by The global automotive electronics market size reached USD 310.10 billion in 2023 and is predicted to surpass around USD 609.61 billion by 2032, at a CAGR of 7.80% from 2023 to 2032.
Key Points
- By component, the current carrying devices segment has generated a market share of 41% in 2022.
- The sensors segment is expected to grow at a CAGR of 9.7% from 2023 to 2032.
- By application, the safety systems segment has captured market share of 29% in 2022.
- The ADAS segment is registering growth at a CAGR of 11.1% from 2023 to 2032
- By sales channel, the OEM segment has accounted market share of around 69% in 2022.
- The aftermarket segment is expected to grow at a CAGR of 7.4% from 2023 to 2032.
- Asia Pacific automotive electronics market has held market share of around 41.2% in 2022.
The automotive electronics market encompasses a wide range of electronic components and systems used in vehicles, including advanced driver assistance systems (ADAS), infotainment systems, powertrain control modules, and vehicle connectivity solutions. Over the past decade, the automotive industry has witnessed a significant shift towards incorporating more electronic features into vehicles to enhance safety, efficiency, comfort, and overall driving experience.
Growth Factors
Several key factors are driving the growth of the automotive electronics market. First, the increasing demand for safety features such as collision avoidance systems, adaptive cruise control, and lane departure warnings has spurred the adoption of advanced electronic systems. Second, the trend towards electric and hybrid vehicles requires sophisticated battery management systems and electric drivetrain controls, further boosting the demand for automotive electronics. Additionally, the rise of connected cars and the Internet of Things (IoT) in automotive applications is driving the need for robust and secure electronic components.
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Regional Insights
The automotive electronics market exhibits varying dynamics across different regions. In developed markets like North America and Europe, stringent safety regulations and consumer demand for high-tech vehicles are propelling market growth. Asia-Pacific, particularly countries like China, Japan, and South Korea, is a major hub for automotive manufacturing and electronics production, driving significant growth in this sector.
Scope of the Automotive Electronics Market
| Report Highlights | Details |
| Market Size | US$ 609.61 Billion by 2032 |
| Growth Rate | CAGR of 7.80% from 2023 to 2032 |
| Base Year | 2022 |
| Historic Data | 2020 to 2021 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Type, Sales Channel, Application |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Drivers
The primary drivers fueling the automotive electronics market include technological advancements in sensors, microcontrollers, and communication networks, enabling more sophisticated vehicle functionalities. Additionally, regulatory mandates for improved vehicle safety and emissions standards are pushing automakers to integrate more electronics into their vehicles. The shift towards electric and autonomous vehicles is also a key driver, necessitating complex electronic systems to enable these technologies.
Opportunities
The automotive electronics market presents several opportunities for growth. As automakers focus on developing autonomous and electric vehicles, there is a growing need for specialized electronic components and software solutions. Moreover, the expansion of the electric vehicle charging infrastructure globally opens up opportunities for companies specializing in power electronics and charging systems. The emergence of new technologies such as artificial intelligence and machine learning in automotive applications also creates avenues for innovation and market expansion.
Challenges
Despite the promising growth prospects, the automotive electronics market faces certain challenges. One major challenge is ensuring the cybersecurity and data privacy of connected vehicles, given the increasing complexity and connectivity of electronic systems. Another challenge is the rapid pace of technological evolution, which requires continuous investment in research and development to stay competitive. Supply chain disruptions, particularly in semiconductor manufacturing, have also impacted the automotive electronics sector, leading to production delays and increased costs.
Read Also: Intelligent Transportation System Market Size, Report By 2032
Recent Developments
- In January 2021, Renesas Electronics Corporation announced its partnership with Microsoft to fast-track the development of connected automobiles. The R-Car Starter Kit of Renesas, created on R-Car Automotive SoC, is now accessible as a development environment for the MCVP (Microsoft Connected Vehicle Platform).
Major Market Segments Covered:
By Type
- Sensors
- Electronic Control Unit
- Current Carrying Devices
By Sales Channel
- OEM
- Aftermarket
By Application
- Body Electronics
- ADAS
- Infotainment
- Safety Systems
- Powertrain Electronics
By Geography
- North America
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- U.S.
- Canada
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- Europe
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- Germany
- France
- United Kingdom
- Rest of Europe
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- Asia Pacific
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- China
- Japan
- India
- Southeast Asia
- Rest of Asia Pacific
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- Latin America
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- Brazil
- Rest of Latin America
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- Middle East & Africa (MEA)
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- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
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