Global Automotive Electronics Market; By Component By Application By Sales Channel (OEM, and Aftermarket) As well as by Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast: 2023-2032
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Report Overview
The global automotive electronics market was valued at USD 234,853 million in 2021 and is projected to grow CAGR (compound annual growth rate) of 7.9%, between 2023 and 2032.
Over the forecast period, the need for cutting-edge safety features like autonomous brakes, bags, and parking assistance systems will increase. The use of lane departure warnings to prevent traffic accidents is also anticipated to rise. Features including accident data recorders, alcohol ignition interlocks, emergency call systems, and emergency call systems to protect passengers in vehicles are anticipated to boost market expansion prospects.
Global Automotive Electronics Market Scope:
Component Analysis
On the basis of ‘Components’, the ‘Current Carrying Device’s segment accounted for 40% of total sales in 2021. Current carrying devices include connectors, electronic switches, and fuses. Due to the high cost and quantity of electronic parts used in automobiles, such as fuses, connections, and wiring harnesses, current-carrying devices have a substantial automotive electronics market share. The expanding need for adequate connection, comfort, and safety features in both passenger automobiles and commercial vehicles can also be credited to this segment’s growth.
The ‘Sensors’ segment is projected to index a CAGR of 4% from 2023 to 2032. Devices that detect physical parameters, assimilation key factors, chemical characteristics, the proximity and position of vehicles, and process variables are all examples of sensors. Positive government measures in several countries for passenger safety, security, and protection are anticipated to stimulate revenue development. As these components can detect temperature, speed, tire pressure, and condition, as well as facilitate action in the event of danger, these gadgets are essential to automobiles.
Application Analysis
In terms of ‘Application’, the ‘Safety Systems’ segment accounted for 30% of total market revenues in 2021. Safety systems are components such as keyless access systems, airbags and tire pressure monitoring systems, and electronic brake distributions. They also include electronic stability control, power steering and suspension controls, and electric power steering. Customers should be more aware of various technological advancements in safety equipment. This will increase the prospects for increased growth of the safety system segment.
The ‘Advanced Driver Assistance System’ segment (ADAS) is expected to grow at a 10.4% CAGR, between 2023 and 2032. The demand for ADAS sensors is exponentially increasing due to their improved functionality and applications. Sensors are an integral component of an ADAS. Sensors are used in ADAS to serve various purposes. Electronic automotive manufacturers will be in high demand due to the anticipated increase in automated driving solutions.
Sales Channel Analysis
The ‘OEM’ segment accounted for a 65% market share in 2021. The OEM segment was the dominant player in the automotive electronics market in 2021, due to its durability and long shelf life. Consumers prefer to buy OEM genuine parts because electronic components are an integral aspect of vehicles. Due to electronic components becoming more complex, there is expected to be a decrease in the demand for aftermarket parts.
The ‘Aftermarket’ segment is slated to index a 6.9% CAGR, between 2023 and 2032. The automotive aftermarket is the market that deals with the manufacturing, remanufacturing, and distribution of original accessories and parts for vehicles. After the OEM has sold a vehicle to the customer, the aftermarket is created.
Key Market Segments:
By Component
- Electronic Control Units
- Sensors
- Current Carrying Devices
- Other Components
By Application
- ADAS
- Infotainment
- Body Electronics
- Safety Systems
- Powertrain Electronics
By Sales Channel
- OEM
- Aftermarket
Market Dynamics:
Automobile manufacturers invest substantial capital in the research and development of high-performance electronics. Electronics are becoming more important for OEMs to ensure safety. By 2021, electronic components in automobiles accounted for around 35% of total vehicle costs. Technological advances have enabled automotive electronic components to account for around half a vehicle’s cost by 2030.
The increasing use of hybrid electric vehicles and Electric Vehicles (EVs) is projected to boost the demand for automotive electronics components. Electronics can be used to replace parts such as relays with electronic components. Electronics will be able to meet many automotive industry requirements while improving reliability and decreasing the weight of wire harnesses. Technological advancements in vehicle safety will also increase demand.
There is a growing demand for car infotainment systems owing to their convenience, and efficiency. In-vehicle storage is needed to store complex features. This is expected to drive market growth trends for infotainment applications.
