Global Automotive Electronics Market by Component (Current Carrying Devices, Sensors, Electronic Control Unit) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global automotive electronics market was worth USD 217.56 billion in 2020. It is projected to grow at 7.9% compound annual growth rate (CAGR), between 2021 and 2028. Over the forecast period, there will be a rise in demand for advanced safety systems like automatic emergency brake, airbags and parking assistance systems. Market growth is expected to be driven by features like accident data recorder, alcohol ignition interlocks, emergency call systems and emergency call systems to protect passengers in vehicles.

Automobile manufacturers are investing substantial capital in research and development to develop high-performance electronics and energy storage technology at a low cost. OEMs are increasingly dependent on electronics for high levels of safety. Electronic components in automotive made up around 35% of total vehicle costs by 2020. With technological advances, the automotive electronic component market is expected to be around half of total vehicle costs by 2030.

Demand for automotive electronics components will also increase with the increasing adoption of hybrid electric vehicles (HEV) as well as electric vehicles (EV). Electronics can also be used to replace mechanical parts with electronic ones, such as electronic switches in place of relays. This will allow electronics to address many automotive industry needs, while increasing reliability and decreasing the weight of wire harnesses. The demand will rise due to technological advancements in vehicle safety and government regulations to reduce road accidents.

Due to their convenience, comfort, and efficiency, there is a growing demand for car infotainment systems. This in turn drives the need for in-vehicle storage to store complex features. This will be a key driver for the market growth in infotainment apps.

Due to the COVID-19 pandemic worldwide, there has been a huge setback in the economy. This negatively impacted automotive production. COVID-19 caused disruptions in the supply chain, resulting in several production plants being halted. The COVID-19 outbreak has had a negative impact on passenger and commercial vehicle sales. This in turn has had an adverse effect on the automotive sector's demand. In the past, the EU market was the largest for automotive electronic components sales. However, recent declines in regional automotive sales have led to a decrease in adoption rates. Europe will likely experience mixed recovery cycles due to both local and economic stimulus packages. According to the German Association of the Automotive Industry, (VDA), 5.1 million passenger vehicles were registered in Europe in the first half of 2020. This is 39% more than in 2019. In the United States, passenger vehicle sales declined by 26% in 2020, compared with the previous year.

Component Insights

In 2020, the current carrying device segment was responsible for 41% of all revenue. Electronic switches, fuses and connectors are all part of current carrying devices. A large market share in current-carrying devices is due to the high price and the number of electronic components, such as fuses, connectors and wiring harnesses used in vehicles. This segment's growth can also be attributed the growing demand for connectivity, convenience and safety features in passenger cars, as well as commercial vehicles.

From 2021 to 2028, the sensors segment will experience a 3.8% CAGR. Sensors include devices that detect physical parameters, proximity and position of vehicles, chemical properties, and process variables. Revenue growth is expected to be driven by favorable government initiatives in different regions for passenger safety, security and protection. These devices are an integral part of automobiles as they can detect temperature, speed, tire pressure, condition and take preventive measures in the event of danger.

Application Insights

In 2020, the safety systems segment held 29% of all the market. Safety systems include components like airbags and tire pressure monitoring systems, keyless access systems, electronic brake distributions, electronic stability control, power steering, suspension control, and electric power steering. The safety system segment is likely to grow if customers are more aware of technological changes in safety equipment.

From 2021 to 2028, the Advanced Driver Assistance System segment (ADAS), is expected to experience a CAGR of 10.6%. Due to their increased functionality and application, the demand for ADAS sensors has been increasing exponentially. Sensors are an integral part of ADAS. Sensors are used in ADAS for a variety of purposes, including primary stereo cameras and the most recent LiDAR. The forecasted increase in automated driving will fuel the demand of automotive electronic components.

Sales Channel Insights

In 2020, the OEM segment held 68% of the market share. Due to their increased durability and shelf life, the OEM segment dominated automotive electronics market in 2020. Because electronic components are an integral part of vehicles, OEMs are preferred by consumers to purchase genuine parts. In addition, the demand for aftermarket electronic parts is expected to decrease due to the increasing complexity of electronic components.

From 2021 to 2028, the aftermarket segment will experience a 6.8% CAGR. The aftermarket is the secondary market in the automotive industry that deals with the manufacture, remanufacturing and distribution of vehicle accessories and parts. This happens after the sale of an automobile by the OEM to the customer. The market share for aftermarket components will decline as electronic components become more complex over the forecast period.

Regional Insights

Asia Pacific accounted for over 40% of the market's revenue in 2020. It is expected to maintain its dominance during the forecast period, with a CAGR exceeding 8.3%. The flourishing electronics component manufacturing industry has significantly contributed to market growth in countries like Thailand, South Korea and Malaysia. The majority of Asia Pacific's automotive electronics demand is met by Japan and China. The limited number of automobile electronics manufacturers in Asia Pacific presents a great investment opportunity for regional suppliers. This allows them to capitalize on local demand and makes the region attractive for investors.

North America's market is expected to see significant growth due to its high level of vehicle production and presence of electronic component manufacturers like TRW Automotive, Continental Corporation, Robert Bosch GmbH, and Autoliv, Inc.

Market Share Insights & Key Companies

In 2020, the major players in the global market were: Continental Corporation, Robert Bosch GmbH, Autoliv, Inc., Samsung, Delphi Technologies, Denso Corporation, and ZF Friedrichshafen AG. These companies focus on offering technologically advanced and innovative products that will enhance their market offerings. To grow their market share, these companies also undertake strategic initiatives like regional expansions, mergers and partnerships, as well as collaborations.

The industry's key strategy is organic growth. This means that product launches are the best way to create new products and expand existing product offerings. DENSO Corporation, for example, announced in April 2021 that it would be developing products with advanced driver assistance technology to fit the new Lexus LS. Advanced Drive, which was just developed, would feature LiDAR to detect the shapes of nearby vehicles and roads. The following are some of the major players in the global automotive electronics market:

• 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.

Up Market Research published a new report titled “Automotive Electronics Market research report which is segmented by Component (Current Carrying Devices, Sensors, Electronic Control Unit), By Players/Companies Hella GmbH& Co KGaA, Valeo Inc, Visteon Corporation, ZF Friedrichshafen AG, DENSO Corporation, Infineon Technologies AG, Xilinx Inc, Continental AG, Hitachi Automotive Systems Ltd, Robert Bosch GmbH”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Automotive Electronics Market Report Segments:

The market is segmented by Component (Current Carrying Devices, Sensors, Electronic Control Unit).

Automotive Electronics Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Automotive Electronics Market

Overview of the regional outlook of the Automotive Electronics Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Automotive Electronics Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Automotive Electronics Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Current Carrying Devices

                2. Sensors

                3. Electronic Control Unit

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Automotive Electronics Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Automotive Electronics Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.