The global automotive electronic devices market is expected to witness significant growth over the forecast period. Today, high-tech electronic systems comprise all the devices to do everything right from monitoring fuel and diagnosing problems. The modern automobiles have over 80 devices installed out of which a majority are used for monitoring the safety of the vehicle. Adaptive cruise control is one such example of an electronic device used for safety purpose as it helps in controlling the vehicle speed in case of any obstacle nearby. Another device is a lane assistant system which signals the driver of lane cutting.
Growing automobile sector coupled with technological development in terms of enhanced driving experience is expected to drive the global automotive devices market over the forecast period. Cars in today’s era are rigged with remarkable advance gadgets, be it entertainment or GPS system, all the things are going digital and hence driving the global market for automotive devices. Electronic components or devices contribute towards nearly 30.0% of the production cost.
The global automotive devices market is driven by various factors such as stringent regulations, product development due to investment in R&D and globally focusing Original Equipment Manufacturers (OEM. The demand for automated cars in Latin America and Asia Pacific is expected to be the key contributor towards the growth in global automotive device market over the forecast period. Increasing urbanization, development of infrastructure and rise in disposable income are affecting the demand shift towards vehicles with improved safety and advanced features.
An automated car control system gives the driver control over multiple devices while driving without diverting attention thus ensuring safety. For instance, in BMW cars, a feature known as iDrive which includes a knob and screen which controls much of the audio system, navigation along with the HVAC systems is installed which does not require much attention of the driver to operate it apart from focusing on roads. Rising number of automobiles owned per family worldwide results in traffic congestion issues along with crowded freeways and highways and is expected to augment demand for electronic devices in the next seven years.
Key application segments include infotainment, ADAS, body electronics and safety. In order to restrict the number of casualties resulting from road accidents, regulatory boards have taken several steps for incorporating safety devices in vehicles on a global level. Some of the essential products to ensure safety are airbags, padded knee bolster, electrochromatic auto dimming mirrors, passenger sensing system and backup sensing system. Suppliers such as Continental AG along with OEMs are concentrated on providing low cost ADAS for the medium sized and compact car segments.
The global automotive electronic devices market can be segmented into products and technologies. Based on product type, the market is segmented into control devices, entertainment systems, GPS systems and video devices. Among the product types, entertainment systems are mostly used such as satellite radio, DVD player, audio devices and dashboard players. A modern trend showing up in the market is integrating different systems into one so that scope for new technology or system, design variations and cost optimization will further increase. This is anticipated to drive the global automotive electronic devices market growth.
Geographically, North America holds the largest market share for automotive electronic devices but is expected to show moderate growth during the forecast period. An identical trend is anticipated in European countries, where euro debt crisis had a momentous descending effect on the market growth. The automobile sector in the rapidly growing markets of Asia Pacific and Latin America has been more buoyant and is showing gradual growth in upcoming years.
Asia Pacific is anticipated to contribute majorly towards the global market for automotive electronic devices over the forecast period. The government of China has encouraged C-NCAP’s safety appraisal reassuring buyers to see a five-star rating as a benchmark to vehicle’s quality. The U.S. Department of Transportation has assigned safety equipment such as rear cameras in all modern vehicles, thus increasing the cost of the car. The Department of Transportation also controls Federal Motor Vehicle Safety Standards and regulations (FMVSS), which recommends proximity sensors and cruise control for vehicle monitoring hence reducing gas consumption and environmental pollution. Increasing demand for interactive systems such as embedded vision systems competent of real-time image tracking achieved prominence. There has been a growth in acceptance of green technologies owing to rigid government regulations leading to decline in modular platforms.
The global automotive electronic market is dominated by players such as Delphi Automotive Systems, Yamaha, Philips, Sanyo, Sony, Denon and Antex.
Delphi Automotive PLC is a key player in the vehicle components market which provides safety technology, powertrain and electrical/electronic solutions to major automobile manufacturers including General Motors, Volkswagen Group, Ford Motor Company, Fiat Chrysler, Daimler and PSA Peugeot Citroën. The company has over 120 manufacturing sites located across 44 countries around the globe. Delphi offers automobile devices under electronics and safety business segment which includes controls, infotainment and driver interface portfolio, passive and active safety electronics, advanced driver assistance systems, electronic and hybrid electric vehicle power electronics.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.