Report Overview

Global Automotive Electronics Market – Industry Trends & Forecast Report 2027

The global automotive electronics market was worth USD 205.1 billion in 2020 and is further projected to reach USD 340.4 billion by 2027, at a CAGR of 8.2% during 2021-2027 (forecast period). Increasing automotive production across emerging countries, coupled with the growing demand for luxury and hybrid vehicles is driving the market growth. Additionally, the availability of advanced safety systems with features such as automatic emergency braking, and parking assistance at an affordable price is leading to an increase in the integration of these systems which further drive the market growth.

Source: BlueWeave Consulting

Global Automotive Electronics Market Overview:

Automotive electronics are used in vehicles to optimize the performance of different electronic parts that are used for improving vehicle efficiency and running entertainment devices. Automotive electronics are majorly used for applications like electronic fuel injection, advanced driver assistance, airbag, and infotainment. Apart from this, there are various components, which directly or indirectly are dependent on electronic systems in automobiles.

Global Automotive Electronics Forecast and Trend

Growth Drivers 

Increasing Safety Concerns

Road traffic, serious injuries, and death are a few adverse consequences of road transportation. One of the main causes of road crashes and accidents is usually human error. Numerous aspects associated with human drivers, such as speeding, failure to pay attention, and maintaining the proper distance from the vehicle in front, are majorly responsible for road accidents. This necessitates the introduction of sophisticated safety devices into the automotive sector. Thus, the growing preference for safer driving alternatives and smoother road traffic is the key driver for the growth of the global automotive electronics market.

Increasing Adoption of Electric and Hybrid Vehicles

The increasing demand for electric and hybrid vehicles due to their capacities, such as long battery life, energy-efficiency, integrated electronic devices, and zero direct carbon emissions would are driving the market growth. Considering the industry’s huge growth prospects, the market players are making huge investments in the development of high-end hybrid cars.  Moreover, governments of different countries of the world are enacting policies to curb carbon emissions, which in turn is contributing to the increased adoption of electric and hybrid vehicles. Also, surging consumer preference toward advanced parking assistance, a head-up display, and powerful infotainment system technologies are bolstering the growth of the market.

Restraints

High Cost of Electronic Systems to Diminish Business Potential

The high cost of lithium-ion batteries, as well as the significant investments made in R&D for building more sophisticated electronics solutions such as advanced driver assistance systems, are restraining the market growth. Also, high-end software used in hybrid and electronic vehicles which leads to high-end production costs of the automotive vehicles is yet another key factor hindering the automotive electronic market growth. Furthermore, the automobile electronics industry is being impacted by the uncertainties of high servicing and replacement costs.

Impact of COVID-19 in the industry

In terms of market and operational parameters, the pandemic has had a serious impact on industry players. As soon as the World Health Organization (WHO) declared the novel coronavirus (COVID-19) as a pandemic, countries across the globe were compelled to enforce nationwide lockdown to prevent the spread of the virus. This has severely impacted manufacturing besides disrupting the supply chains. Production and operation have slowed down owing to the spreading of coronavirus. Furthermore, COVID-19 has hindered the demand for the automotive and electronics market. For instance, the widespread dissemination of COVID-19 has compelled around 96% of the German automotive industry to place their workforce on short-term jobs during the nationwide lockdown.

Global Automotive Electronics Market: By Vehicle Type

Based on vehicle type, the global automotive electronics market is segmented into passenger cars and commercial vehicles. The passenger car segment accounted for the largest share in 2020 and is estimated to continue to lead throughout the forecast period as well. Growing production and increasing volume sales of passenger vehicles across the globe is generating high demand for automotive electronics systems and components, such as powertrain solutions, infotainment system, and safety systems. Also, OEMs in the global automobile sector are developing vehicles that provide enhanced comfort & safety solutions to address the rapidly changing consumer demands. These factors are playing a key role in driving the overall market growth.

Global Automotive Electronics Market: By Application

Based on application, the automotive electronics market is categorized into ADAS (Adaptive Cruise Control), blind-spot detection, parking assistance, automated emergency braking, infotainment & communication, safety system, and others. The ADAS segment is estimated to expand at the highest CAGR over the forecast period, owing to the several steps taken by the governments across the world to enhance the safety and security of drivers as well as vehicles. For instance, the New Car Assessment Programme (NCAP) in Europe and China has mandated the use of Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) systems owing to which automotive manufactures are adopting these technologies, thereby driving the growth of ADAS the application segment.

