The global automotive electronics industry is projected to witness a significant growth owing to technological advancements and increasing concern about safety and comfort. Emergency call systems, alcohol ignition interlocks, and accident data recorder systems are an example of technologies, which are expected to boost the vehicle growth. Moreover, an increase in standard of living and increase in disposable incomes is driving the demand for these systems.
Increasing customer demand for multimedia enabled vehicles, safer and fuel-efficient vehicles enabling manufacturers to make their cars smart than ever before. Many safety features such as balance vehicle distribution, body electronics, car protection during collisions, air bag deployment and engine cut off systems are expected to be standard in Indian cars over the forecast period. Strict government protocols and environment issues are forcing automotive OEMs to accord greater importance to fuel efficiency.
Innovation in this sector has been growing, and it plays a vital role when it comes to road safety. Several drivers like safety, ecology and economic factors are critical for the automotive sector. Changing consumer lifestyle, rising GDP, availability of fuel & credit price and increasing employment levels are the primary economic factors that have impacted the auto industry. Also, ecological factors and concerns affect the auto sector, which is often mandated by government, including CO2 emission levels and fuel economy. Advances in the technology have enabled the manufacturers to increase the value in their product by providing improved reliability and more features.
New semiconductor technologies are in huge demand as they are capable of delivering more efficient power management and conversion systems. They are important factors for improved emissions performance and fuel economy.
Technological developments in the automobile industry have led to an active involvement of computers in the operations of automotive engines. Manufacturers are harnessing the power of digital control equipment leading to high-performance delivery of automobiles. The ongoing research to discover the innovative use of automotive chip is expected to be a key factor for industry growth. Consumer chip manufacturers such as Renesas Electronics Corporation and NXP are actively focusing on automobile brands at collaborative chip manufacturing initiatives.
It follows a declining demand for chips from the computer industry and manufacturers are aiming at exploiting the growing chip market. However, with only a few key players directing the market dynamics, the smaller companies may face challenges for growth. While the infotainment sector exhibits a healthy growth, the security, and performance related chips are yet to capture the industry.
Navigation system segment is expected to witness huge demand. Navigation systems in automobiles are integrated with video and audio systems to deliver information to the users. Rapid development in user interface and responsiveness of these systems is anticipated to fuel growth. Navigation service providers collaborate with wireless network providers for data access, which works for the market. The advent of self-driven cars is estimated to act as a key factor that drives demand of this industry over the forecast period.
Navigation systems can be classified into, line-fit and brought in. While leading car manufacturers have already integrated navigation systems in their vehicles, the market exhibits potential for brought-in navigations systems. The surge in automobile sales in developing countries is expected to create a healthy demand for brought-in systems. The navigation market comprises of shipping hardware providers, software vendors, navigation maps and claimants such as traffic, parking and weather forecast information providers.
Key application segment in this industry includes powertrain, ADAS, body electronics and infotainment. Due to rising road accidents, a regulatory board of various countries has taken steps for incorporating safety devices in vehicles like padded knee bolster, heads-up display, energy-absorbing steering system, on/off switches for air bags, electro chromatic mirror, backup sensing systems, passenger sensing system and head restraints.
Asia Pacific region is anticipated to witness high growth owing to rising disposable income and presence of manufacturing facilities in economies such as China, India, and Japan. The U.S. Department of Transportation made it mandatory to use safety equipment such as the camera in all the upcoming vehicles. China government has started C-NCAP safety assessments and is encouraging buyers to purchase the car with a five-star rating.
Many suppliers such as Continental AG are focusing on providing low-cost ADAS for small and medium segment cars. These companies have introduced affordable ADAS systems in the market such as lane departure warning systems, traffic sign recognition, and driver monitoring systems.
OEMs such as Audi and Mercedes are focusing on consumer data, which is a package of customer services covering vehicle purchasing, servicing, and financing along with short-term rentals available on a multi-digital platform.
Key industry participants include Robert Bosch Co. ltd., TRW Inc, Denso Corporation, Johnson Controls, Dongfeng Peugeot Citroen Co. ltd., Mercedes-Benz Connect, Magna International Inc, Tokai Rika Co. Ltd., Valeo, Toyota Motor Corporation, Weifu High-Technology Group Co. Ltd., and Zhejiang Wanli yang Transmission Co., Ltd.
Access news release of research report on global automotive electronics market: http://www.grandviewresearch.com/press-release/global-automotive-electronics-industry
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