Automotive Electronics Market Analysis and Global Forecast 2023-2033

Automotive Electronics Market Overview

Automotive Electronics Market Size is expected to reach USD 0.36 Billion by 2033. The Automotive Electronics industry size accounted for USD 0.24 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 11.54% from 2023 to 2033. Automotive Electronics Market refers to the industry that designs, manufactures, and markets electronic systems and components for automotive applications. These systems include powertrain control, chassis control, safety and security, infotainment, and telematics. The market is driven by the increasing demand for advanced driver assistance systems (ADAS), autonomous driving technologies, and connected car services. The market is also influenced by the growing trend towards electrification of vehicles, with hybrid and electric vehicles requiring more sophisticated electronic systems.The market is expected to grow at a significant rate in the coming years, driven by the increasing demand for safety, comfort, and convenience features in vehicles

Global Automotive Electronics Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has caused supply chain hiccups, which have decreased demand or created shortages in the automotive electronics sector. Spending by consumers and businesses has decreased significantly as a result of the travel restrictions and social distancing measures, and this trend is expected to persist for some time. The epidemic has altered end-user trends and tastes, leading manufacturers, developers, and service providers to implement several measures in an attempt to stabilize their businesses.

Global Automotive Electronics Market Dynamics

The major factors that have impacted the growth of Automotive Electronics are as follows:

Drivers:

⮚      Rapid Technological Advancements

Ongoing advancements in semiconductor technology, including the development of more powerful and energy-efficient microcontrollers, sensors, and communication modules, are driving innovation in automotive electronics and enabling the implementation of new features and functionalities.

Restraint:

• Cybersecurity Risks

Connected vehicles are vulnerable to cybersecurity threats, including hacking, malware, and data breaches. As vehicles become more interconnected and reliant on electronic systems, cybersecurity risks become more pronounced. Ensuring the security of automotive electronics requires ongoing investment in robust cybersecurity measures, which could add to development costs and complexity.

Opportunity:

⮚      Connected Car Technologies

The proliferation of connected car technologies offers numerous opportunities for automotive electronics companies. Connected vehicles rely on electronic systems for in-vehicle infotainment, telematics, over-the-air updates, and vehicle-to-everything (V2X) communication. As connectivity becomes increasingly integral to the automotive experience, the demand for advanced electronic components and software solutions will continue to rise.

Automotive Electronics Market Segment Overview

By Vehicle type

Based on the Vehicle type, the market is segmented based on Passenger Car, LCV and HCV. In the Passenger Car segment, the automotive electronics market sees a surge in demand for advanced safety features, infotainment systems, and driver assistance technologies, fueling steady growth. Similarly, in Light Commercial Vehicles (LCVs), there’s a rising adoption of telematics, connectivity solutions, and fuel efficiency enhancements, driving market expansion.

By Component

Based on Component, the market has been divided into Sensors, Actuators, Processors, Microcontrollers and Others. In the Automotive Electronics Market, the Sensors segment witnesses substantial growth driven by the increasing integration of advanced sensor technologies for safety and autonomous driving applications. Actuators also play a pivotal role, experiencing a surge in demand owing to the rising adoption of electric and hybrid vehicles, enhancing vehicle control and efficiency.

By Application

Based on the Application, the market has been divided into ADAS, Infotainment, Body Electronics, Safety System, Power Train and Others. the ADAS segment is experiencing rapid growth due to increasing emphasis on vehicle safety and autonomy, driving demand for advanced driver assistance systems. Infotainment remains a key focus, with consumers seeking enhanced connectivity and entertainment options, while Body Electronics witness innovation with features like keyless entry and advanced lighting systems.

By Distribution Channel

Based on Distribution Channel, the market has been divided into OEM and Aftermarket. The Automotive Electronics Market, segmented by distribution channels into OEM and Aftermarket, reflects a dynamic landscape. OEM channels primarily serve new vehicle manufacturing, offering integrated electronic systems, while the Aftermarket segment focuses on replacement and customization, providing consumers with a wide array of standalone electronic components and systems tailored to individual needs.

Global Automotive Electronics Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Automotive Electronics, followed by those in Asia-Pacific and Europe.

Automotive Electronics North America Market

The North American region holds a dominant position in the Automotive Electronics market. The market for automotive electronics in North America, which was valued at USD 103.81 billion in 2021, is anticipated to increase at a substantial CAGR during the course of the study. The car industry makes large investments in R&D to produce energy storage technologies and high-performance electronics at a competitive price. In addition, OEMs rely more and more on electronics to provide superior safety.

Automotive Electronics Asia Pacific Market

The Asia-Pacific region is witnessing rapid growth and emerging as a significant market for the Automotive Electronics industry. The largest increase was seen in the Asia Pacific Automotive Electronics market area. Taiwan, South Korea, Malaysia, and Thailand are just a few of the countries that have made significant contributions to the expansion of the vehicle electrical connections market because of their thriving electronic component manufacturing activities. The majority of the auto electronics required in the Asia-Pacific area are supplied by China and Japan.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Robert Bosch, Renesas Electronics Corporation, Infineon Technologies AG, STMicroelectronics N.V., and Texas Instruments are some of the leading players in the global Automotive Electronics Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Robert Bosch
• Renesas Electronics Corporation
• Infineon Technologies AG
• STMicroelectronics N.V.
• Texas Instruments
• NXP Semiconductors N.V.
• Continental AG
• NVIDIA Corporation
• Hitachi Ltd.
• Aptiv PLC.

Key Development:

July 2021: Renesas Semiconductor Manufacturing CO., Ltd., a fully owned subsidiary of Renesas Electronics Corp., a leading provider of cutting-edge electrical and semiconductor solutions, announced its plan to consolidate the Yamaguchi Factory by the end of June 2022.

Scope of the Report

Global Automotive Electronics Market, by Vehicle Type

• Passenger Car
• LCV
• HCV

Global Automotive Electronics Market, by Component

• Sensors
• Actuators
• Processors
• Microcontrollers
• Others

Global Automotive Electronics Market, by Application

• ADAS
• Infotainment
• Body Electronics
• Safety System
• Power Train
• Others

Global Automotive Electronics Market, by Distribution Channel

• OEM
• Aftermarket

Global Automotive Electronics Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $0.36 Billion
CAGR	11.54% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Vehicle Type ,Component, Application, Distribution Channel
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Robert Bosch, Renesas Electronics Corporation, Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments, NXP Semiconductors N.V., Continental AG, NVIDIA Corporation, Hitachi Ltd., Aptiv PLC.
Key Market Opportunities	Electronic fuel injection Advanced driver assistance
Key Market Drivers	Active safety system demand Demand for cutting-edge infotainment systems is increasing

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Automotive Electronics Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Automotive Electronics market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Automotive Electronics market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Automotive Electronics Market.