Global Automotive Electronics Market: By Sales Channel

Based on the sales channel, the global automotive electronics market is fragmented into OEMs and aftermarkets. The OEM segment held the largest market share in 2020 as most of the electronic components are integrated during the vehicle manufacturing stage by manufacturers such as BMW Motors, General Motors, and Volkswagen AG, thus, calibrating customer’s trust in the electronic components through familiarity and performance. Since the electronic components offered by the OEMs are highly durable, and the OEM parts work exactly as the replaced parts, this segment is estimated to expand at a significant CAGR over the forecast period.

Source: BlueWeave Consulting

Global Automotive Electronics Market: By Component

In terms of components, the automotive electronics market is segmented into the electronics control unit, sensors, current-carrying devices, and others. Based on components, the electronics control unit segment accounted for the largest share in 2020, contributing to more than one-fourth of the total market. The increase in demand for smart electronics in automotive leads to the growth of the segment. However, the sensors segment is expected to register the highest CAGR during the forecast period. The increase in demand for smart electronics in automotive leads to the growth of the segment.

Global Automotive Electronics Market: Regional insights

The global automotive electronics market is segmented into five regions, i.e. North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa, wherein the Asia-Pacific accounts for the highest share in 2020. The Asia-Pacific region is expected to be the largest and fastest-growing market, where China accounted for the largest number of global motor production. Most of the regional demand is fulfilled from Japan and China. The U.S. is also likely to dominate the regional market owing to the presence of key manufacturers, such as Continental AG, ZF Friedrichshafen AG, Autoliv Inc, and Robert Bosch GmbH.

Competitive landscape

Key Players for Automotive Electronics Market are Aisin Seiki Co. Ltd, Altera Corporation, American Axle & Manufacturing Inc, Atmel Corporation, Autoliv Inc, Bosch Group, Broadcom Inc, Continental AG, Delphi Technologies, Denso Corporation, Faurecia, Hitachi Automotive Systems, Hyundai Mobis, Infineon Technologies, Lear Corporation, Magna International Inc, Panasonic Corporation, and other prominent players. The market players compete on the basis of the given product quality and new and cost-effective manufacturing processes to obtain better yield and optimize the process for better production. Moreover, in order to improve their production capability, product portfolio, and provide competitive differentiation, companies are increasingly participating in acquisitions, alliances, and mergers.

Recent Development

·         In January 2021, Denso a leading mobility provider announced a partnership with U.S. LiDAR and perception systems company, Aeva, to develop next-generation sensing and perception systems. The industries will work together to advance Frequency Modulated Continuous Wave (FMCW) LiDAR, a pioneering solution that tests velocity as well as depth and reflectivity, and bring it to the mass vehicle market.

·         In February 2019, Continental AG announced the acquisition of Kathrein Automotive GmbH to increase its expertise in the field of connectivity. The acquisition was aimed at expanding its connectivity product portfolio. Kathrein Automotive GmbH would manufacture intelligent vehicle antennas to ensure future-proof connectivity.

Scope of the Report

Scope of the Report

By Vehicle Type

Ø  Passenger Cars

Ø  Commercial Vehicles

By Applications

Ø  ADAS (Adaptive Cruise Control)

Ø  Blind Spot Detection

Ø  Parking Assistance

Ø  Automated Emergency Braking

Ø  Infotainment & Communication

Ø  Safety systems

Ø  Others

By Sales

Ø  OEM

Ø  Aftermarket

By Component

Ø  Electronic Control Unit

Ø  Sensors

Ø  Current-Carrying Devices

Ø  Others

By Region

Ø  the Asia-Pacific

Ø  North America

Ø  Europe

Ø  the Middle East & Africa

Ø  Latin America

FAQs

1.    What is the current size of the global automotive electronics market?

Answer: The global automotive electronics market has reached USD 205.1 billion in 2020.

2.    What are the major factors driving the growth of the global automotive electronics market?

Answer: The major factors driving the growth of the global automotive electronics market are the increasing adoption of electric and hybrid vehicles and increasing safety concerns.

3.    Who are the key players in the global automotive electronics market?

Answer:  The key players in the global automotive electronics market Aisin Seiki Co. Ltd, Altera Corporation, American Axle & Manufacturing Inc, Atmel Corporation, Autoliv Inc, Bosch Group, Broadcom Inc, Continental AG, Delphi Technologies, Denso Corporation, Faurecia, Hitachi Automotive Systems, Hyundai Mobis, Infineon Technologies, Lear Corporation, Magna International Inc, Panasonic Corporation, and other prominent players

4.    Which application accounted for the largest share in the global automotive electronics market?

Answer: ADAS accounted for the largest share in the global automotive electronics market.

5.    Which region growing at a higher rate in the global automotive electronics market?

Answer: The Asia-Pacific is growing at a higher rate in the global automotive electronics market.