Automotive Electronics Market Size, Share & Trends Analysis Report By Component (Electronic Control Unit, Sensors, Current Carrying Devices), By Application, By Sales Channel, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automotive electronics market size was valued at USD 244,954.5 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2030. The increasing integration and implementation of advanced safety systems such as automatic airbags, parking assistance systems,emergency braking, and lane departure warning to decrease road accidents are expected to favor demand over the forecast period. Moreover, features such as, alcohol ignition interlocks,emergency call systems, and accident data recorder systems are rapidly adopted to safeguard in-vehicle passengers and are expected to drive the industry’s growth over the forecast period.

The COVID-19 pandemic has had a catastrophic impact on the global economy and the production of automobiles. The COVID-19 aftermath has caused supply chain problems and the shutdown of various production sites. Sales of both passenger and commercial vehicles have suffered as a result of the pandemic, which has also affected consumer demand in the automobile industry.

In the past, the EU market dominated the sales of automotive electronic components; however, more recently, the adoption rate has decreased as a result of a reduction in automobile sales in the area. Because of municipal limits and economic stimulus packages, Europe is likely to experience a broad range of recovery cycles. According to the German Association of the Automotive Industry (VDA), in Europe, 5.1 million passenger cars were registered in the first half of 2020, 39% less than in 2019. Moreover, sales of passenger vehicles in the U.S. declined by around 26% in 2020 compared to the previous year.

The automotive industry is investing a significant amount of resources in research and development to create high-performance electronics and energy storage technology at a competitive price. Moreover, OEMs are relying more on electronics to achieve a high degree of safety. However, the automotive industry is transitioning away from hardware-driven vehicles and towards software-driven vehicles.

The average number of electronic and software components per vehicle is quickly rising, which has an impact on the market's expansion. According to automotive electronic market demand, factors such as the incorporation of IoT and AI into autos, the availability of automated vehicles, the desire for in-vehicle safety features, and a rise in the demand for entertainment features are fueling the demand.

The growing adoption of Hybrid Electric Vehicles (HEV) and Electric Vehicles (EV) is also expected to drive the demand for automotive electronics components. Moreover, the substitution of mechanical components with electronic components, such as the use of electronic switches instead of a relay, is another means through which electronics can address the numerous needs of the automotive industry, simultaneously increasing reliability and reducing the weight of wire harnesses. Technological advancements related to in-vehicle safety and government regulations to minimize road accidents are also expected to boost the demand over the forecast period.

The demand for in-vehicle data storage to support advanced in-vehicle features is being driven by the expanding demand for in-car infotainment systems due to their increased comfort, efficiency, and convenience. However, the low adoption of automotive electronics in newly industrialized nations and a rise in overall end-product prices as a result of the integration of vehicle electronics coupled with high maintenance and replacement expenses restrain the automotive electronics market’s growth.

Component Insights

The current carrying devices segment accounted for the largest revenue share of around 40% in 2022. Current carrying devices comprise products such as electronic switches, fuses, connectors, and wiring harnesses. The significant market share of current-carrying devices in the component segment is due to the high cost and numerous electronic components used in vehicles, including electronic switches, fuses, connectors, and wiring harnesses. The increasing desire for connection, convenience, and safety features in both passenger automobiles and commercial vehicles can also be credited with the segment's growth.

The sensors segment is projected to register a CAGR of 9.9% from 2023 to 2030. The sensors segment includes sensors that are used to detect physical factors, a vehicle’s proximity and positioning, chemical qualities, and process variables. Revenue growth is anticipated to be fueled by supportive governmental initiatives for passenger safety and security in various countries. Since they monitor variables like temperature, speed, and tyre pressure & condition while taking preventative action in the event of danger, these devices have become an indispensable component of autos.

