Automotive Electronics Market

Global Automotive Electronics Market:

The global automotive electronics market size reached USD 342.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 602.3 Billion by 2033, exhibiting a growth rate (CAGR) of 5.81% during 2025-2033. 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.

Global Automotive Electronics Market Analysis: 

• Major Market Drivers: The global automotive electronics market is influenced by the escalating consumer demand for advanced safety features, like collision avoidance systems and autonomous emergency braking, and the growing adoption of electric and hybrid vehicles (H/EVs).
• Key Market Trends: Trends in automotive electronics include a rising preference for connected vehicles and sophisticated infotainment telematics solutions. Additionally, the integration of advanced technologies, such as artificial intelligence (AI) and machine learning (ML), with vehicle electronic control units to enhance features, such as adaptive cruise control and driver assistance, is further propelling market expansion.
• Competitive Landscape: Some of the major market players are 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, and Denso Corporation, among others.
• Geographical Trends: According to the automotive electronics industry statistics, Asia Pacific exhibits a clear dominance, accounting for the largest automotive electronics market share. 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 like China, Japan, and South Korea, which, in turn, drives substantial demand for electronic components across vehicle types. Moreover, the rising middle class and urbanization in Asia Pacific are fueling automotive sales, further boosting the need for advanced electronics to cater to evolving consumer preferences and regulatory standards.
• Challenges and Opportunities: The automotive electronics industry analysis suggests that the necessity for efficient dissipation of generated heat is paramount as electronic components become more compact and operate at higher powers. This aspect is among the most prominent challenges for the automotive electronics market. However, the growing demand for safety features such as adaptive cruise control, lane departure warning, and automatic emergency braking is driving the adoption of sophisticated electronic components in vehicles. This, in turn, is expected to augment the automotive electronics market business opportunity over the forecasted period.
   

Global Automotive Electronics Market Trends:

Consumer Demand for Advanced Safety Features

The global automotive electronics market is driven by a robust consumer demand for advanced safety features that redefine the driving experience. As safety concerns remain paramount, automobile manufacturers are increasingly integrating cutting-edge electronics to enhance road safety. For instance, NXP Semiconductors N.V. and TSMC announced the release of NXP's S32G2 vehicle network processors and the S32R294 radar processor into volume production on TSMC's advanced 16 nanometers (nm) FinFET process technology. This marks the migration of NXP's S32 family of processors to increasingly advanced process nodes as automobiles evolve 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, nearly 54% of new car sales and 33% of the global car fleet will be electric. 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 in 2030 due to the accelerated popularization of electrified vehicles and fuel cell vehicles (FCV). 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 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 report, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on component, vehicle type, distribution channel, and application.

Breakup by Component:

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

The report has provided a detailed breakup and analysis of the market based on the component. This includes electronic control unit, sensors, current carrying devices, and others.

The increasing need for advanced vehicle functionalities is driving growth in various segments. Electronic control units (ECUs) are vital in managing functions like performance, efficiency, and safety. The rise in autonomous driving technologies has spurred demand for sensors like LiDAR, radar, and cameras, facilitating navigation and safety features. For instance, in 2021, Morris Garage launched its new SUV Gloster, which is equipped with the latest ADAS features based on predictive technology such as automatic emergency brake, automatic parking assist, blind spot detection, forward collision warning, and lane departure warning. MG, in 2021, has launched another SUV, the Astor, an affordable compact SUV with level-2 ADAS features such as Adaptive Cruise Control, Automatic Emergency Braking, Blind Spot Detection, Lane-keeping Assist, and Lane Departure Warning.

Breakup by Vehicle Type:

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

 Passenger vehicles hold the largest share in the market

A detailed breakup and analysis of the market based on the vehicle type has also been provided in the report. This includes light commercial vehicles, passenger vehicles, heavy commercial vehicles, and others. According to the report, passenger vehicles represented the largest segment.

The passenger vehicle segment's dominance in the automotive electronics market is linked 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 because of factors such as 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 dominance of the passenger vehicle segment in the automotive power electronics market. Additionally, the growing focus on safety is encouraging the inclusion of electronic systems like airbags and anti-lock braking systems, a trend further supported by strict government regulations for enhanced safety.

Breakup by Distribution Channel:

• OEM
• Aftermarket
   

OEM dominates the market

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes OEM and aftermarket. According to the report, OEM represented the largest segment.

The original equipment manufacturer (OEM) segment commands dominance in the automotive electronics market 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.

Breakup by Application:

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

Infotainment holds the largest share in the market

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes ADAS, infotainment, body electronics, safety systems, and powertrain. According to the report, infotainment represented the largest segment.

The infotainment segment's prominence in the automotive electronics market can be attributed 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 a collaboration to use Snapdragon Digital Chassis solutions to bring the most advanced digital capabilities to future Mercedes-Benz vehicles. Mercedes-Benz is using Qualcomm Cockpit Platforms to power intuitive and intelligent infotainment systems. These next-generation systems will include highly intuitive AI experiences for in-car virtual assistance. Additionally, with the progression towards autonomous vehicles, infotainment systems are also offering a means of engagement while balancing entertainment and safety.

Breakup by Region:

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

Asia Pacific exhibits a clear dominance, accounting for the largest automotive electronics market share

The report has also provided a comprehensive analysis of all the major regional markets, which include Asia Pacific, Europe, North America, the Middle East and Africa, and Latin America. According to the report, Asia Pacific represented the largest segment.

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 like China, Japan, and South Korea, which, in turn, drives substantial demand for electronic components across vehicle types. China's advancements in technology and connectivity have also played a pivotal role in its leadership position. The country has witnessed significant progress in the fields of artificial intelligence, big data analytics, and 5G infrastructure, all of which are crucial for the development 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. The partnership brings exciting developments as the company's car navigation system, "big x connect" from the big x series, now fully supports what3words. This integration empowers customers in Japan to effortlessly navigate to any precise location using just three words.

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 focuses on sustainability, key manufacturers are also investing in eco-friendly solutions like energy-efficient electronic components and materials. With the rapidly evolving customer preferences, adaptability and the ability to anticipate future trends are essential for players aiming to secure a strong position in this ever-evolving competitive realm.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• 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
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Automotive Electronics Market News:

• March 2024: Richard Electronics, a major distributor of semiconductors and electrical components, announced the expansion of Arteris' automotive solutions for Armv9 architecture CPUs. The alliance between Arteris, a system IP supplier, and Arm intends to speed up vehicle electronics innovation. 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.

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.