Global Automotive Electronics Market Size, Share, Forecast Report, 2020-2027
Automotive electronics are used in vehicles to enhance the performance of different electronic parts that are used for improving the vehicle efficiency and running entertainment devices. There are various components, such as carputers, engine management, ignition, radio, telematics, and in-car entertainment systems, which directly or indirectly depend on the electronic systems in automobiles. Automotive electronics are majorly used for electronic fuel injection, advanced driver assistance, airbag, and infotainment. This influences the efficiency of the vehicle systems.
Global automotive electronics market has seen a remarkable growth; expected to progress with the CAGR of ~6.56%. Growing concerns about safety, which lead the demand for active safety system, and rising demand for cutting-edge infotainment system in the vehicle are the major drivers for the automotive electronics market. Increase in demand for better fuel efficient vehicles with more entertainment devices will create an opportunity in the market for new entrants. Increased level of autonomy, and focus on quality and security by software manufacturers will raise the demand for electronics in vehicles. Electronics in automobiles help consumers in securing the data and software. In the automotive industry, the vehicles are transitioning from being hardware-driven to the being software driven. The average number of software applications and electronics components, per vehicle, is growing rapidly, which influences the growth of the market by both, value and volume. Rising concerns regarding protection of electronic systems from damage and stringent government regulations regarding safety in the vehicle are the major challenges for the market. High maintenance and replacement cost will restrain the growth of the market.
The global market for automotive electronics is segmented on the basis of type, sales channel, application, and region. Based on type, the market is segmented into advanced driver assistance systems, body electronics, entertainment, powertrain, safety systems, and others. Based on sales channel, the market is segmented into OEM and aftermarket. On the basis of application, the market is segmented by passenger cars, light commercial vehicle, heavy commercial vehicle, electric vehicle, and two-wheeler.
Geographically, the global automotive electronics market has been divided into four major regions of North America, Europe, Asia Pacific, and Rest of the World. Among all regions, North America is expected to dominate the market during the forecast period followed by Asia Pacific. Strict government regulations standard regarding the vehicle safety will boost the growth of North America market. Increased demand for electric vehicle and infotainment system in vehicles will enhance the market revenue during the forecast period.
The major players in the automotive electronics market include Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (U.S.), Hitachi, Ltd. (Japan), Delta Electronics, Inc. (Taiwan). Atotech (Germany), ZF Friedrichshafen AG (U.S.), Denso Corporation (Japan) and Koninklijke Philips N.V. (Netherlands).