Global Automotive Electronics Market 2024–2033

Reports Description

As per the current market research conducted by CMI Market Research Team, the global Automotive Electronics Market is expected to record a CAGR of 8.7% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 244.95 Billion. By 2032, the valuation is anticipated to reach USD 468.78 Billion.

The automotive electronics market refers to the production and sale of electronic components and systems used in automobiles. These electronic components include sensors, control units, infotainment systems, and power electronics, among others.

The market also includes the development of software and algorithms for advanced driver-assistance systems (ADAS), connected car technologies, and electric vehicles. Automotive electronics play a vital role in ensuring vehicle safety, efficiency, and comfort. With the increasing demand for smart and connected vehicles, the automotive electronics market is expected to grow significantly in the coming years.

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Automotive Electronics Market - Significant Growth Factors

Some significant growth trends in the automotive electronics market are:

• Growing demand for connected and autonomous vehicles: With the increasing need for safety and convenience, the demand for connected and autonomous vehicles is on the rise. Automotive electronics, such as advanced driver-assistance systems (ADAS), radar and lidar sensors, and camera systems, are essential components for achieving autonomy and connectivity.
• Rising adoption of electric vehicles: The global shift towards sustainable and eco-friendly transportation is driving the demand for electric vehicles. Automotive electronics, such as battery management systems (BMS), power electronics, and electric vehicle charging solutions, are critical components for the efficient operation of electric vehicles.
• Increasing integration of infotainment systems: The integration of infotainment systems with other automotive electronics, such as ADAS and connectivity systems, is becoming increasingly popular. This integration provides a seamless and connected experience for drivers and passengers, enhancing the overall driving experience.
• Advancements in technology: With continuous advancements in technology, automotive electronics are becoming more sophisticated and capable of performing advanced functions. This trend is expected to continue as the market demands more advanced and intelligent automotive electronics solutions.
• Growing demand for in-vehicle safety systems: Automotive electronics, such as ADAS and other safety systems, are becoming more prevalent as vehicle safety becomes a top priority for consumers. This trend is expected to continue, with more advanced safety features being incorporated into vehicles in the future.

Automotive Electronics Market - Mergers and Acquisitions

Here are some recent mergers and acquisitions in the automotive electronics market:

Samsung's acquisition of Harman International: In 2017, Samsung acquired Harman International Industries for $8 billion, to enhance its position in the automotive electronics market. Harman is a leading provider of connected car solutions, including infotainment systems, telematics, and cybersecurity.

Qualcomm's acquisition of NXP Semiconductors: In 2018, Qualcomm completed its acquisition of NXP Semiconductors for $44 billion, creating a leading provider of semiconductor solutions for the automotive industry. NXP is a major supplier of automotive electronics, including advanced driver-assistance systems (ADAS), vehicle-to-everything (V2X) communication, and secure vehicle networking.

Aptiv's acquisition of Winchester Interconnect: In 2019, Aptiv acquired Winchester Interconnect, a provider of high-performance interconnect solutions for harsh environments, including the automotive industry. This acquisition expanded Aptiv's product portfolio in the automotive electronics market, particularly in the areas of electrical distribution systems and signal integrity solutions.

Magna International's acquisition of Veoneer: In 2021, Magna International completed its acquisition of Veoneer, a leading supplier of automotive safety electronics, for $3.8 billion. The acquisition strengthened Magna's position in the automotive electronics market, particularly in the areas of advanced driver-assistance systems (ADAS) and autonomous driving technology.