The global economy has suffered a severe setback due to the COVID-19 pandemic. This adversely affected automotive production. COVID-19 caused disruptions to the supply chain and resulted in numerous production plants being shut down. The COVID-19 pandemic has had a negative effect on the sales of commercial and passenger vehicles. This has also had a negative impact on the demand for automotive parts. The EU market used to be the largest for electronic components in the automotive sector. Recent declines in regional sales of automotive components have resulted in a decrease in their adoption rates. Europe is likely to experience mixed recovery cycles, due to both economic and local stimulus packages. According to the German Association of the Automotive Industry (VDA), 5.1 million passenger car vehicles were registered in Europe during the first half of 2020. This is 39% higher than in 2019.
Regional Analysis
The Asia Pacific accounted for more than 40.6% of market revenues in 2021. With a CAGR rate of 8.5%, it is expected to continue its dominance in the future. The growth of the electronic system component manufacturing sector has contributed significantly to this industry’s expansion in countries such as Thailand, South Korea, and Malaysia. Japan and China account for the majority of the Asia Pacific’s automotive electronics demand. Regional suppliers have a unique market opportunity to invest in the Asia Pacific due to the relatively small number of automotive electronics manufacturers. This would allow them the opportunity to capitalize on local demand, thus making the region attractive to investors.
North America’s markets will register significant economic growth because of its high level of vehicle production and the presence of electronic component manufacturers such as TRW Automotive, Continental Corporation, Robert Bosch GmbH, and Autoliv Inc, to name a few.
Key Regions and Countries Covered in This Report:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Spain
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- MEA
- GCC
- South Africa
- Israel
- Rest of MEA
In 2021, major players in this global market include Continental Corporation, Robert Bosch GmbH, Autoliv Inc., Samsung, Delphi Technologies, Denso Corporation, and ZF Friedrichshafen AG. These companies focus on developing innovative products that are technologically driven to increase their market offerings. To grow their given largest market share, these companies also undertake strategic initiatives like regional expansions, mergers & partnerships, as well as collaborations.
This industry’s key strategy is organic growth. This means that product launches are the best way to develop new products and expand existing product offerings. DENSO Corporation, for example, announced in April 2021 that it would be developing products with advanced driver assistance technology to fit the new Lexus LS. Advanced Drive will include LiDAR to detect the shapes of vehicles and roads around it.
Key Market Players:
- Continental AG
- DENSO Corporation
- Hella GmbH& Co. KGaA
- Infineon Technologies AG
- microchip technology inc.
- Nvidia Corporation
- Visteon corporation
- Robert Bosch GmbH
- intel corporation
- Aptiv plc
- Panasonic Corporation
- Magna international inc.
- Valeo Inc.
- Hitachi ltd.
- Texas instruments incorporated
- ZF Friedrichshafen AG
- Other Key Players
For the Automotive Electronics Market research study, the following years have been considered to estimate the market size:
Attribute Report Details Market Size in 2022
USD 234,853 Billion
Growth Rate
7.9%
Forecast Value in 2032
USD 54.01 Billion
Historical Years
2016-2020
Base Year
2021
Estimated Year
2022
Short Term Projection Year
2028
Projected Year
2023
Long Term Projection Year
2032
Report Coverage
Competitive Landscape, Revenue analysis, Company Share Analysis, Manufacturers Analysis, Volume by Manufacturers, Key Segments, Key company analysis, Market Trends, Distribution Channel, Market Dynamics, COVID-19 Impact Analysis, strategy for existing players to grab maximum market share, and more.
Regional Scope
North America, Europe, Asia-Pacific, South America, Middle East & Africa
Country Scope
United States, Canada and Mexico, Germany, France, UK, Russia and Italy, China, Japan, Korea, India and Southeast Asia, Brazil, Argentina, Colombia etc.Saudi Arabia, UAE, Egypt, Nigeria and South Africa
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- Continental AG
- DENSO Corporation
- Hella GmbH& Co. KGaA
- Infineon Technologies AG
- Microchip Technology Inc. Company Profile
- Nvidia Corporation
- Visteon corporation
- Robert Bosch GmbH
- intel corporation
- Aptiv plc
- Panasonic Corporation Company Profile
- Magna international inc.
- Valeo Inc.
- Hitachi Ltd. Company Profile
- Texas instruments incorporated
- ZF Friedrichshafen AG
- Other Key Players
- Nestlé S.A Company Profile
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