Automotive Electronics Market Projected to Surge to $508 Billion by 2028, BCC Research study says

Expanding at an 8.5% CAGR, the Global Market for Automotive Electronics in IC Engines and EVs is Set for Significant Growth from $337.9 Billion in 2023

BOSTON, Jan. 19, 2024 /PRNewswire/ -- The Automotive Electronics market is undergoing a transformative journey as it adapts to the coexistence of Internal Combustion Engine (IC) vehicles and Electric Vehicles (EVs) on a global scale. This dynamic landscape is shaped by technological advancements, regulatory shifts, and the growing demand for sustainable mobility solutions. From traditional IC engine control units to the sophisticated electronic architectures of EVs, the industry is witnessing a paradigm shift. This introduction delves into the intricacies of the Global Markets for Automotive Electronics, exploring the evolving trends, competitive dynamics, and technological innovations that define this crucial intersection between traditional and electric vehicle technologies.

"According to the latest research study, the demand for Automotive Electronics: Global Markets for IC Engine and EVs grow from $337.9 billion in 2023 to $508.0 billion in 2028, at a compound annual growth rate (CAGR) of 8.5% during the forecast period 2023-2028."

This comprehensive report meticulously examines the automotive electronics market, employing a thorough analysis based on application, vehicle type, propulsion type, sales channels, and region. In addition to dissecting market dynamics, encompassing drivers, restraints, trends, and opportunities at a global scale, the report offers a detailed exploration of M&A and funding activities, an insightful analysis of emerging technologies, and a scrutiny of ESG (Environmental, Social, Governance) developments. The study adopts a reader-friendly format, utilizing tables and figures to present historical, current, and future market scenarios. Leading companies are spotlighted, featuring details on product types, business footprint, revenue, employee strength, and ESG ratings. Small-scale and emerging players are also identified with pertinent product information. A patent analysis of the automotive electronics market is included, providing additional depth to the assessment. Moreover, the report delves into the impact of significant events like the COVID-19 pandemic and the Russia-Ukraine war on both global and regional markets. For temporal context, the report considers 2022 as the historic/base year, anticipates trends for 2023, and forecasts market values through 2028, all expressed in billions of U.S. dollars.

Electronic components in Internal Combustion (IC) engine vehicles presently contribute to roughly 30% of the overall vehicle cost, with a higher impact on premium vehicles. However, as the automotive landscape evolves, the proportion of electronic content is anticipated to escalate to approximately 50% of the total cost in new vehicles. This surge is attributed to the increasing integration of connected and autonomous vehicle technologies. In contrast, for electric vehicles, this electronic cost could range between 50% to 70% of the total vehicle cost. The automotive industry stands as one of the foremost consumers of electronic products globally, exemplified by premium cars boasting over 100 Electronic Control Units (ECUs) managing diverse functions, from crucial power and engine controls to comfort-oriented features such as HVAC systems, ventilated seats, and power windows, as well as access and security mechanisms like keyless entry and door locks.

A pivotal application of automotive electronics is seen in Advanced Driver-Assistance Systems (ADAS), offering the potential to reduce nearly 60% of car accidents on highways. In 2021, about one in three new vehicles sold in major automotive markets, including the U.S., Europe, Japan, and China, featured ADAS functionalities. A significant projection indicates that by the year 2030, approximately half of all on-road vehicles will be equipped with ADAS features, underscoring the growing importance and widespread adoption of advanced safety technologies in the automotive sector.

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Driving forces behind the automotive electronics: global markets for IC engine and EVs market's insights growth comprises:

1. Government Steps toward the Safety of Vehicles are Boosting the Demand for Automotive Electronics- Increasing government initiatives to enhance vehicle safety are driving a surge in demand for automotive electronics. As authorities worldwide prioritize safety regulations, the automotive industry is witnessing a growing need for advanced electronic systems, particularly in areas such as Advanced Driver-Assistance Systems (ADAS) and other safety-centric technologies. This proactive stance by governments globally is a key catalyst propelling the adoption of automotive electronics to ensure enhanced safety standards across vehicles.

2. Advancements in Vehicle Technology are Boosting the Demand for Electronic Products- Rapid advancements in vehicle technology are fueling heightened demand for electronic products. As automotive innovations continue to evolve, there is an increasing reliance on electronic components to power features such as connectivity, autonomy, and advanced driver assistance systems (ADAS). This surge in technological sophistication is a major driver, propelling the automotive industry to seek and integrate cutting-edge electronic solutions, thereby amplifying the demand for electronic products in vehicles.

3. Transforming Automotive Business Model from Personal Mobility to Mobility-as-a-Service- The automotive industry is undergoing a transformative shift from traditional personal mobility to the innovative concept of Mobility-as-a-Service (MaaS). This evolution represents a fundamental change in the business model, emphasizing shared and on-demand mobility solutions over individual vehicle ownership. The move towards MaaS reflects a growing preference for flexible, efficient, and interconnected transportation services, marking a significant paradigm shift in the way people access and use transportation resources.

4. Changing Consumer Interests and Rising Awareness of Battery-Powered Vehicles- Consumer interests are evolving, driven by a heightened awareness of environmental concerns, leading to a surge in demand for battery-powered vehicles. This shift reflects a growing preference for sustainable and eco-friendly transportation options, indicating a significant change in consumer attitudes toward cleaner and greener mobility solutions.

