Global Automotive Electronics Market Expected to Reach $468 Billion by 2030, Fueled by Safety Concerns and Advanced Technologies

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Sep 06, 2023, 06:30 ET

DUBLIN, Sept. 6, 2023 /PRNewswire/ -- The "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 has been added to ResearchAndMarkets.com's offering.

The global automotive electronics market is projected to attain a size of USD 468,165.7 million by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 8.6% during the forecast period.

Increased safety and security concerns are expected to drive the demand for car electronics as governments globally strive to reduce road fatalities.

The growth of driverless automobiles, electric vehicles, and advanced vehicle technologies is also anticipated to fuel the automotive electronics industry. Notable technologically advanced features like alcohol ignition interlocks, emergency call systems, and accident data recorder systems are expected to contribute to market expansion throughout the forecast period.

Impact of Advanced Safety Systems

The adoption of advanced safety systems featuring functions such as automated emergency braking and blind-spot recognition has become more widespread due to affordability. The use of Automotive Electronic Control Units (ECUs) and sensors in these systems is expected to increase, driving growth in the automotive electronics industry. Additionally, these features align with government regulations and policies, potentially paving the way for the adoption of autonomous vehicles. The electronic operations in these vehicles are controlled by ECUs and sensors, leading to increased demand for these components.

Semiconductor Chip Shortages

The recent global shortage of semiconductor chips has also impacted the automotive electronics market. Automakers have faced significant challenges due to the semiconductor chip shortage, resulting in temporary production halts at their facilities. The pandemic's supply chain disruptions and rising demand have led to automakers like General Motors and Ford temporarily shutting down factories in April 2021. Disrupted orders from automotive Original Equipment Manufacturers (OEMs) complicate chipmakers' allocation of supply to meet real-time and short-term demands.

Asia Pacific Dominance

The Asia Pacific region accounted for approximately 41.3% of the overall automotive electronics demand in 2022 and is projected to register the highest CAGR of 9.0% over the forecast period. Demand in the Asia Pacific is primarily driven by China, India, and Japan. China, as a manufacturing hub and fast-growing economy, is leading in the automotive market. Additionally, initiatives like the Make in India campaign are expected to attract investments in the automotive sector, thereby boosting demand for automotive electronics.

Market Highlights

The sensors segment is expected to achieve the highest CAGR of around 9.9% in terms of component. Favorable government initiatives for passenger safety and security contribute to this growth.
The safety system segment emerged as the largest application segment in 2022. Increasing customer awareness about safety-related technological advancements in vehicles is expected to drive growth in the safety systems segment.
The Original Equipment Manufacturer (OEM) segment led in terms of sales channel in 2022 due to increased durability and shelf-life of electronic components.
The Asia Pacific regional market held the largest revenue share in 2022, driven by rising vehicle production in India, China, and Japan.

Companies Mentioned

CONTINENTAL AG
DENSO CORPORATION
Hella Gmbh & Co. Kgaa (Hella)
Infineon Technologies AG
Robert Bosch GmbH
Valeo Inc.
ZF Friedrichshafen AG
Hitachi Automotive Systems, Ltd.
Visteon Corporation
Xilinx, Inc.

The automotive electronics market is poised for significant growth, driven by safety concerns, adoption of advanced systems, and advancements in vehicle technologies, while facing challenges related to semiconductor chip shortages.

For more information about this report visit https://www.researchandmarkets.com/r/8oedzo

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