Automotive Electronics Market Size By Application (ADAS, Body Electronics, Entertainment, Powertrain, Safety Systems), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Russia, Czech Republic, Poland, Slovakia, Spain, Turkey, China, India, Japan, South Korea, Thailand, Australia, Malaysia, Philippines, Taiwan, Vietnam, Indonesia, Brazil, Mexico, Argentina, Iran, South Africa, Egypt), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: September 2017 | 150 Pages | Report ID: GMI183 Report Format: PDF
Global Automotive Electronics Market size was valued over USD 206.33 billion in 2016 and will surpass USD 395.91 billion by 2024.
North America Automotive Electronics Market, By Application, 2013-2024, (USD Billion)
Increasing automotive electronics adoption to deliver safety features including vehicle data recorder systems, emergency call systems and alcohol ignition interlocks are anticipated to fuel the market demand. As per EU assessment, over 40% of the on-board components in the entire car is electronic based and the percentage is expected to rise with the improvement in current regulations governing the automotive electronics market.
Growth in overall number of fleets along with their high average age will propel the automotive electronics market expansion. As per the Autocare Association, the U.S. automotive aftermarket is anticipated to surpass USD 270 billion in 2017, which is an increase of almost USD 36 billion from past four years. This has benefitted the U.S. GDP with a surge of 2%. In 2015, over 260 million passenger cars were registered in the country, an increase of 5 million over 2014.
Varying consumer preference for high tech luxuries including MP3 players, satellite radio, internet, navigational services and rear-seat entertainment systems coupled with high disposable income has enhanced the demand for state-of-the-art motor vehicles, thus driving the demand for elevated systems. In 2016, the Chinese government launched a new energy vehicle progression initiative including CCC certification program to revolutionize the Chinese automotive electronics market.
Development in the European regulatory framework to make mandatory including Tire Pressure Monitoring Systems (TPMS) and Antilock Braking Systems (ABS) technologies in the vehicle is anticipated to boost the automotive electronics market over the forecast period. The sales statistics for the region indicate a promising growth potential particularly owing to the rising sales of SUVs and pickup trucks.
Heavy investments coupled with technological advancements including electrical active suspension components in powertrains and electric vehicles will benefit the automotive electronics market growth. In addition, the products are well recognized to provide front lighting systems and driver support systems in several vehicles. Shifting trend of specialized in-vehicle infotainment is expected to propel automotive electronics market demand.
Globally, several players are undertaking research & development initiatives, aimed at advancing techniques for the expansion and development of electronics products used in vehicles. Moreover, commercial feasibility and end usage of the product is the prime focus of these researchers. The product also has an influence on the supply chain of resources including gases and chemicals utilized in the manufacturing of automobile electronics devices.
Growing demand for lithium-ion batteries along with cost-effective electronic compressors used in hybrid vehicles will lessen the manufacturing cost. Inadequate supply agreement between several OEMs and automobile electronics suppliers is projected to limit the product demand over the forecast period. However, preventive actions undertaken by various countries to decrease fatalities will provide significant opportunities for the automotive electronics market players.
Automotive Electronics Market, By Application
ADAS application sector is expected to observe a high growth owing to the enactment of several safety regulations that have to be adhered to, leading to their adoption in cars’ active security systems. These systems engage innovative software and sophisticated electronic components coupled with various sensors to enhance the safety of drivers and their surroundings, detect driver health, and improve the driving experience. The development of ADAS in vehicles will efficiently ensure road safety and in turn, will propel the automotive electronics market growth.
Automotive electronics market for entertainment system is expected to generate a value of more than USD 86 billion by 2024. Entertainment system acts as a diversified tool and is programmed to extend the trend in all segment of cars. The widespread application of this system includes location-based services, internet, entertainment, navigational services, and several communication functions consisting making and receiving calls via smartphone integration and value-added services. Further, a surge in disposable consumer income has boosted the growth of high-end and luxury car segments, thereby contributing to the automotive electronics market.
Increasing number of vehicle safety regulations over the compulsory usage of safety systems will propel the safety systems market. The foremost objective of these regulations is to lessen the occurrence and consequences of automobile accidents. Some of the vital devices used to confirm the safety of passengers include energy-absorbing steering systems, backup sensing systems, passenger sensing systems, padded knee bolsters, on & off switches for air bags, electro-chromatic mirrors or auto dimming mirrors and heads-up displays. Furthermore, rising consumer awareness regarding road safety will drive the automotive electronics market expansion.
Automotive Electronics Market, By Region
North America was valued over USD 50 billion in 2016 due to increasingly stringent safety regulations in the region. Several upcoming governmental regulations regarding vehicles, passengers as well as pedestrian safety have encouraged the automobile manufacturers to include the authorized features as a default offering. Further, the U.S. New Car Assessment Program (NCAP) has mandated lane departure warning systems and emergency braking systems to guarantee a five-star rating for passenger cars and thereby boosting the automotive electronics market growth.
European economy is gradually getting better after the economic downturn of 2009; this crash has affected the automotive electronics market in the region. Changing norms regarding emission and fuel economy are encouraging the vehicle manufactures in engine downsizing with the help of low-cost turbochargers. This helps in improving fuel efficiency of the vehicle and at the same time curbing emission levels. Germany is projected to be the largest automotive electronics market in the region generating more than USD 11 billion in 2016.
Asia Pacific automotive electronics market size is expected to witness a surge in overall product demand growth of over 9% by 2024. This is on account of the growing requirements to meet effective standards for reduced manufacturing costs, to improve product quality, and for customized vehicle features. Several emerging economies including India and China will positively impact the growth of the region.
Competitive Market Share
Global automotive electronics market is highly competitive due to large presence of industry players across the globe. Continued pervasion of advanced technology into almost all the main systems in vehicles is expected to drive market growth. Automakers are projected to increase the adoption of intelligent electronics that makes their vehicles environment-friendly and safe to drive. Some of the key players include Altera, Audiovox, Avago Technologies, Continental, Atmel, Denso, Delphi, Dow Corning, Bosch Group, Hitachi Automotive Systems, Infineon Technologies AG, Panasonic, Texas Instruments, TRW and Wipro.
Panasonic is a forward integrated firm involved in both production and distribution in the automotive electronics market. In 2014, the company had patented knob technology through which it gained capability of designing attractive parts with minimum package of space. Denso developed numerous driving backing systems that focuses on sensing technology for monitoring driving situations. Technologies including brake control systems, navigation systems and lighting controlling systems developed by the company helped it pursuing the inhibition of accidents and damages. The company’s latest technology HMI (Human Machine Interface) successfully delivers the driver with response appropriate to the driving condition in a safe and comprehensive way.
Automotive Electronics Industry Background
Automotive electronics market is driven by innovation and technological advancements. Companies invest massively in R&D operations to offer differentiated solutions to gain business share for different types and classes of vehicles.
Global average number of product utilized per vehicle has witnessed considerable increase over the years. An augmented number of features in the average car along with developing consumer dynamics and preferences may present potential growth prospects for new industry entrants. The burgeoning ADAS industry on account of rising safety initiatives will even lead to increased product demand in the automotive electronics market over the forecast period.
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