Automotive Electronics Market

Automotive Electronics Market Size and Share:

The global automotive electronics market size was valued at USD 342.55 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 602.28 Billion by 2033, exhibiting a CAGR of 5.81% during 2025-2033. Asia Pacific currently dominates the market, holding a significant market share of over 41.7% in 2024. The escalating demand for advanced safety features in automobiles, the transition to electric and hybrid vehicles, and the proliferation of connected vehicles and the Internet of Things (IoT) are primarily driving the market growth.

The global market is driven by the growing demand for advanced driver assistance systems (ADAS) and electric vehicles (EVs). Technological advancements in automation, connectivity, and infotainment, along with consumer demand for safety, convenience, and in-car entertainment, are driving the integration of advanced electronics in vehicles. On 25^th April 2024, Mercedes-Benz partnered with Tencent and Electronic Arts to bring the Need for Speed™: Assemble video game series to its vehicles in China by the end of 2024. Powered by the MBUX third-generation operating system, the game will be accessible via an over-the-air update, with players able to use Bluetooth controllers when the car is stationary. The collaboration marks a significant step in the future of in-car entertainment, with plans for expansion to other markets. Additionally, the growing focus on sustainability and fuel efficiency drives adoption of electric and hybrid vehicles, reliant on automotive electronics. Autonomous driving technologies and government incentives for reducing carbon emissions further stimulate innovation in electronic components, fueling market expansion.

The United States stands out as a key regional market, primarily driven by the increasing adoption of smart and connected vehicles among the masses. The increasing consumer demand for enhanced vehicle performance, safety, and entertainment is fueling the integration of advanced electronic systems such as infotainment, navigation, and advanced lighting technologies. Concurrently, the emerging trend of electric vehicles (EVs) and hybrid models is enhancing the need for efficient power management systems and battery monitoring technologies, which is creating a positive market outlook. In addition, the growing focus on reducing road accidents and enhancing driver safety further supports the adoption of advanced driver assistance systems (ADAS). According to the U.S. Department of Transportation, roadway fatalities peaked in 2021 at 43,230, including 7,388 pedestrian deaths, the highest since 2005. Fatalities decreased to 42,514 in 2022 and an estimated 40,990 in 2023, with improvements continuing into 2024, signaling progress after years of rising numbers. Moreover, stringent government regulations concerning fuel efficiency and vehicle emissions are pushing manufacturers to innovate with more sophisticated electronics, driving automotive electronics market share in the region.

Automotive Electronics Market Trends:

Consumer Demand for Advanced Safety Features

The increasing demand for advanced safety features that augment the driving experience is driving the global automotive electronics market. As safety concerns remain paramount, automobile manufacturers are increasingly integrating cutting-edge electronics to enhance road safety. For example, NXP Semiconductors N.V. and TSMC announced their volume production release of NXP's S32G2 vehicle network processors as well as the S32R294 radar processor on the advanced 16 nanometers FinFET process technology provided by TSMC. This will mark the migration of NXP's S32 family of processors to increasingly more advanced process nodes as automobiles migrate into powerful computing platforms. Similarly, Infineon Technologies launched new packages for its 80 V and 100 V MOSFETs with OptiMOS 5 technology to meet the different requirements of different 48 V applications. Furthermore, the increasing incorporation of collision avoidance systems and autonomous emergency braking to detect potential collisions and autonomously engage braking mechanisms is creating a positive outlook for the overall market.

Rise of Electric and Hybrid Vehicles

The shift towards electric and hybrid vehicles is a substantial driver of the global automotive electronics market. With the global push for sustainable transportation, automakers are transitioning from internal combustion engines to electric powertrains. The demand for electric vehicles is growing rapidly across the world, and this is expected to augment the application of electronic control units (ECUs) in these vehicles. In addition to this, government authorities across the world are taking initiatives, such as providing subsidies and incentives, to promote the production and adoption of EVs. By 2040, about 54% of new car sales and 33% of the international car fleet will be electric, according to an industry report. Moreover, in July 2021, Fuji Chimera Research Institute Inc. surveyed the global automotive electronic control unit (ECU) market and announced that it would expand 75% from 2019 to JPY 15.58 Trillion (USD 0.099 Trillion) in 2030 due to the increasing pace of the adoption of fuel cell vehicles (FCV) and electric cars. This, in turn, is anticipated to propel the automotive electronics Industry revenue in the coming years.

