How Has the Automotive Electronics Market Size Evolved in Recent Years?
The automotive electronics market has seen considerable growth due to a variety of factors.
• The market size of automotive electronics has seen substantial growth in the past few years. The market is projected to expand from $295.42 billion in 2024 to $320.36 billion in 2025, growing at a compound annual growth rate (CAGR) of 8.4%.
The previous growth has been driven by the strong economic growth in developing markets, a surge in the demand for commercial vehicles, a rising demand for passenger vehicles and an increase in disposable income.
What Are The Estimated Market Size And Expected Annual Growth Rates For Globa Automotive Electronics Market?
The automotive electronics market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the automotive electronics market size is predicted to experience robust expansion, reaching a value of $454.87 billion in 2029 with a compound annual growth rate (CAGR) of 9.2%.
The growth during the forecast period can be linked to the rising demand for electric vehicles, a surge in automobile production, increase in government support, and the growing requirement for safety features in automobiles. The forecast period will also see significant trends including the employment of artificial intelligence technology, the introduction of sophisticated power electronics, the utilization of augmented reality (AR), the launching of new and groundbreaking products, and strategic alliances and collaborations aimed at broadening product portfolios and accelerating revenue.
What Are The Essential Drivers Behind The Growth Of The Automotive Electronics Market?
The surge in electric vehicle usage is expected to bolster the expansion of the automotive electronics market. Electric vehicles, which are powered by electricity stored in batteries, are gaining traction due to numerous factors, including defenses against COVID-19 and the desire to reach net-zero emissions. Automotive electronics play a crucial role in these vehicles, particularly in the implementation of the electric powertrain system, which provides enhanced power. A report released by The U.S. Energy Information Administration (EIA), showed that the collective sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in the U.S. rose from 17.8% of total new light-duty vehicle (LDV) sales in the first quarter of 2024 to 18.7% in the second quarter. This serves as an indication that the growing adoption of electric vehicles is propelling the growth of the automotive electronics market.
What Are The Key Segments Within The Global Automotive Electronics Market?
The automotive electronics market covered in this report is segmented –
1) By Type: Advanced Driver Assistance Systems, Body Electronics, Entertainment, Powertrain, Safety Systems, Other Types
2) By Component: Electronic Control Units, Sensors, Current Carrying Devices, Other Components
3) By Vehicle Type: Light Commercial Vehicles, Passenger Vehicles, Heavy Commercial Vehicles, Other Vehicle Types
4) By Sales Channel: OEM, Aftermarket
Subsegments:
1) By Advanced Driver Assistance Systems (ADAS): Adaptive Cruise Control, Lane Departure Warning, Collision Avoidance Systems
2) By Body Electronics: Power Window Systems, Central Locking Systems, Lighting Control Systems
3) By Entertainment: Infotainment Systems, Audio Systems, Navigation Systems
4) By Powertrain: Engine Control Units (ECUs), Transmission Control Units, Hybrid And Electric Powertrain Systems
5) By Safety Systems: Airbag Control Systems, Electronic Stability Control, Traction Control Systems
6) By Other Types: Telematics Systems, Battery Management Systems, HVAC Control Systems
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How Are New Trends Impacting The Size Of The Automotive Electronics Market?
Top corporations in the automotive electronics industry concentrate on designing electronic elements such as high-amperage surface-mount fuses in order to improve dependability and safety in automotive and industrial electronic systems. High-amperage surface-mount fuses, small yet effective electrical components, function to safeguard circuits by withstanding high-current ratings and halting overloads and short circuits. In October 2023, American circuit protection and electronic components manufacturer, Littelfuse, unveiled their Ultra-High Amperage SMD Fuse Series. These specifically target circuit protection across applications, particularly in automotive and industrial electronics. The fuses, compact in their surface-mount design, are drawn by their capacity to endure high current ratings. Through blocking overloads and short circuits, they contribute to the reliability and safe functioning of electronic systems. Furthermore, these low profile fuses are perfectly suited for high-density applications, rendering them ideal for contemporary electronic gadgets.
Who Are the Key Players in the Automotive Electronics Market?
Major companies operating in the automotive electronics market include:
• Denso Corporation
• Robert Bosch GmbH
• ZF Friedrichshafen AG
• Hitachi Ltd
• Aptiv PLC,Continental AG
• Infineon Technologies AG
• NXP Semiconductors N.V.
• STMicroelectronics N.V.
• Texas Instruments
• Delphi Automotive
• Mahindra Electric
• Tata Elxsi
• BYD Auto
• Huawei Technologies
• Tencent Auto
• Baidu
• Contemporary Amperex Technology Co. Limited
• Panasonic Automotive
• Aisin Seiki Co. Ltd
• Sony Corporation
• Pioneer Corporation
• Electro 80
• Autron Automotive Electronics
• REDARC Electronics
• Integrated Micro-Electronics. Inc. (IMI)
• Valeo
• Faurecia
• Actia Group
• Exagan
• Hella GmbH and Co. KGaA
• Brembo
• Marelli Holdings Co. Ltd.
• Renesas Electronics Europe
• Smiths Group
• AVTOVAZ
• Elektrobit (EB) Russia
• Autoliv Romania
• Škoda Auto
• Honeywell Czech Republic
• Metalenz Inc
• Sila Nanotechnologies
• Actnano
• Citrine Informatics
• PreAct Technologies
• Manufacturing Technology. Inc
• Nidec Mobility Brazil Ltda
• Shenzhen Vigreat Electronic Co. Ltd
• Maidstone Auto Electrical
• Sonic Vision Technologies Pty Ltd
What are the Regional Insights into the Automotive Electronics Market?
Asia-Pacific was the largest region in the automotive electronics market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
