Global Automotive Electronics Market Size to hit $645bn by 2030
Published Date: November 11, 2019 Authors: Ankita Bhutani, Shubhangi Yadav
Automotive Electronics Market size is predicted to surpass USD 645 billion by 2030; according to a new research report by Global Market Insights, Inc.
Rising investment in research & development for autonomous driving system and technology, such as connected cars and autonomous driving, is further boosting the demand for the automotive electronics market. This results in the increasing demand for ADAS, safety system, fuel injection module, and powertrain deployed in automated vehicles. Various players in the autonomous vehicles market are developing and adopting different strategies to differentiate their product features. For instance, in August 2018, Aisin Seiki Co., Ltd., Advics Co., Ltd., JTEKT Corporation, and Denso Corporation entered into a joint venture for developing ECU software solutions for automated driving applications. Traditional automakers are heavily investing in research & development activities to introduce advance automotive electronics in their autonomous vehicles. For instance, Google has developed a self-driving car, Waymo, with integrated AI technology and enhanced features that will reduce road fatalities. In March 2018, Waymo announced the development of its self-driving trucks in Arizona and California, creating opportunities for industry growth.
Increasing demand for infotainment system in vehicles enhance the market growth
The growing market size for infotainment systems in passenger and luxury vehicles is projected to drive the automotive electronics market demand. The growth is attributed to the advancement and technical innovation in the traditional entertainment system that consists of connected technology and assimilation of internet services. Moreover, the increase in consumer spending capability and the demand for luxury products across the world are contributing to the consumption of these automotive electronics. OEMs’ strategies to offer differentiated and advanced products to enhance passenger comfort are adding up to the chances for expansion in infotainment systems in the market in 2018.
Powertrain demand rises in coming years
Powertrain applications of the industry are expected to gain popularity owing to energy related improvements. These systems are experiencing technical developments due to the need for low fuel consuming & low polluting vehicle engines. For instance, in October 2019, Toyota updated its C-HR with 185ps 2-liter hybrid powertrain system to improve steering function. The increasing awareness about using fuel efficient and electric vehicles that save energy, environmental resources, and fuel costs is creating several development opportunities for automotive electronics. Furthermore, government concern & pressure to develop energy-efficient vehicles for reducing environmental pollution is enforcing manufacturers to enhance their powertrain components and hence serve as one of the market opportunities for electrification. As a result, increasing number of electronic components are deployed in powertrain, further driving the industry demand.
Browse key industry insights spread across 490 pages with 809 market data tables and 33 figures & charts from the report, “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” in detail along with the table of contents:
Commercial vehicles in the sprint to adopt electronics systems
Automotive electronics for commercial vehicles are increasingly deploying powertrain and engine management solutions in the market owing to the requirements of high engine capacity and low fuel consumption. Infotainment systems deployed in commercial vehicles provide the benefit of connected car technology and assist drivers in driving and car security. Moreover, the market growth in commercial vehicles due to the rise in demand for transportation also creates several growth opportunities for the automotive electronics market. Adding to this, increase in import and export activities requires an efficient delivery and transportation network, which enhances the production of commercial vehicles and consequently adds an advantage for electronic systems and increase the market share.
Europe accounts for the second largest automotive electronics market share
Europe is projected to maintain a high demand for the automotive electronics owing to the presence of prominent passenger, luxury, and commercial vehicle manufactures such as BMW and Mercedes Benz in markets such as Germany, Spain and UK. These companies produce advanced luxury vehicles with exclusive comfort and safety features. As a result, European countries are undergoing a high demand for advanced comfort and infotainment systems, which incorporate extensive and connected computing technologies.
The Federal Government’s motor vehicle standards include safety standards for hydraulic & electric brake systems, controls & displays, mirror systems, and air brake systems along with requirements for automotive electronics and mechanical components. Moreover, in May 2018, the European Commission adopted a proposal for a regulation that will create a shift in the standard vehicle safety equipment. The proposal comprises new accident avoidance systems including emergency lane keeping & advanced emergency braking systems that will aid in accident reduction. All these factors in European countries accelerate the development and awareness of autonomous driving & autonomous vehicles among consumers.
Increasing complexity of automotive systems including enhanced hardware and software combinations is creating market challenges for efficient integration. Due to the high level of complexity, manufacturers face issues in integrating them into vehicular systems. These systems developed with latest technical advancements face several complexities in design, implementation, and working due to the presence of various miniaturized complex components. These market challenges be overcome can by developing efficient & high-quality electronic and mechanical components that are compatible with complex electronic systems such as ADAS, powertrain, and infotainment systems.
The key players operating in the automotive electronics industry in 2018 are Magna International, Continental AG, Bosch Group, Infineon, Lear Corporation, Delphi Automotive, Hitachi Automotive Systems, Texas Instruments, ZF Friedrichshafen AG, Voxx International Corporation, Faurecia, Hyundai Mobis, and Valeo. Major companies are focused on developing ADAS systems to gain a competitive edge and demand for OEMs. These players are also making heavy investments in R&D activities to develop automotive electronics with enhanced functionality and address growing consumer requirements fueling market growth. Due to high competition among vehicle OEMs, manufacturers are developing new products in collaboration with component providers, OEMs propelling market demand.
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