The global automotive electronics market size is expected to reach USD 410.13 billion by 2025 at a CAGR of 8.7% over the forecast period, according to a study conducted by Grand View Research, Inc. Stringent government regulations regarding fuel emission standards along with growing inclusion of road safety systems and demand for state-of-the-art vehicles are anticipated to drive the market. Technological shift towards advanced safety systems is expected to fuel the demand further over the next few years. Functionalities, such as emergency call systems, accident data recorder systems, and alcohol ignition interlocks, are also predicted to spur the market growth.
Essential electronic systems used to ensure the passenger safety include back-up sensing system, airbags, on/off switches for airbags, energy-absorbing steering system, electro-chromatic mirrors/auto-dimming mirrors, head restraints, padded knee bolster, head-up display, and passenger sensing system. Increasing awareness among consumers and initiatives by various governments have boosted the adoption of safety systems in vehicles.
For instance, China and the European Commission launched New Car Assessment Program (NCAP), which mandates the inclusion of Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) feature, thus, improvising the vehicle safety standards. Companies offering infotainment solutions are consolidating features, such as Advanced Driver-Assistance Systems (ADAS) and in-vehicle infotainment.
For instance, NVIDIA Corporation launched the DRIVE CX platform, which can be used for ADAS, as well as infotainment solutions, in next-generation autonomous vehicles. Asia Pacific accounted for the majority share of the market in 2018 and is anticipated to continue the dominance over the forecast period. This growth is attributed to the massive investments in the automotive industry, primarily in emerging economies, such as China, Japan, and India.
Moreover, growing consumer preference for hybrid and luxury vehicles and integration of autonomous technologies in automobiles are augmenting the demand for automotive electronics in the region. Furthermore, demand for in-vehicle infotainment systems for an interactive environment, such as embedded vision systems for real-time image tracking, has gained prominence, specifically in North American and European regions, thereby supporting product demand.
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Further key findings from the study suggest:
- The current carrying devices segment is anticipated to lead the market owing to significantly high penetration of fuses, relays, wiring, and connectors in vehicles
- Safety systems is the largest application segment and is expected to register a CAGR of 8.8% over the forecast period.
- Asia Pacific is expected to be the largest automotive electronics market over the forecast period
- This growth is attributed to the presence of emerging automotive hubs, such as China, and India, in the region
- Some of the prominent industry participants include Robert Bosch GmbH, Continental Corporation, Intel Corporation, Denso Corporation, Aptiv PLC, and ZF Friedrichshafen AG
About Grand View Research:
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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