Proliferation of Connected Vehicles and IoT

The proliferation of connected vehicles and Internet of Things (IoT) is one of the major drivers bolstering the growth of the automotive electronics market. Manufacturers are introducing vehicles with advanced features that enhance the driver experience and convenience. Furthermore, various key market players are collaborating with technology giants to seamlessly integrate advanced technologies into vehicles. For instance, in May 2022, STMicroelectronics collaborated with Microsoft to streamline the development of highly secure IoT devices. Similarly, in June 2022, PATEO Corporation and Qualcomm Technologies, Inc. (Qualcomm) expanded their relationship to develop solutions to support vehicle intelligence, smart car connectivity, service-oriented architecture (SOA), intelligent cockpits, and multi-domain fusion based on central controllers.

Automotive Electronics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global automotive electronics market, along with forecast at the global and regional levels from 2025-2033. The market has been categorized based on component, vehicle type, distribution channel, and application.

Analysis by Component:

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

ECUs are critical for managing vehicle functions, including engine control, safety systems, and entertainment features, enhancing vehicle performance. Electronic control units (ECUs) are vital in managing functions such as performance, efficiency, and safety. The rise in autonomous driving technologies has influenced demand for sensors including LiDAR, radar, and cameras, facilitating navigation and safety features. Some of the examples include the recently launched SUV Gloster 2021 by Morris Garage, which is equipped with the latest ADAS-based features on predictive technology with automatic emergency brakes, auto parking assist, blind-spot detection, forward collision warnings, and lane departure warning, amongst others. The Mumbai-based company, MG, in 2021 introduced another SUV, the Astor, which is also an affordable compact SUV level-2 ADAS featured-vehicle with adaptive cruise control, automatic emergency braking, blind spot detection, lane-keeping assist, and lane departure warning.

Sensors in automotive electronics play a crucial role in vehicle automation, which enable features such as collision avoidance, adaptive cruise control, and lane-keeping assistance. These components also facilitate real-time data collection for diagnostics and predictive maintenance, enhancing the vehicle's longevity and reliability. With advancements in technology, sensors are now equipped with higher sensitivity and faster response times, contributing to better fuel efficiency and reduced emissions. Furthermore, the integration of IoT has amplified sensor capabilities, enabling seamless communication with other automotive systems.

Current carrying devices are integral to the seamless operation of advanced driver-assistance systems (ADAS) and infotainment systems. These components are designed to handle varying voltage levels, supporting both high-performance and energy-efficient applications in electric and hybrid vehicles. The trend towards miniaturization has led to the development of compact and lightweight wires and connectors, which improve overall vehicle efficiency. Additionally, advancements in materials, such as high-conductivity alloys, are enhancing the durability and performance of these devices, reducing the risk of system failures.

Analysis by Vehicle Type:

• Light Commercial Vehicles
• Passenger Vehicles
• Heavy Commercial Vehicles
• Others
   

 Passenger vehicles lead the in 2024 due to rising global population and urbanization, increasing the need for personal mobility and, consequently, passenger vehicles. For the past 5 or 10 years, passenger vehicles have been installed with various safety, comfort, entertainment, and vehicle management features. This is due to factors such as the changing preferences of vehicle buyers supported by government legislation aimed at enhancing vehicle safety. Individuals' desire for comfort, convenience, and connectivity is resulting in the integration of advanced electronics. Moreover, OEMs, Tier I, and Tier II are also trying to deploy new technologies or features in the mass-produced vehicle category, i.e., passenger vehicles, which is responsible for the market for automotive power electronics is dominated by the passenger car sector. Additionally, the growing focus on safety is encouraging the inclusion of electronic systems including airbags and anti-lock braking systems, a trend further supported by strict government regulations for enhanced safety.

Analysis by Distribution Channel:

• OEM
• Aftermarket
   

OEM leads the market in 2024 as it possesses a distinct advantage in integrating electronics seamlessly during the vehicle manufacturing process. Moreover, OEMs and technological giants are entering partnerships to offer connected car features in their new respective models, which will continue to drive the demand for highly advanced automotive electronics. For instance, Ford Motors and Google signed a strategic partnership for the development of connected car service applications. This partnership is helping Ford Motors enhance its connected vehicle business. Besides this, stringent safety and emission regulations necessitate sophisticated electronics to comply with standards. OEMs are integrating these technologies directly into their vehicles, ensuring compliance from the outset. Furthermore, OEMs maintain strong relationships with component suppliers, facilitating access to cutting-edge technologies and enabling efficient procurement.

Analysis by Application:

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

Infotainment leads the market in 2024 due to the changing consumer preferences that demand a seamless blend of entertainment, connectivity, and navigation in vehicles. Moreover, various automotive manufacturers and technology providers are collaborating to produce vehicles with robust infotainment systems. For instance, Toyota and Google Cloud expanded their partnership to include Toyota and Lexus's next-generation audio multimedia systems as well as Google Cloud's AI-based speech services. Similarly, Mercedes-Benz AG and Qualcomm Technologies, Inc. announced they are joining forces to tap Snapdragon Digital Chassis solutions to enable the most advanced digital capabilities for future Mercedes-Benz vehicles. Mercedes-Benz is powering intuitive and intelligent infotainment systems on Qualcomm Cockpit Platforms with next-generation systems featuring highly intuitive AI experiences for in-car virtual assistance. Additionally, with the progression toward autonomous vehicles, infotainment systems are also offering a means of engagement while balancing entertainment and safety.

Analysis by Region:

• North America
• Asia-Pacific
• Europe
• Latin America
• Middle East and Africa
   

In 2024, Asia Pacific accounted for the largest market share of over 41.7%. The dominance of the Asia Pacific region in the automotive electronics market can be attributed to the region's robust automotive manufacturing base, led by countries such as China, Japan, and South Korea, which, in turn, drives substantial demand for electronic components across vehicle types. China's improvements in technology and connectivity have also played a crucial role in its leadership position. The nation has seen substantial progress in the fields of artificial intelligence (AI), big data analytics, and 5G infrastructure, all of which are important for the improvement of advanced navigation systems. Additionally, supportive government policies and investments in research and development are also contributing to technological innovations, solidifying Asia Pacific's position as a global hub for automotive electronics. In line with this, collaborations between regional automotive giants and global technology firms to facilitate knowledge transfer and drive continuous advancements in automotive electronics are also resulting in region's dominance in the market. For instance, What3Words announced a new collaboration with Alpine Marketing Co., Ltd., a leading developer, manufacturer, and distributor of electronic components and car electronics-related products. Exciting new advancements result from the relationship, including the complete support of what3words for the company's automobile navigation system, "big x connect" from the big x series. With just three phrases and this connection, clients in Japan may easily browse to any specific place.

Key Regional Takeaways:

United States Automotive Electronics Market Analysis

The US automotive electronics market is increasing due to the increasing technological advancements, strategic partnerships, and the rapidly growing adoption of electric vehicles. A few automotive electronics companies in the region are using collaboration and innovation as expansion tools for their market presence. In January 2023, one of the largest automotive electronics providers signed a technology partnership with one of the world's biggest semiconductor and software companies. The controllers are there to update cockpits inside these vehicles. These advanced cockpit designs have been crafted for intelligent, personalized driving experiences that make the future of the automobile business.

One more key growth driver in this market is the fast rise of electric vehicles. According to an industrial report, sales of new light-duty chargeable EVs in the U.S. have increased from 308,000 in 2020 to 608,000 in 2021, with more than 73% of that number accounting for battery electric vehicles. Increased adoption of electric vehicles has fueled the demand for highly advanced automotive electronics, including battery management systems, infotainment technologies, and improved safety features, making the United States a key marketplace for automotive electronics innovation and expansion.

Europe Automotive Electronics Market Analysis

The Europe automotive electronics market is expected to be highly growth-oriented due to the increasing demand for electric vehicles and increased production of automobiles. ACEA estimates that in Europe, BEV and PHEV sales rose from 559.81 thousand units sold during Q2 2022 to 757.83 thousand units in Q3 2023. As EV sales rise, there is substantial business opportunities available to the automotive electronics industry due to their high requirement for electronic devices, mainly due to advanced electronic components in terms of power management of the vehicles.

Apart from the increased production in Europe, more automotive electronics demand is triggered by such growth. According to OICA statistics in 2023, an approximate number of 1.5 Million motor vehicles produced in France reported 68.2% as being passenger cars. This increase in production, which has seen a total of 1.3 Million cars produced in 2022, reflects the increasingly increasing need for electronics in modern vehicles, such as infotainment systems, safety features, and battery management technologies-all these becoming more important to the automotive landscape.

Asia Pacific Automotive Electronics Market Analysis

The Asia Pacific automotive electronics market is growing at a tremendous rate, driven by advancements in vehicle technology and strong government support for electric vehicle (EV) adoption. In March 2023, Hyundai Motor India announced the launch of Hyundai Verna equipped with a level 2 ADAS system. The automobile comes with over 65 advanced safety features, such as radar-powered automated sensing technology, cameras, and sensors to identify obstacles and suggest corrective actions. This is also driving the demand for automotive electronics in the region due to its shift toward advanced driver assistance systems and safety features.

Moreover, government policies within Asia Pacific are pushing it further to grow. The country of Japan has set a goal wherein EVs will comprise 50% of new car sales by 2030; they offer tax incentives and subsidies and have various forms of regulatory measures that propel the adoption of EVs. South Korea, India, China, and Japan host some of the most massive automotive markets around the world, where the boom in disposable incomes, increased urbanization, and development in infrastructure are driving demand for advanced automotive electronics.

Latin America Automotive Electronics Market Analysis

The Latin America automotive electronics market is growing rapidly. It is due to the considerable rise in vehicle production across the region. According to the Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA), the production of vehicles in Brazil, excluding CKD production, totalled 259,613 units in August 2024, 14.4% higher than August 2023. The increase in production is indicative of the increased demand for automotive electronics in Latin America, since modern vehicles are increasingly dependent on advanced electronic systems for improved performance, safety, and connectivity.

It has mainly been driven by increased demand from consumers, higher disposable incomes, and the increasing development of the automotive market in important Latin American countries. Automakers in the region will keep including ADAS, infotainment systems, and electric powertrains in the vehicle. All these have made the requirement for automotive electronics more likely to grow. This growth creates profitable opportunities for suppliers of automotive electronic components, especially in Brazil, one of the largest automotive markets in the region.

Middle East and Africa Automotive Electronics Market Analysis

The automotive electronics market in the Middle East and Africa is highly growing due to the rising adoption of HEVs and EVs. For example, the adoption of electric vehicles rose to 4% in 2023 in the United Arab Emirates, while it was only 2% in 2022, which reflects a growing demand for green transportation, as per an industry report. This growth is further getting an enhancement by the efforts made by governments to build strong EV infrastructure. Such examples would include Saudi Arabia's investment, in 2022, of USD 6 Billion to improve mineral mining with great potential in electric vehicle batteries and to also drive an electric vehicle supply chain.

In another event, in May 2022, Abu Dhabi rolled out the regulatory policy on EV charging infrastructure, laying down requirements and procedures to have ownership, installation, and management of charging stations. With further developments through such policies and investments from the government, there will be increased demand for automotive electronics and related components including battery management systems, infotainment systems, and electric powertrains across the Middle East and Africa.

Competitive Landscape:

The competitive landscape of the automotive electronics market is characterized by dynamic interactions driven by technological advancements and market trends. Collaboration between automotive manufacturers and electronics suppliers is a common strategy to ensure seamless integration of electronic systems. New entrants often focus on niche areas, contributing to market diversification. As the industry remains sustainable, key manufacturers have also invested in eco-friendly solutions, such as energy-efficient electronic components and materials. Adaptability and a future trend-anticipating ability are essential in players who aim to make a strong position in the highly changing competitive realm in terms of customer preferences.

The report provides a comprehensive analysis of the competitive landscape in the automotive electronics market with detailed profiles of all major companies, including:

• Omron Corporation
• Robert Bosch GmbH
• Infineon Technologies AG
• HGM Automotive Electronics
• Hitachi, Ltd.
• Delta Electronics, Inc.
• Atotech Deutschland GmbH
• TRW Automotive
• Continental AG
• Bosch Group
• Altera Corporation
• Lear Corporation
• Aptiv
• Texas Instruments
• Atmel Corporation
• Denso Corporation

Latest News and Developments:

• March 2024: Richard Electronics, a major distributor of semiconductors and electrical components, announced the expansion of Arteris' automotive solutions for Armv9 architecture CPUs. The partnership between Arm and Arteris, a provider of system intellectual property, aims to accelerate the development of automotive electronics. This collaboration will facilitate speedier development in the automotive industry by addressing the design problems of next-generation vehicle electronics.
• October 2023: Samsung Electronics, a world leader in advanced semiconductor technology, hosted Samsung Foundry Forum (SFF) and unveiled its advanced and wide-ranging automotive process solutions, from the most advanced 2-nanometer process to the 8-inch legacy process. 
• March 2023: Infineon Technologies AG deepened its collaboration with Delta Electronics, an energy and power management organization, to expand its innovation activities in the increasing electric vehicle market. The collaboration will concentrate on more efficient and higher-density solutions for various applications of EV drivetrain onboard chargers, DC-DC converters, and traction inverters. The cooperation will also cover a wide range of components, such as low-voltage and high-voltage microcontrollers, discrete components, and modules.

Automotive Electronics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the automotive electronics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global automotive electronics market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive electronics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.