Global Automotive Electronics Market Report and Forecast 2024-2032

Global Automotive Electronics Market Outlook

The global automotive electronics market size reached approximately USD 247.67 billion in 2023. The market is projected to grow at a CAGR of 6.5% between 2024 and 2032, reaching a value of around USD 436.72 billion by 2032.

Key Takeaways

• ADAS, an automotive electronics system, can prevent 20,841 deaths in the USA annually.

• Bosch, ON Semi, and Infineon are among the leading manufacturers of automotive sensors globally.

• Automotive sensors are expected to lead the automotive electronics market in the forecast period.

Automotive electronics refers to a wide range of electronic systems that are specifically designed for usage in automobiles. Telematics, ignition, carputers, and engine management systems are some of the key electronic systems that are integrated into automobiles. Their objective is to improve the driving experience, ensure driver safety, and achieve a high degree of fuel efficiency.

The major automotive electronics market drivers include increased consumer concerns surrounding safety, a rise in the adoption of electric vehicles, and innovations in powertrain electronics systems. Advanced automotive electronics solutions are enhancing the safety standards of passenger and commercial vehicles and improving their fuel efficiency. Their design and style are being integrated with electric vehicle technology to make smart and sustainable urban transportation solutions.

Key Trends and Developments

Increased usage of ADAS in automotives; rising adoption of EVs; advancements in the development of autonomous vehicles; and growth of modern infotainment systems are the major trends impacting the market growth.

Global Automotive Electronics Market Trends

In  January 2024, Valeo and Teledyne FLIR received a contract from a major automotive equipment manufacturer to provide thermal imaging cameras to boost road safety. These cameras can be integrated into the night vision system of advanced driver assistance systems of vehicles to ensure the safety of four-wheelers on the road.

There is a growing trend of miniaturisation as it makes space for the installation of better automotive components and reduces the time taken for electric currents to travel from one point to another. This provides greater freedom for introducing innovative vehicle design, and reduces signal processing speed within vehicles, prompting them to take urgent actions in case of an emergency situation. Further innovations in the field of miniaturisation are likely to lead to the automotive electronics market growth in the forecast period.

Market Segmentation

“Global Automotive Electronics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Sensors are expected to dominate the automotive electronics market share in the coming years

With the evolution of autonomous vehicle technology, a surge in demand for automotive sensors is expected to drive the market growth. Cameras, radars, and LiDARs help modern four-wheelers in detecting obstacles through AI processing, high-resolution imaging, and tracking pulse travel time. This ensures that vehicle driving becomes a simpler experience and safety of the driver and passenger is not compromised.

Processors and microcontrollers are also expected to witness a growth in demand as automotive manufacturers improve the features of their infotainment and communication systems and integrate the ADAS technology into their latest models. A similar trend is expected to emerge for actuators and other automotive electronic components, which can drive the automotive electronics market expansion.

Aftermarket is expected to emerge as a leading distribution channel for automotive electronics

Though original equipment manufacturers design and sell premium automotive electronics solutions, aftermarket is expected to constitute a major part of the automotive electronics market share in the forecast period.

Aftermarket providers offer a wide range of models for automotive electronics products, which can cater to the requirements of several automobile companies. However, the demand for OEMs is also expected to remain significant, as established automotive companies utilise customised automotive electronics parts for their vehicles, which improve the driving experience and passenger comfort.

Competitive Landscape

Companies are collaborating with each other to boost innovation and provide improved offerings in the global automotive electronics market.

Other key automotive electronics market players include Robert Bosch GmbH, ZF Friedrichshafen AG, Hitachi Ltd., Magna International Inc., Valeo SE, Infineon Technologies AG, and Visteon Corporation, among others.

Automotive Electronics Market Analysis by Region

North America is expected to lead the market over the forecast period. This is due to rapid technological advancements in the domain of autonomous vehicles and advanced driver assistance systems.

Europe is expected to emerge as another important region in the automotive electronics market, as the rate of adoption of electric vehicles gains momentum and companies introduce innovative infotainment and safety systems within their vehicles. This trend can also be observed in the Asia Pacific region.

With better government support and the creation of a conducive business environment, the Middle East and Africa and Latin America are also expected to witness a strong surge in demand for automotive electronics in the coming years.

Key Highlights of the Report