Application Insights

The safety systems segment accounted for the largest revenue share of around 28% in 2022. Safety systems comprise components such as airbags, keyless entry systems, electric power steering, electronic brake distribution, tire pressure monitoring systems, electronic stability control, and suspension control, among others. Growing consumer awareness of technology advancements affecting safety equipment in automobiles is anticipated to be a significant development factor for the safety systems market.

The Advanced Driver Assistance System (ADAS) segment is estimated to register a CAGR exceeding 11.2% from 2023 to 2030. The demand for ADAS sensors is increasing exponentially owing to the increased application and functionalities that these sensors offer. Sensors form an essential part of ADAS. From primary stereo cameras to the latest LiDAR, sensors are utilized individually or in combination to perform complicated functions. Thus, the increasing demand for automated driving is expected to fuel the demand for automotive electronic components over the forecasted period.

Sales Channel Insights

The OEM segment accounted for the largest share of around 68% of the global automotive electronics market in 2022. The OEM segment dominated the market in 2022, owing to the increased durability and shelf-life of electronic components. Since electronic components form an integral part of vehicles, consumers prefer buying them through OEMs to obtain genuine parts. Furthermore, with the increase in the design complexity of these electronic components, aftermarket electronic components are expected to account for a lower revenue share over the forecast period.

The aftermarket segment is estimated to register a CAGR exceeding 7.5% from 2023 to 2030. The word "aftermarket" refers to the secondary market within the automotive sector that is involved in the production, remanufacturing, distribution, retailing, and installation of all vehicle electrical parts and accessories following the sale of the vehicle by the OEM to the consumer. Over the projected period, it is anticipated that the share of aftermarket components will decrease due to the complexity of these electronic components rising.

Regional Insights

Asia Pacific automotive electronics industry accounted for the largest revenue share of 41.3% in 2022 and is anticipated to continue its dominance over the forecast period with a CAGR exceeding 9.0%. Countries such as Taiwan, South Korea, Malaysia, and Thailand have significantly contributed to the market growth owing to the flourishing electronic component manufacturing activities.

Most automotive electronics demand in Asia Pacific is fulfilled by China and Japan. However, the limited number of automotive electronics manufacturers poses an excellent investment opportunity for regional suppliers to capitalize on the local demand, thereby making the rest of the Asia Pacific region an attractive place for investors.

The North America automotive electronics industry is expected to experience significant growth over the forecast period, owing to the high level of motor vehicle production and the presence of automotive electronic component manufacturers such as TRW Automotive, Continental Corporation, Robert Bosch GmbH, and Autoliv, Inc.

Key Companies & Market Share Insights

The key players that dominated the global automotive electronics industry in 2022 include Continental Corporation; Robert Bosch GmbH; Autoliv, Inc.; Samsung; Delphi Technologies; Denso Corporation; and ZF Friedrichshafen AG. Most of these companies are focused on providing technologically driven and advanced products to enhance their product offerings. The companies are also undertaking strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations to grow in the market.

Organic growth remains the key strategy for the overall industry, focusing on product launches to develop new & innovative products and expand product offerings. For instance, in December 2022, The Chinese government and the international technology company ZF Group signed an investment agreement for the construction of a highly automated and intelligent factory in Guangzhou to manufacture new electronics and advanced driver assistance products. This will increase China's production capacity in the fields of autonomous driving, cameras, sensors, and brake electronics. Some prominent players in the global automotive electronics market include:

• Continental AG

• DENSO Corporation

• Hella GmbH & Co. Kgaa

• Infineon Technologies AG

• Robert Bosch GmbH

• Valeo Inc.

• ZF Friedrichshafen AG

• Hitachi Automotive Systems, Ltd.

• Visteon Corporation

• Xilinx, Inc.

Automotive Electronics Market Report Scope

Global Automotive Electronics Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automotive electronics market report by component, application, sales channel, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Electronic Control Unit

  • Sensors

  • Current Carrying Devices

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • ADAS

  • Infotainment

  • Body Electronics

  • Safety Systems

  • Powertrain Electronics

• Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • OEM

  • Aftermarket

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa