Automotive Electronics Industry Overview

The global automotive electronics market size was valued at USD 262.60 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2030. The increasing integration and implementation of advanced safety systems such as automatic emergency braking, airbags, parking assistance systems, and lane departure warning to decrease road accidents is expected to favor demand over the forecast period. Moreover, features such as emergency call systems, alcohol ignition interlocks, and accident data recorder systems are rapidly adopted to safeguard in-vehicle passengers and are expected to drive market growth over the forecast period.

The increasing demand for electric vehicles is driving the demand for automotive electronics. Many people are switching from fuel ignited vehicles to electrics vehicles, and this is increasing the demand for systems. It has increased the demand for battery management systems and electric powertrains of electric vehicles. However, apart from the growing demand for electric vehicles, government regulations and funding have also impacted positively the automotive electronics market growth.

Gather more insights about the market drivers, restrains and growth of the Automotive Electronics Market

Detailed Segmentation:

Component Insights

Current carrying devices segment led the market and accounted for 40.2% in 2023.Current carrying devices are essential components in the automotive industry, as they transmit electrical power and signals throughout the vehicle's electrical system. The demand for current-carrying devices in the component segment is due to the high cost and numerous electronic components used in vehicles, including switches, fuses, connectors, and wiring harnesses.

Application Insights

The safety systems segment accounted for the largest market revenue share in 2023. The demand for efficient, safe, convenient driving experiences and stringent safety regulations is rising. Manufacturers such as Continental AG, DENSO Corporation, Infineon Technologies AG, and Robert Bosch GmbH are developing safety systems vehicles to cater to the increasing demand for light and heavy commercial vehicles. Factors such as increasing focus on vehicle safety and the rising number of road accidents contribute to the segment's growth. For instance, in March 2023, Hyundai Motor India Limited launched its new Hyundai Verna with a level 2 ADAS system and 65 advanced safety features, and many others. The new Verna would also feature Hyundai’s Smart Sense safety features that would get automated sensing technology with radars, cameras to detect obstacles, and sensors on the road and assist in corrective warnings and actions.

Sales Channel Insights

The OEM segment led the market in 2023. This dominance can be attributed to the increased durability and shelf-life of electronic components. Since electronic components form an integral part of the vehicles, consumers prefer buying them through OEMs in order to obtain genuine parts. Furthermore, with the increase in the design complexity of these electronic components, aftermarket electronic components are expected to account for a lower revenue share over the forecast period.

Regional Insights

The automotive electronics market in North America is expected to register a considerable growth rate from 2024 to 2030. The region is home to several Automotive Electronics companies that are implementing partnership and collaboration initiatives to grow their demographic presence. For instance, in January 2023, U.S. based automotive electronics supplier, announced technology collaboration with semiconductor and software manufacturer Qualcomm for developing advanced automotive cockpit domain controller which is designed to enable automotive companies’ modern cockpits. Through this partnership, the companies are helping the automotive industry to transform to a more intelligent, customized vehicle experience.

Browse through Grand View Research's Automotive & Transportation Industry Research Reports.

• The global automotive battery market size was valued at USD 48.71 billion in 2016. The market is expected to witness significant growth over the coming years owing to rapid expansion in the automotive industry in emerging economies such as Mexico, Vietnam, Indonesia, India, and Thailand.
• The global apparel logistics market size was estimated at USD 54.96 billion in 2023 and is projected to grow at a CAGR of 6.5% from 2024 to 2030.

Key Companies & Market Share Insights

Some of the key players operating in the market includeDenso Corporation, Robert Bosch GmbH, Xilinx, Inc., Continental AG, Hella GmbH & Co., ZF Friedrichshafen AG, and Infineon Technologies AG.

• Denso Corporation is an automotive supplier offering electrification, powertrain, mobility, thermal, and electronic systems to carmakers across the globe. The company focuses on developing core technologies in four fields, namely automated driving, electrification, connected driving, and factory automation.
• ZF Friedrichshafen AG is engaged in delivering active and passive safety technology for commercial vehicles and passenger cars. It operates through seven divisions, namely Car Chassis Technology, Car Powertrain Technology, Industrial Technology, Commercial Vehicle Technology, Active & Passive Safety Technology, e-Mobility, and ZF Aftermarket. The company has a presence in 230 locations across 40 countries globally.
• Visteon Corporation, Hitachi Automotive Systems Ltd., MotoLink, and iElektron are some of the emerging market participants in the automotive electronics market.

Key Automotive Electronics Companies:

• Continental AG
• DENSO Corporation
• Hella GmbH & Co. Kgaa
• Hitachi Automotive Systems, Ltd.
• Infineon Technologies AG
• Robert Bosch GmbH
• Valeo Inc.
• Visteon Corporation
• Xilinx, Inc.
• ZF Friedrichshafen AG

Automotive Electronics Market Segmentation

Grand View Research has segmented the global automotive electronics market based on component, application, vehicle type, propulsion, sales channel, and region:

Automotive Electronics Component Outlook (Revenue, USD Million, 2018 - 2030)

• Electronic Control Unit
• Sensors
• Current Carrying Devices
• Others

Automotive Electronics Application Outlook (Revenue, USD Million, 2018 - 2030)

• ADAS
• Infotainment
• Body Electronics
• Safety Systems
• Powertrain Electronics

Automotive Electronics Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)

• Two Wheeler
• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Automotive Electronics Propulsion Outlook (Revenue, USD Million, 2018 - 2030)

• ICE
• Electric

Automotive Electronics Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

• OEM
• Aftermarket

Automotive Electronics Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Denmark
  • Sweden
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • UAE
  • Saudi Arabia
  • South Africa

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Recent Developments

• In March 2023, Infineon Technologies AG expanded its partnership with Delta Electronics, Inc., an energy, and power management company that would deepen its innovative activities to provide higher density and more efficient solutions for the growing market of electric vehicles. With partnership would provide EV drivetrain applications such as on-board chargers, DC-DC converters, and traction inverters, along with a wide range of components such as low-voltage and high-voltage microcontrollers and discrete as well as modulus.
• In January 2023, ZF Friedrichshafen AG announced the introduction of Smart Camera 6, a next-generation camera for automated driving and safety systems. The main focus of Smart Camera 6 is to fulfill the demand for 3D surround view and Interior Monitoring Systems with the support of Image Processing Module systems.
• In January 2023, Xilinx, Inc. collaborated with an embedded AI autonomous driving provider, Motovis to provide a solution that combines Motovis’ convolutional neural network (CNN) IP and Zynq system-on-chip (SoC), Xilinx Automotive (XA) platform for forward camera systems' vehicle control and perception in the automotive industry. The aim of the solution is to enhance customers with robust platforms and rapid development.