KKR's acquisition of Magneti Marelli: In 2019, KKR completed its acquisition of Magneti Marelli, a major supplier of automotive electronics and lighting systems, for $7.2 billion. This acquisition created a leading independent automotive components supplier, with a strong presence in the automotive electronics market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Automotive Electronics Market - Significant Threats

Some significant threats to the automotive electronics market include:

• Cybersecurity risks: As vehicles become increasingly connected and reliant on electronics, they also become more vulnerable to cyber-attacks. Cybersecurity threats can potentially compromise the safety and functionality of automotive electronics systems.
• Disruption from new entrants: New entrants, particularly those from the technology sector, are disrupting the traditional automotive supply chain. Companies like Tesla and Google are developing their own automotive electronics systems, which could potentially challenge traditional suppliers.
• Shortage of skilled labor: The automotive electronics industry requires skilled engineers and technicians to design and maintain complex systems. However, there is a shortage of skilled labor in the industry, which could potentially limit growth and innovation.
• Cost pressures: The automotive industry is under significant cost pressures, particularly with the rise of electric and autonomous vehicles. Electronics make up a significant portion of the cost of these vehicles, which could potentially limit adoption and growth.
• Changing regulations: The automotive industry is subject to changing regulations around emissions, safety, and data privacy. These regulations can impact the design and functionality of automotive electronics systems, and suppliers must remain agile and adaptable to stay competitive.

Report Scope

Category-Wise Insights

Component Insights:

In 2022, the current carrying devices segment held the largest revenue share, accounting for approximately 42% of the market. This segment includes electronic switches, fuses, connectors, and wiring harnesses, all of which are crucial components in vehicles.

The high cost of these components, coupled with the increasing demand for connection, convenience, and safety features in both passenger and commercial vehicles, has contributed to the significant market share of current-carrying devices. As a result, this segment is expected to continue its growth trajectory.

Application Insights:

In 2022, the safety systems segment held the largest revenue share of approximately 29% in the automotive electronics market. This segment includes components like airbags, keyless entry systems, electric power steering, electronic brake distribution, tire pressure monitoring systems, electronic stability control, and suspension control.

The market's significant growth can be attributed to the increasing consumer awareness of technological advancements affecting safety equipment in vehicles. As a result, the safety systems segment is expected to continue its upward trajectory in the coming years.

Sales Channel Insights:

In 2022, the OEM segment held the largest share of approximately 67% in the global automotive electronics market. The dominance of the OEM segment was due to the extended lifespan and durability of electronic components.

As electronic components form a crucial part of vehicles, consumers opt for purchasing them from OEMs to acquire authentic parts. Moreover, with the growing complexity in the design of these electronic components, the aftermarket electronic components are expected to hold a lower revenue share during the forecast period.

Automotive Electronics Market - Regional Analysis

In 2022, the Asia Pacific automotive electronics industry held the highest revenue share of 42.5%, and it is expected to maintain its dominance over the forecast period with a CAGR of more than 10.0%.

The market growth is largely attributable to countries such as Taiwan, South Korea, Malaysia, and Thailand, where electronic component manufacturing activities have flourished and contributed significantly to the market's expansion.

North America and Europe are also significant automotive electronics markets, driven by the presence of leading automobile manufacturers and high consumer demand for technologically advanced vehicles.

The Middle East and Africa and Latin America are also expected to witness substantial growth, driven by an increase in vehicle production and rising consumer disposable income. However, the market growth may be hindered by the lack of proper infrastructure and regulatory framework in these regions.

Competitive Landscape – Automotive Electronics Market

In 2022, the global automotive electronics industry was dominated by key players such as

• Continental Corporation
• Robert Bosch GmbH
• Autoliv Inc.
• Samsung
• Delphi Technologies
• Denso Corporation,
• ZF Friedrichshafen AG.
• Others

These companies are primarily focused on offering technologically advanced products to enhance their product portfolio. To expand their market presence, these companies are undertaking strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations.

The automotive electronics industry primarily focuses on organic growth as its key strategy, which involves launching new and innovative products to expand its offerings. For instance, in December 2022, the Chinese government signed an investment agreement with the global technology company, ZF Group, to construct a highly automated and intelligent factory in Guangzhou that will manufacture advanced driver assistance products and new electronics.

This move is expected to increase China's production capacity in fields like brake electronics, sensors, and autonomous driving, among others.

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America

The Automotive Electronics Market is segmented as follows:

Component Outlook

• Electronic Control Unit
• Sensors
• Current Carrying Devices
• Others

Application

• ADAS
• Infotainment
• Body Electronics
• Safety Systems
• Powertrain Electronics

Sales Channel

• OEM
• Aftermarket

By Region