Automotive Electronics Market Size

Automotive Electronics Market Size

Automotive Electronics Market size surpassed USD 250 billion in 2022 and is projected to register 8% CAGR from 2023 to 2032, driven by the growing emphasis on improving passenger safety.

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Efforts to improve the driving experience and safety of heavy commercial vehicles would boost product penetration by 2032. For instance, in January 2022, Volvo Trucks unveiled Active Grip Control, a safety feature for electric trucks. The new technology can improve stability, acceleration, and braking in bad weather. Innovation in semiconductor technology, advancements in chip design, and the growing need for vehicles with higher safety ratings would offer promising growth prospects for the manufacturers in automotive electronics market by 2032.

The lack of skilled professionals and the high cost of repairing automotive electronics may hamper industry growth. The sector heavily relies on professionals that hold expertise across areas like vehicle mechanics, electric motor design, vehicle architecture and more. The high expenditure of maintenance and repair of vehicles fitted with safety features like Advanced Driver Assistance Systems (ADAS) could impede automotive electronics industry to some extent. Furthermore, expensive insurance policies for the maintenance and service of ADAS-equipped cars may also restrain market growth.