. The need for automotive electronics is anticipated to rise dramatically as electric car adoption increases.
Government Guidelines Supercharge the Automotive Electronics Business
To increase road safety and lower emissions, governments worldwide are putting strict laws and safety standards in place. These rules frequently call for installing cutting-edge electronic equipment in cars, such as emission control systems, electronic stability control, and tire pressure monitoring systems (TPMS). The adoption of vehicle electronics is driven by compliance with certain rules.
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The high production cost of electric vehicles is simultaneously escalating the overall cost of hybrid cars, which impede market growth for automotive electronics during the forecast period.
The surge in the adoption of electric vehicles (EVs) has spurred the advancement of cutting-edge driver assistance systems (ADAS) and infotainment systems. The massive investment in research and development activities by companies, along with the high cost of lithium-ion batteries and software used in vehicles, may consequently surge the manufacturing cost, thus, leading to costly EVs. Besides, the complexities of electric cars and high maintenance and replacement costs may soon hinder the automotive electronics market.
The automotive electronics market is expected to face challenges due to the low adoption of automotive electronics in newly industrialized countries. The integration of automotive electronics contributes to an increase in the cost of end-products, which can hinder the market growth for automotive electronics.
| Attributes | Details |
|---|---|
| United States Market Share - 2023 | 21.80% |
| Australia Market Share - 2023 | 0.20% |
Future Market Insights predicts that North America may offer tremendous development potential for the automotive electronics market, with a share of 15.0% in 2023.
Due to the developing EV ecosystem in wealthy nations like the US, North America presents lucrative growth potential. More than 80% of motor vehicle manufacturing is done in the United States, thanks to significant producers like Continental AG, Autoliv Inc., and Robet Bosch GmbH. As a result, North American nations may have a greater need for car electronics.
Algorithms for signal processing and sensor technology are being developed and innovated due to increasingly strict safety regulations. During the analysis period, these factors are anticipated to accelerate the expansion of the automotive electronics market.
| Attributes | Details |
|---|---|
| Japan Market Share - 2023 | 8.30% |
| China Market CAGR (From 2023 to 2033) | 5.50% |
| India Market CAGR (From 2023 to 2033) | 6.0% |
Future Market Insights projects that Asia-Pacific to increase with good market growth chances and reach a sizeable proportion of 12.4% in 2023.
Due to the thriving electronic component manufacturing operations, nations including Taiwan, South Korea, Malaysia, and Thailand have considerably contributed to the market expansion for automotive electronics. India, China, and Japan supply most of Asia Pacific's car electronics needs. The small number of automotive electronics producers presents a fantastic business opportunity for regional suppliers to take advantage of the domestic demand, making the rest of Asia Pacific a desirable investment location.
The regional government has many funding and subsidy initiatives planned to boost the nation's sales of electric automobiles.
The South Korean Environment Ministry revealed the 2021 electric vehicle subsidy budget in January 2021, which amounts to around USD 891.7 million. Electric vehicle models priced under USD 53,000 may be fully subsidized. These initiatives may accelerate the region's production of electric automobiles, spurring market expansion for automotive electronics.
| Attributes | Details |
|---|---|
| Germany Market Share - 2023 | 7.60% |
| United Kingdom Market CAGR (From 2023 to 2033) | 3.30% |
Europe dominates the automotive electronics market. Between 2023 and 2033, the region is anticipated to grow at over 29.0%.
In the future, France is projected to become the most attractive location for investments in automotive electronics. However, given its strong position in the automotive electronics industry, Germany is predicted to lead.
During the projected period, an increase in technical breakthroughs in the area combined with the use of technologies like the Internet of Things and artificial intelligence in cars is anticipated to surge market growth for automotive electronics.
Impact of IoT and AI on car functionalities in the european automotive electronics market. It has improved the ride assistance systems and boosted driver communication with the vehicle during the last year. For instance, the inclusion of cameras and sensors in cars to help drivers with parking or other proximity functions is anticipated to fuel the expansion of the automotive electronics sector in the area.
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| Category | Type |
|---|---|
| Leading Segment | Body Electronics |
| Market Share | 22.40% |
The automotive electronics market's dominant section is Body Electronics. It includes a wide range of electronic systems and parts that are mostly devoted to the features and functions found within vehicles.
