Automotive Electronics Market Size by Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (ADAS [Adaptive Cruise Control, Blind Spot Detection, Parking Assistance, Automated Emergency Braking, Night Vision, Lane Department Warning], Body Electronics, Infotainment & Communication [Audio, Display, Navigation, Head-Up Display, Communication], Powertrain [Engine Controllers, Transmission Drivetrain, Exhaust, xEV], Safety Systems), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2030

Industry Trends

Automotive Electronics Market size valued at USD 285 billion in 2018 and is estimated to grow at a CAGR of 7% from 2019 to 2030.
 

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Automotive electronics are the electrically operated systems integrated and mounted in several vehicle applications such as body electronics, safety systems, and infotainment. The automotive market demand is experiencing trends related to advanced mobility solutions, powertrain & vehicle system electrification, and advanced safety systems. Due to the increased implementation of these systems in vehicles, the penetration of automotive electronics has also increased, further creating the demand for automotive electronics products across the globe. The digitization of automotive systems by including connected technologies, in-vehicle communication, and ADAS & automated systems creates several opportunities for market growth.
 

The growing integration & adoption of automotive electronics in modern vehicles to deliver enhanced safety & comfort to consumers is one of the major factors driving the automotive electronics industry growth. Several features offered by OEMs including Automated Emergency Braking (AEB) system, airbag system, and lane departure warning, etc. have significantly decreased road accidents worldwide. Automotive electronics along with the presence of broad computing technologies and connected features are enhancing automobile capabilities. Alcohol ignition interlock, accident data recorder system, and emergency call system are gaining attraction, which will propel the market share. These advancements have been possible owing to the considerable growth of electronic component in newly manufactured vehicles.
 

The increasing adoption of electric and hybrid vehicles is one of the major market factors in countries such as China, India, U.S. Japan, France etc. will further contribute towards the increase of automotive electronics market share over the forecast period. European countries are focusing their efforts to phase out diesel-combustion engines and consequently gasoline engines by 2030. In October 2017, Copenhagen’s mayor announced its plan to ban diesel cars registered after 2018.  The implementation of automotive electronics helps to increase reliability and lower the overall vehicle weight. Furthermore, governments are taking initiatives to enhance the production of electric vehicles to reduce fuel consumption and pollution-related issues, which will boost the industry forecast. For instance, the Government of India under its FAME scheme (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) has shortlisted 11 cities in the country to introduce electric vehicles in their public transport system creating market opportunities for automotive electronics in the region.
 

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Increasing integration of ADAS systems in passenger vehicles

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Based on application, the industry has been segmented into ADAS, body electronics, infotainment & communication, powertrain, and safety systems.
 

ADAS automotive electronics market revenue is projected to exhibit a CAGR of over 9.5% industry forecast by 2030 owing to safety and driving benefits offered by the system. ADAS a includes various systems such as adaptive cruise control, parking assistance, blind spot detection, night vision, and automated braking systems. These systems are increasingly being deployed in vehicles due to benefits such as added driving assistance in night driving & bad weather conditions.
 

Moreover, increasing safety & security regulations by governments across the globe are projected to drive the market size for ADAS applications. For instance, in September 2018, in India, the Union Minister for Road and Highway Transport announced the mandating of ADAS system for all cars by 2022 to enhance road safety in India. The need to reduce road fatalities and ensure reduced traffic congestion accounts for the deployment of ADAS in all vehicle types. Moreover, OEMs are focusing to implement various ADAS systems, such as adaptive cruise control, parking assistance, blind-spot detection, night vision, and automated braking systems, to enhance the driving experience to drive market demand. For instance, in May 2018, Magna International announced its collaboration with Renesas Electronics Corporation to accelerate the development and adoption of advanced ADAS driving the market growth.
 

Growing integration of electronic systems in passenger cars to fuel market growth

The industry trends reflect that passenger car segment is dominating the market demand and is expected to reach over USD 550 billion by 2030. Growing production and consumption of passenger vehicles across the globe is generating a high demand for automotive electronics system and components such as powertrain solution, infotainment system, and safety systems. OEMs in the global automobile sector are developing vehicles that provide enhanced comfort & safety solutions to address the rapidly changing consumer demands. Furthermore, increase in consumer disposable income and high spending capabilities on luxury products allow OEMs to develop high-end passenger cars in the market size.
 

Flourishing automotive sector in the Asia Pacific region to create market opportunities

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Asia pacific will dominate the automotive electronics market and is growing at a CAGR of around 8% owing to the strong vehicle & component manufacturing sector in Japan, China, and South Korea. There is easy & cheap availability of raw materials and components due to the presence of several suppliers in these markets. Automotive suppliers in the region are more profitable compared to the European and North American counterparts due to the provision of low market price and high-quality automotive electronics products in huge quantities. These companies mainly supply their products to the OEMs based in the U.S. and Europe to earn larger profit margins and fulfill market demand.
 

Moreover, China market insights show a significant increase in the demand for automotive electronics due to the high automotive production of passenger vehicles and adoption of electric vehicles in the region. As a result, there is a huge requirement of enhanced powertrain and engine management systems that provide better fuel consumption capabilities. In 2018, according to the China Association of Automobile Manufacturers, approximately 28 million vehicles were produced, which may accelerate the market value in the region.  Moreover, in June 2018, the Chinese Government has announced subsidy payments for electric vehicle consumers depending on the vehicle range which will further contribute in a flourishing automotive market in 2018. The total subsidy funded by the government on electric vehicle purchases varies from 250 miles or more in USD 10,000. According to the International Energy Agency, China is expected to account for 57% share of the electronic vehicle market forecasts by 2030.
 

New product developments are the major industry growth strategies

The automotive industry is extremely competitive owing to the presence of numerous strong and leading automobile system manufacturers in the market worldwide with their broad distribution network.
 

The market players are continuously undergoing product development and innovation strategies to offer application-specific products and address the global automotive electronics demand. For instance, in October 2018, Broadcom, Inc. announced the expansion of its automotive Ethernet portfolio and developed innovative PHY, smart camera MCU, and secure switches. The new products are developed to strengthen in-vehicle connectivity, ADAS, infotainment, and smart mobility solutions provided by the company.
 

The prominent companies present in the automotive electronics industry are Magna International, Continental AG, Bosch Group, Altera Corporation, Infineon Technologies, Lear Corporation, Delphi Automotive, Hitachi Automotive Systems, Texas Instruments, ZF Friedrichshafen AG, Voxx International Corporation, Faurecia, Hyundai Mobis, and Valeo.
 

The automotive electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2030 for the following segments:

Market by Vehicle Type

• Passenger cars
• Commercial vehicles

Market by Application

• ADAS
  • Adaptive cruise control
  • Blind spot detection
  • Parking assistance
  • Automated emergency braking
  • Night vision
  • Lane department warning
• Body electronics
• Infotainment & communication
  • Audio  
  • Display
  • Navigation
  • Head-up display
  • Communication
• Powertrain
  • Engine controllers
  • Transmission drivetrain
  • Exhaust
  • xEV
• Safety systems

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe 
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Poland
  • Sweden
  • Russia 
• Asia Pacific 
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Malaysia
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa