Automotive Electronics Market Is Expected To Drive Growth Over The Forecast Period
Automotive Electronics Industry Overview
The global automotive electronics market size was valued at USD 217.86 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2021 to 2028. The increasing integration and implementation of advanced safety systems such as automatic emergency braking, airbags, parking assistance systems, and lane departure warning to decrease road accidents is expected to favor demand over the forecast period. Moreover, features such as emergency call systems, alcohol ignition interlocks, and accident data recorder systems are rapidly adopted to safeguard in-vehicle passengers and are expected to drive market growth over the forecast period.
Automotive manufacturers are making substantial capital investments in research and development activities to develop energy storage technology and high-performance electronics at a reasonable cost. Moreover, OEMs are becoming more dependent on electronics to deliver a high safety level. In 2020, electronic components in the automotive accounted for around 35% of the total vehicle cost. However, with advances in technologies, automotive electronic components are expected to account for around 50% of the total vehicle cost by 2030.
Gather more insights about the market drivers, restrains and growth of the Global Automotive Electronics market
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 rising demand for in-car infotainment systems due to their increased comfort, efficiency, and convenience is, in turn, driving the demand for in-vehicle data storage to support complex in-vehicle features. This is anticipated to be one of the crucial drivers for the growth of the market in infotainment applications.
The economy worldwide has faced a massive setback due to the COVID-19 pandemic, negatively impacting automotive production. The aftermath of COVID-19 has resulted in supply chain disruptions with several production facilities coming to a halt. The outbreak has taken a toll on passenger and commercial vehicle sales, subsequently impacting the demand f in the automotive sector. The EU market in the past has led the automotive electronic component sales; however, recently, the adoption rate has witnessed a decline due to a dip in automotive sales in the region. Europe is likely to see mixed recovery cycles owing to the economic stimulus packages and local restrictions. 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.
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- Vehicle Electrification Market - The global vehicle electrification market was valued at USD 82.91 billion in 2021 and is projected to register a compound annual growth rate (CAGR) of 9.7% from 2022 to 2030. The market is expected to register significant growth owing to the automotive industry's demand for alternatives to petroleum-based fuel and government initiatives for environmentally sustainable transportation options globally.
- Automotive Brake System Market - The global automotive brake system market size was valued at USD 45.60 billion in 2021 and is projected to expand by a compound annual growth rate (CAGR) of 5.4% from 2022 to 2030. The market for automotive brake systems is expected to rise significantly, owing to increased demand for passenger and commercial vehicles in countries such as India and China.
Automotive Electronics Market Segmentation
Grand View Research has segmented the global automotive electronics market based on component, application, sales channel, and region:
Automotive Electronics Component Outlook (Revenue, USD Million, 2016 - 2028)
- Electronic Control Unit
- Sensors
- Current Carrying Devices
- Others
Automotive Electronics Application Outlook (Revenue, USD Million, 2016 - 2028)
- ADAS
- Infotainment
- Body Electronics
- Safety Systems
- Powertrain Electronics
Automotive Electronics Sales Channel Outlook (Revenue, USD Million, 2016 - 2028)
- OEM
- Aftermarket
Automotive Electronics Regional Outlook (Revenue, USD Million, 2016 - 2028)
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies profiled:
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.
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