A vital part of improving comfort, convenience, and safety inside the car is played by body electronics. Some of these systems are infotainment systems, HVAC (Heating, Ventilation, and Air Conditioning) controls, power windows, central locking systems, lighting controls, and other sensors. Body Electronics has expanded due to the rising demand for cutting-edge technologies like touchscreen displays, networking possibilities, and driver assistance systems.
Body Electronics is now a well-known global leader in the Automotive Electronics sector thanks to the incorporation of cutting-edge technologies like IoT and AI.
| Category | Vehicle Type |
|---|---|
| Leading Segment | Passenger cars |
| Market Share | 68.90% |
Due to increased passenger car sales and production, the passenger car segment commands a significant market share in vehicle types for automotive electronics. The automotive electronics industry is expanding due to the car industry's quick uptake of cutting-edge technologies like infotainment and driver assistance systems. The strict government regulations governing fuel efficiency and the safety of both drivers and passengers are also boosting industry expansion.
The segment for electric vehicles (EVs) is expanding exponentially. Automakers are forced to switch from conventional gasoline vehicles to electric ones due to rising fuel emission levels and carbon footprints. This aspect is anticipated to have rapid market growth for automotive electronics.
Leading automotive electronics manufacturers of automotive electronics are concentrating on utilising cutting-edge technologies to develop ground-breaking electronic solutions for automobiles.
To combat the fierce industry competition, prominent automotive electronics manufacturers are emphasising strategies including fresh product launches, business development, collaborations, and acquisition.
| Company | Texas Instruments |
|---|---|
| Strategy | Texas Instruments Partners with Smart Eye for Innovative Interior Sensing |
| Details | Texas Instruments, a renowned semiconductor manufacturer, established a partnership with Smart Eye, an AI firm that specialises in human insight, in March 2023. The goal of the partnership was to give manufacturers with creative interior sensing technologies that improves driver safety and the in-cabin experience. |
| Company | Continental AG |
|---|---|
| Strategy | Introducing the PremiumContact 7 |
| Details | Continental AG declared in August 2022 that dealers to be able to purchase the new PremiumContact 7 as early as the following autumn. The handling, braking performance, and ride comfort of the PremiumContact 7 have all been enhanced in comparison to its predecessor thanks to new technologies and design changes. Continental gave top priority to overall drive type safety during development. |
| Company | DENSO Corporation |
|---|---|
| Strategy | DENSO Introduces Advanced Drive with LiDAR for Lexus LS |
| Details | The creation of items for the new Lexus LS that include cutting-edge driver assistance technologies was announced by DENSO Corporation in April 2021. LiDAR can be included into the recently created Advanced Drive to identify the forms of adjacent cars and roads. |
| Company | Renesas Electronics Corporation |
|---|---|
| Strategy | Renesas and Microsoft Join Forces in Automotive Innovation |
| Details | Renesas Electronics Corporation established cooperation with Microsoft in January 2021 to accelerate the development of connected autos. The Renesas R-Car Starter Kit, built on the R-Car Automotive SoC, is now available as a development environment for the MCVP (Microsoft Connected Vehicle Platform). |
The global market size is to reach USD 391.43 billion by 2033.
The market progressed at a moderate pace of 2.9% from 2018 to 2022.
The market is expected to advance at a CAGR of 4.6% through 2033.
Electric vehicles' high production and, maintenance and replacement costs may hinder market growth.
The market in the United States will likely generate 21.8% revenue in 2023.
Japan is expected to contribute 8.3% of the global share in the market in 2023.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 5.1. Advanced Driver Assistance Systems (ADAS) 5.2. Body Electronics 5.3. Entertainment 5.4. Powertrain 5.5. Safety Systems 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle 6.1. Light Commercial Vehicles 6.2. Passenger Vehicles 6.3. Heavy Commercial Vehicles 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Continental AG 17.2. DENSO Corporation 17.3. Hella GmbH & Co. KGaA 17.4. Infineon Technologies AG 17.5. Robert Bosch GmbH 17.6. Valeo Inc. 17.7. ZF Friedrichshafen AG 17.8. Hitachi Automotive Systems Ltd. 17.9. Visteon Corporation 17.10. Xilinx Inc. 18. Assumptions & Acronyms Used 19. Research Methodology
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