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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.
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.
Report Attribute | Details |
---|---|
Base Year: | 2022 |
Automotive Electronics Market Size in 2022: | USD 250 billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 8% |
2032 Value Projection: | USD 650 billion |
Historical Data for: | 2018 to 2022 |
No. of Pages: | 230 |
Tables, Charts & Figures: | 377 |
Segments covered: | Vehicle Type, Application |
Growth Drivers: | |
Pitfalls & Challenges: |
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.
Automotive electronics market share from commercial vehicles is poised to observe 5% growth during 2023 to 2032. The commercial vehicle sector is evolving at a stellar rate with the introduction of advanced autonomous and electric vehicles. Businesses in the transport and commercial logistics industry are heavily relying on connectivity solutions to streamline their operations. The use of features like electronic traction control, adaptive distance-control systems and ADAS, in heavy commercial vehicles will influence product demand.
In addition, in September 2022, Xos, Inc., a leading technology company, unveiled a suite of ADAS features that will be rigged into all Xos stepvans moving forward as a standard feature. Advancements like these will propel the usage of automotive electronics in commercial vehicles.
The industry size from the powertrain application segment is predicted to witness nearly 9% gains through 2032. Automotive production has increased in developing regions like Brazil, India and Mexico. Several regional and national regulatory organizations have introduced new guidelines to encourage automakers to employ cutting-edge production methods. These new manufacturing technologies will speed up powertrain assembly that enables companies to follow regulations.
Asia Pacific region captured around 40% share of the global automotive electronics market in 2022. Countries like India and China hold the presence of leading automakers. According to the Society of Indian Automobile Manufacturers, India is one of the third-largest auto sectors in the globe. The addition of advanced automotive features is aiding automakers to attract new customers and garner sales. Automakers are putting more emphasis on using electronics to adhere to stricter regulations, improve product quality, decrease production costs, and personalize car features.
Some of the key players operating in the automotive electronics industry include
These firms are investing in strategic initiatives including business expansions, acquisitions, mergers, partnerships, and collaborations to increase their presence.
Highlighting an occurrence, in December 2022, NXP announced a strategic partnership with Delta Electronics to create platforms for next-generation vehicles. The two firms have also revealed a joint lab aimed at advancing electrification options and the implementation of real-time applications based on S32E and S32Z processors from NXP. The advancement of S32K39 microcontrollers for domain and zonal control, safety processing, smart actuation, and EV control.
The COVID-19 pandemic affected various industries including the automotive sector worldwide. Manufacturing plants, factories, production work, etc. were all halted due to lockdown guidelines and COVID-19 restrictions which hampered the business growth in 2020. However, lifting of restrictions and the resumption of international trade is expected to augment industry progression till 2032.
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Market, By Vehicle type
Market, By Applications
The above information is provided on a regional and country basis for the following:
North America
Europe
Asia Pacific
Latin America
MEA