Automotive Electronics Market size is set to surpass USD 380 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising adoption of in-vehicle infotainment and communication systems across passenger cars is expected to boost the automotive electronics industry growth. The incorporation of in-vehicle infotainment systems in passenger cars helps to achieve excellent entertainment facility, high comfort and safety in vehicles. The post-COVID-19 pandemic has led automotive OEMs to increase the production of passenger cars to cater to high demand in the market. According to the International Organization of Motor Vehicle Manufacturers (OICA), the passenger car production witnessed 15.9% y-o-y growth in Q1 2021 compared to Q1 2020. The passenger cars production increased from 12.6 million in Q1 2020 to 14.7 million in Q1 2021.
High costs associated with ADAS systems is one of the major factors restraining the automotive electronics market growth. The ADAS system requires a sophisticated assembly of sensors, cameras, processing boards, high-quality electronics components coupled with complex hardware & software integrations with machine learning & AI chipsets. These high-end components and software systems increase the cost of ADAS installations in vehicles. Adding to this, the limited awareness about the benefits of ADAS technologies across developing and under-developed economies is poised to limit the market share.
Get more details on this report - Request Free Sample PDF
Favorable government policies toward scrapping of old commercial vehicles will positively impact market expansion
The commercial vehicles segment captured around 15% market revenue share in 2020 and is projected to grow at 4% CAGR through 2027. Increasing adoption of advanced powertrain systems such as power electric drivetrains, engine controllers, and exhaust gas recirculation (ERG) systems in commercial vehicles is boosting the industry growth. These systems are highly integrated with various automotive electronics such as power-IGBT, power-MOSFETs, and intelligent power modules (IPMs) to provide high power efficiency and reliability in commercial vehicles. The increasing advancement in powertrain systems with stringent government regulations mandating fuel-efficient engines in commercial vehicles will add new growth opportunities to automotive electronics manufacturers.
Several government bodies across Asia Pacific and Europe are emphasizing on developing policies related to scrapping of old commercial vehicles in the region. The adoption of such favorable policies will help to decrease air pollution and increase the sales of light and heavy commercial vehicles in coming years, thus supporting the market growth.
Browse key industry insights spread across 230 pages with 333 market data tables and 27 figures & charts from the report, “Automotive Electronics Market Size By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (Advanced Driver Assistance System (ADAS), Body Electronics, Infotainment & Communication [Audio, Display, Navigation, Head-Up Display, Communication], Powertrain [Engine Controllers, Transmission Drivetrain, Exhaust, xEV], Safety Systems), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Rising adoption of passive safety systems in vehicles will spur the automotive electronics industry growth
The safety systems application held around 15% market share in 2020 and is set to observe at 5% CAGR through 2027. Increasing integration of passive safety systems, such as air-brake systems, pre-tensioned seatbelts, and airbags, which are highly integrated automotive electronics and sensors is driving the segment demand.
According to the Association for Safety International Road Travel (ASIRT), about 1.35 million people die in road crash every year with approximately 3,700 fatalities every day due to road accidents. This has led several government organizations, such as National Highway Traffic Safety Administration (NHTSA) and New Car Assessment Program (NCAP), to encourage automotive manufacturers to adopt passive safety systems in their vehicle portfolio. The incorporation of passive safety systems will help to improve the pedestrian and passenger safety, thus accelerating the market adoption.
Proliferation of electric vehicles in Europe will fuel the market revenue
The Europe automotive electronics market size is poised to register growth rate of above 4% through 2027 propelled by increasing deployment of battery electric vehicles (BEVs) and plug-in electric vehicles (PHEVs) across major European economies including Germany, France, Italy, and the UK. As of December 2020, Germany and France accounts for over 700,000 units and 470,000 units of registered PHEVs, respectively. Adding to this, major automotive OEMs are extensively investing in modernization of existing automotive plants to increase the EV production in the region.
For instance, in February 2021, Ford Motors announced to invest USD 1 billion to modernize its EV production facility located in Cologne, Germany. The company aims to go all-electric in Europe region by 2030. Such large-scale investments in the industry will add new market opportunities to European automotive electronics manufacturers.
Key players operating in the automotive electronics industry include Bosch Group, BorgWarner Inc., Broadcom, Inc., Continental AG, Denso Corporation, Harman International, Hyundai Mobis, Magna International, Inc., Texas Instruments Incorporated, among others. These market players are continuously involved in new strategies such as mergers and acquisitions to accelerate their product offerings and cater to high demand in the industry. For instance, in October 2020, BorgWarner Inc. announced the acquisition of Delphi Technologies, under a USD 3.3 billion deal. The strategic acquisition will help the company to accelerate its market potential in electric propulsion systems for heavy-duty trucks and cars.
Explore More on Related Topics: