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    Automotive Electronics Market Analysis

    Automotive Electronics Market Analysis
    Report code - SRTI192 Delivery - 2 Weeks
    Automotive Electronics Market Size, Share, Trends, Forecast, & Growth Analysis: 2 See more...

    Market Insights

    The automotive electronics market was estimated at USD 234.57 billion in 2022 and is likely to grow at a CAGR of 7.99% during 2023-2028 to reach USD 372.2 billion by 2028.

    Automotive electronics are basically electronic systems integrated and mounted in various vehicle applications, such as safety systems, body electronics, powertrain, and infotainment, including engine management, ignition, radio, and others.

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    In the past, the EU used to dominate the automotive electronic components market. However, in recent times, the adoption of these components has declined due to a decrease in automobile sales within the region. Due to the imposition of municipal restrictions and the implementation of economic stimulus packages, Europe is expected to experience multiple recovery cycles. As per the German Association of the Automotive Industry (VDA), the first half of 2020 witnessed a significant decline in the registration of passenger cars across Europe. The figures indicate a 39% decrease compared to the previous year. In addition, sales of passenger vehicles in the United States experienced a notable decline of approximately 26% in 2020 when compared to the preceding year.

    Automotive Electronics Market Report Overview

    Market Size in 2022

    USD 234.57 Billion

    Market Size in 2028

    USD 372.2 Billion

    Market Growth (2023-2028)

    7.99% CAGR

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2028

    Market Dynamics

    Increasing integration & adoption of automotive electronics in modern vehicles for delivering improvised safety & comfort to consumers, growing sales of electric vehicles in China, the stringent regulatory framework in North America and Europe, and increasing vehicle production activities are some of the major factors driving the growth of the automotive electronics market during the forecast period.

    The market growth is being fueled by the increasing awareness and emphasis on safety, as well as the implementation of strict automotive regulations.

    The automotive sector is experiencing a notable increase in the importance placed on vehicle safety. This trend is primarily driven by rigorous regulations and strong consumer demand for advanced safety features. The integration of electronics in the automotive industry plays a crucial role in the implementation of essential safety technologies. These include advanced braking systems, airbags, Electronic Stability Control (ESC), collision avoidance systems, and Advanced Driver Assistance Systems (ADAS).

    During the projected time frame, the market growth is fueled by the adoption of these electronic systems, which enhance vehicle safety, effectively mitigate accidents, and ensure compliance with regulatory standards. In May 2023, Bosch entered into a partnership with Plus, a leading provider of autonomous vehicle solutions. The purpose of this collaboration is to offer assisted driving solutions specifically designed for commercial vehicles.

    Key Players

    Some of the key players in the automotive electronics market are-

    Segment Analysis

    Application Trends

    The market is segmented as ADAS, body electronics, infotainment & communication, powertrain, and safety systems. ADAS is expected to be the fastest-growing segment of the market owing to the advantageous features regarding safety and driving during the forecast period. This can be attributed to the implementation of strict safety regulations by governments and regulatory bodies worldwide, with the aim of reducing accidents and enhancing road safety. As safety awareness continues to grow, there is a heightened demand for Advanced Driver Assistance Systems (ADAS) technologies in vehicles.

    A recent example of this is Volvo's recent introduction of advanced ADAS and safety features for its EX30 SUV, which was unveiled in May 2023. ADAS includes various systems such as adaptive cruise control, blind spot detection, night vision, and automated braking systems which provide driving assistance in driving at night and inclement weather conditions, fueling the segment’s growth during the forecast period.

    Vehicle Trends

    The market is segmented into passenger cars and commercial vehicles. The passenger car is estimated to be the dominant segment of the market on account of the increasing consumption and production of passenger car vehicles and the growing integration of electronic systems during the forecast period. Rapidly changing consumer demands resulting in an increase in the development of high-end passenger cars are further expected to have a positive impact on the market during the forecast period.

    Regional Analysis

    Asia-Pacific is estimated to be the leading region in the market owing to the flourishing automotive sector and China, Japan, and South Korea being the major countries providing lucrative growth opportunities in the vehicle & component manufacturing sector in the region during the forecast period. The rapid expansion of the automotive sector in these nations, propelled by increasing disposable incomes, urbanization, and infrastructure advancements, is driving the need for automotive electronics in the area.

    In February 2023, TATA Motors introduced its SUV called the TATA Harrier, which boasts 10 Advanced Driver Assistance System (ADAS) features. The presence of various suppliers and China being the growth engine of the region is further expected to fuel the regional market growth over the forecast period. Europe and North America are also expected to offer substantial growth opportunities during the forecast period.

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    Target Audience

    Here is the list of the group of customers that the automotive electronics market hopes to have the greatest opportunity to convert-

    • Distributors
    • Suppliers
    • Manufacturers
    • Logistics organizations
    • Government bodies

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What deliverables will you get in this report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the Automotive Electronics Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

     

    The automotive electronics market is segmented into the following categories. 

    By Application Type:

    • ADAS [Adaptive Cruise Control, Blind Spot Detection, Parking Assistance, Automated Emergency Braking, Night Vision, and Lane Departure Warning]
    • Body Electronics
    • Infotainment & Communication [Audio, Display, Navigation, Head-up Display, and Communication]
    • Powertrain [Engine Controllers, Transmission Drivetrain, Exhaust, and xEV]
    • Safety Systems

    By Vehicle Type:

    • Passenger Cars
    • Commercial Vehicles

    By Region:

    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Customization Options

    Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

    Recent News & Developments

    In July 2023, HELLA and Porsche joined forces in collaboration with other partners to introduce an innovative high-resolution headlamp system known as the 'SSL | HD.' This cutting-edge system incorporates matrix LED technology and boasts an impressive 32,000 individually adjustable pixels per headlamp. Notably, it has been introduced as an optional feature for the all-new Porsche Cayenne, marking the first time this advanced technology has been made available in this vehicle model.

    In July 2023, Continental made a significant announcement regarding its plans to equip the entire Conti Urban bus tire line with the latest sensor technology. This move towards integrating sensors into their products is part of Continental's ongoing commitment to digitalizing fleet management. Starting from August 2023, customers will have access to the new range of smart tires, including the Conti UrbanScandinavia HD3, Conti Urban HA3, and Conti UrbanScandinavia HA3+. This strategic development aligns with Continental's forward-looking approach to enhance fleet operations through advanced digital solutions.

    In May 2023, Valeo unveiled a significant strategic partnership with DiDi Autonomous Driving. Under this collaboration, Valeo has made a strategic investment in DiDi Autonomous Driving, and the two companies are working together to pioneer cutting-edge safety solutions for Level 4 autonomous vehicles, specifically robotaxis.

    In May 2023, HELLA revealed its receipt of numerous customer orders for their cutting-edge steering sensors. These advanced sensors are a pivotal component in driving the development of steer-by-wire systems. HELLA is slated to commence production of this sensor series for its customers in 2025, with manufacturing operations set to take place at HELLA's electronic facilities located in Xiamen, China, and Recklinghausen, Germany. The developmental aspects of this project will be overseen at the company's headquarters in Lippstadt, Germany.

    In May 2023, According to IAR Systems, the RISC-V architecture it offers has significant potential for development in Taiwan, especially within the automotive electronics industry. In addition, Meta has successfully developed an in-house Artificial Intelligence (AI) chip based on this architecture.

    In March 2023, xEVs announced its strategic initiative to offer fresh avenues for the implementation of vehicle sensors. The company's objective is to address the growing demand for efficient management of electrical current and temperature regulation in various circuits, such as charging and drivetrain, as well as hybrid and battery-powered vehicle configurations.

    In March 2023, Lumotive, a company based in the United States, successfully developed a silicon-based semiconductor that utilizes sophisticated software to control the direction of a beam. This technology enables accurate detection of a vehicle's surroundings. The chips have been specifically designed to meet the safety requirements of various automotive industries.

    In January 2023, HARMAN, a subsidiary of Samsung Electronics and an automotive technology company, recently unveiled its newest range of vehicle electronics products. At the CES 2023 event, the company presented its latest line of products. HARMAN exhibited a range of offerings including Ready Care, Ready Display, Ready on Demand, Ready Upgrade, Ready Vision, and Sound & Vibration Sensor External Microphone.

    In April 2023, HARMAN has recently established an Automotive Engineering Centre in Chennai, India with the objective of securing a prominent position as a supplier of vehicle electronics in the country.

    Frequently Asked Questions (FAQs)

    Automotive electronics are basically electronic systems integrated and mounted in various vehicle applications, such as safety systems, body electronics, powertrain, and infotainment, including engine management, ignition, radio, and others.

    The automotive electronics market was estimated at USD 234.57 billion in 2022.

    The automotive electronics market is likely to reach USD 372.2 billion by 2028.

    The automotive electronics market is likely to grow at a significant CAGR of 7.99%.

    Asia-Pacific is estimated to be the largest market during the forecast period.

    Aisin Seiki Co., Ltd., Altera Corporation, American Axle & Manufacturing, Inc., Atmel Corporation, Autoliv, Inc., Broadcom, Inc., Continental AG, Delphi Technologies, Denso Corporation, Robert Bosch GmbH.

    Increasing integration & adoption of automotive electronics in modern vehicles for delivering improvised safety & comfort to consumers. Growing sales of electric vehicles in China, and the stringent regulatory framework in North America and Europe. Increasing vehicle production activities are some of the major factors driving the growth of the automotive electronics market during the forecast period.

    ADAS is expected to be the leading application type in the automotive electronics market in the next five years.

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