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Report Synopsis        

The Rising Demand for Automotive Electronics: Global Markets for IC Engine and EVs:

The global automotive industry is experiencing an unprecedented surge in demand for automotive electronics, propelling markets for both Internal Combustion Engine (IC) vehicles and Electric Vehicles (EVs). With electronic components currently accounting for approximately 30% of new vehicle costs, this share is projected to rise to 50%, driven by the pervasive integration of connected and autonomous vehicle technologies. Notably, the electric vehicle segment may witness electronic costs ranging from 50% to 70% of the total vehicle cost. The automotive sector, a top consumer of electronic products worldwide, is undergoing a paradigm shift, illustrated by the prevalence of over 100 Electronic Control Units (ECUs) in premium cars, managing functions ranging from critical power and engine controls to comfort and security features. Advanced Driver-Assistance Systems (ADAS) emerge as a pivotal application, poised to reduce highway accidents significantly, with projections indicating that by 2030, around half of all on-road vehicles will incorporate ADAS features. This evolving landscape underscores the critical role of automotive electronics in shaping the future of vehicular mobility.

Trends and Innovations:

The global markets for automotive electronics in both Internal Combustion Engine (IC) vehicles and Electric Vehicles (EVs) are witnessing dynamic trends and innovations. A notable shift is the increasing integration of electronic content, set to constitute up to 50% of new vehicle costs, driven by the proliferation of connected and autonomous vehicle technologies. In premium vehicles, electronic components already represent around 30% of the total cost. The automotive industry, ranking among the top consumers of electronic products globally, is marked by over 100 Electronic Control Units (ECUs) in premium cars, controlling functions from power and engine management to comfort and security features. Innovations in Advanced Driver-Assistance Systems (ADAS) are a focal point, with nearly one-third of new vehicles in major markets featuring ADAS functionalities in 2021. This underscores the industry's commitment to enhancing safety standards through cutting-edge technologies, shaping the trajectory of automotive electronics on a global scale.

Challenges and Opportunities:

The global markets for automotive electronics, spanning both Internal Combustion Engine (IC) vehicles and Electric Vehicles (EVs), present a landscape rife with challenges and opportunities. As electronic content becomes more pervasive, challenges arise in terms of the increased complexity and potential cybersecurity threats. Balancing cost considerations, especially in the transition to electric vehicles where electronic components can constitute up to 70% of the total cost, poses a significant challenge for industry stakeholders. However, these challenges also give rise to opportunities for innovation, with a focus on developing cost-effective and secure electronic solutions. The growing demand for Advanced Driver-Assistance Systems (ADAS) creates avenues for technological advancements, while the global push for sustainability opens doors for breakthroughs in energy-efficient and eco-friendly electronic components. Successfully navigating these challenges and seizing these opportunities will be instrumental in shaping the future of automotive electronics on a global scale.

This report on the automotive electronics: global markets for IC engine and EVs market provides comprehensive insights and analysis, addressing the following key questions:

        1. What is the anticipated size and expansion rate of the Automotive Electronics market?

The Automotive Electronics market, valued at $321.5 billion in 2022, is forecasted to attain $508.0 billion by 2028. Projections indicate a compound annual growth rate (CAGR) of 8.5% during the period from 2023 to 2028.

       2. What factors contribute to the expansion of the Automotive Electronics market?

The demand for automotive electronics is propelled by government initiatives to enhance vehicle safety, advancements in vehicle technology driving the need for electronic products, a shift in the automotive business model towards Mobility-as-a-Service, and evolving consumer interests with a growing awareness of battery-powered vehicles.

       3. Which areas are included in the Automotive Electronics market segmentation?

The segmentation of the Automotive Electronics market encompasses application, vehicle type, propulsion type, sales channel, and regional categorizations.

       4. Which propulsion type segment is projected to lead the market by the conclusion of 2028?

The electric vehicle segment is anticipated to dominate the market by the end of 2028.

       5. In the Automotive Electronics market, which region commands the largest market share?

The Asia-Pacific region boasts the highest share in the global market.

       6. Which companies or players are prominent in the Automotive Electronics market?

Leading entities in the market comprise Aptiv PLC, Continental AG, DENSO CORPORATION, HELLA GmbH & Co. KGaA, HYUNDAI MOBIS CO., LTD., LEAR CORP., Magna International Inc., Panasonic Automotive Systems Co., Ltd., Robert Bosch GmbH, Sumitomo Electric Industries, Ltd., Valeo, and ZF Friedrichshafen AG.

Some of the Key Market Players Are:

• APTIV PLC
• CONTINENTAL AG
• DENSO CORP.
• HELLA GMBH & CO. KGAA
• HYUNDAI MOBIS
• LEAR CORP.
• MAGNA INTERNATIONAL INC.
• PANASONIC AUTOMOTIVE SYSTEMS CO. LTD.
• ROBERT BOSCH GMBH
• SUMITOMO ELECTRIC INDUSTRIES LTD.
• VALEO
• ZF FRIEDRICHSHAFEN AG

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