The motor vehicle electrical and electronic equipment market consists of sales of motor vehicle electrical and electronic equipment and related services used for motor vehicles including cars, buses, motorcycles, off-road vehicles, light trucks, and regular trucks. The electrical and electronic components of motor vehicles include battery, starter and alternator, fans, electric cooling, windshield washer pump, and windshield wiper systems. It also includes equipment that are electrically operated systems built into vehicles such as fuel injection systems, airbags, and advanced driver assistance systems.
The global motor vehicle electrical and electronic equipment market is expected to grow from $45.6 billion in 2020 to $47.88 billion in 2021 at a compound annual growth rate (CAGR) of 5%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $69.07 billion in 2025 at a CAGR of 10%.
The motor vehicle electrical and electronic equipment market covered in this report is segmented by product type into lighting equipment, automatic voltage and voltage-current regulators, insulated ignition wiring sets, generators for internal combustion engines, spark plugs for internal combustion, others.
The motor vehicle electrical and electronic equipment market is driven by the increase in the demand for safer vehicles installed with electrical and electronic safety equipment to minimize the risk of road accidents. The rise in the number of accidents is a result of reckless driving, over speeding, decline to follow traffic rules, and drunken driving. Electrical and electronic systems such as anti-lock braking systems (ABS) increases the safety of the vehicle by preventing wheels from locking up during a fast braking process. According to the report by WHO in 2018, approximately 1.35 million people die each year as a result of road traffic crashes. In order to lower the risk of such accidents, the United States under the provisions of Federal Motor Vehicle Safety Standard (FMVSS 126), mandated ABS in all passenger cars sold in the U.S. The demand for vehicles that are less prone to accidents holds a positive impact on the growth of the motor vehicle electrical and electronic equipment market.
The risk of life-threatening accidents due to the failure of electrical and electronic equipment in motor vehicles holds a negative impact on the growth of the motor vehicle electrical and equipment market. Any malfunctions with the electrical systems in the vehicles can lead to serious accidents. As reported by the U.S. Department of Transportation’s National Highway Traffic Safety Administration, an agency of the U.S. federal government electrical system failure was the cause of 21% of motor vehicle accidents. In 2020, Toyota and Honda to recall over 6 million vehicles globally, which is a danger to travellers. The Toyota recall affects about 3.4 million vehicles globally and is being done because the airbags may not expand in a crash. Honda's recall covers approximately 2.7 million vehicles in the US and Canada with Takata airbag inflators. The risk involved with the failure of electrical and electronic equipment in motor vehicles restricts the growth of the market.
The motor vehicle electrical and electronic equipment manufacturers are investing in improving the electronic sensors used in motor vehicles such as cars, trucks to increase visibility and awareness. Some vehicle sensors include ambient light, battery current, differential oil temperature, door open warning, anti-lock braking system (ABS), auto door lock position, battery temperature, brake power booster. Companies involved in the market are now developing sensors coupled with artificial intelligence and mobile connectivity. For instance, BMW in 2019 launched its BMW natural interaction system that uses voice commands, gesture control, and facial recognition to set temperatures according to preferences of the driver, to open windows through a combination of the driver pointing and giving verbal instruction. The new sensory technology is said to be used in iNext vehicle to be launched in 2021. The improvement in sensor technology marks the latest trend among the companies involved in the motor vehicle electrical and equipment market.
In 2018, LG Electronics, a South Korean multinational electronics company acquired Austrian based ZKW Group for $1.3 billion. In the deal, LG Electronics acquired a 70% stake in ZKW Group while the parent company LG Corp. acquired the remaining 30% stake. Through the acquisition, LG aims to expand its business in the global lighting sector for vehicle components. ZKW Group designs and produces complex premium lighting and electronic modules for international automakers and holds a strong presence in markets throughout Europe in addition to China, Mexico, and the United States.
The major players covered in the global motor vehicle electrical and electronic equipment market are Bosch, General Motors Corp., Tennaco, DENSO Manufacturing Tennessee, Delphi Corp, Hyundai, Hella, Technitrol Delaware Inc, Ford Motor Co., Technitrol Delaware Inc, Honeywell International Inc., Delphi Corp, Mars Inc., Raytheon Co., ZF TRW, ITT Federal Services Corp, Textron Inc., Cummins Inc., Infineon Technologies AG, Hitachi Ltd, HGM Automotive, Delta Electronics, Atotech Deutschland.
The countries covered in the global motor vehicle electrical and electronic equipment market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.
The regions covered in the global motor vehicle electrical and electronic equipment market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The global motor vehicle electrical and electronic equipment market is segmented -
1) By Product Type: Lighting Equipment, Automatic Voltage And Voltage-Current Regulators, Insulated Ignition Wiring Sets, Generators For Internal Combustion Engines, Spark Plugs For Internal Combustion, Others