|Forecast Period :||2018-2019|
|Base Year :||2018|
|Leading Market Segments :||Compact Passenger Car|
|Value in 2018 :||$210.25 Billion|
|Research covered :||100+ Countries|
Global Statistics Representing Automotive Electronics Market Scenario
Automotive electronics is used in an automobile for various applications such as ignition, infotainment system, engine management, telematics to enhance the overall efficiency of the system. The increasing popularity of hybrid and electric vehicles is likely driving considerable attention of electronic system manufacturers. Additionally, technological advancements such as electrical active suspension and Electronic Braking System (EBS) are likely to extend the application range in the automobile sector for an electronic system.
The automotive electronics market is witnessing considerable growth and is likely to grow at the same pace in the coming years. This is attributed to increasing penetration of electric vehicles, increasing demand for the advanced safety system, and continuous development in the new and advanced electrical system such as infotainment, mishap data recorder system, alcohol ignition interlocks, emergency call system, and lighting system. Moreover, with the increased disposable income, consumers are more likely to buy luxurious electronics features such as automated climate control system, cruise control, rearview monitor, and advanced entertainment system. According to the National Automotive Board, and the Department of Heavy Industry, 2,60,669 electric vehicles are sold in India.
The global automotive electronics market was valued at USD 210.25 billion in 2018 and is projected to reach a value of USD 437.74 billion by 2026, registering a CAGR of 9.6 % during the forecast period, 2019–2026.
The global automotive electronics market has been segmented by vehicle type, sales channels, and application.
On the basis of vehicle type, the automotive electronics market has been segmented into a compact passenger car, mid-sized passenger cars, premium passenger cars, luxury passenger cars, light commercial vehicle, and heavy commercial vehicles. compact passenger cars are gaining considerable traction in the global market owing to benefits offered such as affordability, easier to manoeuvre, better mileage and others. And many leading automotive vehicle manufacturers are entering into the compact passenger cars segment. For instance, In 2016, the Mahindra & Mahindra company launched the compact utility vehicle KUV100, which has been gaining significant traction in the Indian market.
In term of sales channel, the automotive electronics market has been segmented into original equipment manufacturer and aftermarkets. Original equipment manufacturers are the original producer or developer of a vehicle's parts or components and sell the product to a principal partner, who resells the product, usually directly to the public, under its own brand. Growing competition in the automotive industry is likely to drive the market.
By application, the automotive electronics market has been segmented into advance driver assistance system, safety system, entertainment, powertrain, and body electronics. There are various parts or components included in the automotive safety systems such as airbag, pedestrian, whiplash protection and others. The airbag is one of the vital components of automotive safety systems and applied in every automotive vehicle, it is likely to gain a larger market during the forecast period 2019 - 2026.
Geographically, the global automotive electronics market is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
The Asia Pacific is expected to dominate the global automotive electronics market during the forecasted period due to the booming electronic component manufacturing sectors and rising consumer awareness towards vehicle safety features in the region. Additionally, the emerging automotive industry in countries such as Taiwan, South Korea, Malaysia, and Thailand is expected to fuel the growth of the regional market further. On top of that, rapid adoption of the electric vehicle in the Asia Pacific especially in China is also likely to foster the automotive electronics market.
North America is expected to witness significant growth in the global automotive electronics market as a result of increasing demand for the electric vehicles, rapid growing adoption of the safety equipment, and increasing investments in research and development in the automobile sector for an electric vehicle and self-drive system. On September 1, 1998, Federal legislation made airbags mandatory for all the cars and light trucks sold in the United States. Based on this trend, vehicle manufacturers in North America are continually working on applying new technologies and refining their supplemental restraint systems. According to the U.S. National Highway Transportation Safety Authority (NHTSA), frontal air bags saved 44,869 lives from 1987 to 2015, and 2,756 estimated lives saved by frontal airbags in 2016.
Europe is expected to witness the high growth in the automotive electronics market during the forecast period on account of increasing acceptance of safety certification. European automotive manufacturers are producing vehicles that comply with safety standards. Moreover, most of the world’s leading automotive manufacturers such as Audi, BMW, Daimler, Porsche, and Volkswagen, as well as the world’s largest automotive suppliers such as Bosch, Continental, and ZF, are headquartered in Germany.
LAMEA is expected to witness considerable growth in the automotive electronics market during the forecasted period. This is attributed to the increasing mass vehicle production and increasing demand for a safer, efficient, and convenient driving experience during the forecasted period.
Some of the major players in the global automotive electronics market are Autoliv Inc. (Sweden), Daicel Corporation, ZF Friedrichshafen AG (TRW Automotive), Aptiv PLC (Delphi Automotive), Key Safety Systems Inc. (Takata), Tokai Rika Co. Ltd., TOYODA GOSEI Co., Ltd., Robert Bosch GmbH, Samsung Group (South Korea), Denso Corporation, and ZF Friedrichshafen AG.
Automotive Electronics Market Segmentation
By Vehicle Type
By Sales Channel