A new report published by Allied Market Research, titled, "Automotive Electronics Market by Vehicle Type, Component, Application, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019–2026," projects that the global automotive electronics market size is estimated to reach $382.16 billion by 2026. In 2019, Asia-Pacific dominated the market, contributing a major share of the overall revenue, followed by Europe. Emerging advancements of IoT and AI, rapid adoption of automated features in automobiles and demand for in-vehicle safety features fuels the growth of the global automotive electronics market.
Automotive Electronics industry deals in equipping vehicles with digital and automatic controls. Factors such as adoption of IoT and AI in the automobiles, vehicles equipped with automated driving, the demand of in-vehicle safety features, increase in demand of infotainment features drive the market of automotive electronics. On the other hand, low adoption of automotive electronics in newly industrialized countries and increase in overall cost of end-product due to integration of automotive electronics hampers the market growth. Further, the investment towards autonomous driving of vehicles in smart grids is expected to provide lucrative opportunities in the automotive electronics market share.
Over the period automobile industry has witnessed automation in multiple functionalities such as power windows, camera parking assistance, integrated digital cockpit and such other features. The penetration of ADAS in economical range of cars drives the market. In addition, rise in competition in the automotive market manufacturers offer infotainment features in the economical range of cars. Thus, a greater number of cars getting equipped with infotainment electronics increases the market of automotive electronics. Further, the advancement of IoT and AI has promoted penetration of the infotainment electronics in automobiles driving the automotive electronics market share globally.
The passenger car segment was the highest contributor to the automotive electronics market growth in 2019, whereas, HCV experienced fastest growth with a CAGR of 9.0% during the forecast period. The innovation and standardization in the aftermarket products are the factors for its fast growth in future.
As per automotive electronics market trends, Asia-Pacific was the major revenue generator in 2019 and is expected to maintain its dominance in the future. This is attributed to the rise in industrial sector and its automation which is expected to drive the automotive electronics market growth globally.
According to automotive electronics market analysis, Asia-Pacific is projected to experience rapid growth throughout the analysis period, China witnessed the highest demand for level sensors, due to wide presence of semiconductor companies in the country and stringent government regulations associated with level sensors. Moreover, enhancement in industrial autonomy and increase in expenditure in the emerging markets such as Latin America and the Middle East to meet demand for exponentially growing economies in these countries have strengthened the market growth. Furthermore, technological advancements for cost-effective and high precision applications in these nations offer lucrative automotive electronics market opportunity.
The automotive electronics market size is segmented on the basis of vehicle type, component, application, distribution channel, and region. By vehicle type, it is categorized as passenger cars, LCVs and HCVs. On the basis of component, it is categorized into sensors, actuators, processors, microcontrollers, and others. The application segment is divided into ADAS, infotainment, body electronics, safety system and power train and such other applications. Distribution channel in the automotive electronics market is segmented as OEM and aftermarket.
Key Findings of the Study:
- By vehicle type, the passenger car segment accounted for the highest share of the automotive electronics market forecast in 2019 with $87.39 billion, growing at a CAGR of 5.6% from 2019 to 2026.
- On the basis of component, the microcontrollers segment generated the highest revenue, accounting for $63.44 billion in 2019.
- By region, Asia-Pacific is expected to dominate the market, garnering 8.2% share during the forecast period.
The report provides a comprehensive analysis of the major market players such as ABB Ltd., AMETEK Inc., Emerson Electric Co., Endress+Hauser Management AG, Honeywell International Inc., Siemens AG, Taiwan Semiconductor Manufacturing Company Limited, TE Connectivity, Texas Instruments, and Vega Grieshaber Kg. Key players operating in the global automotive electronics market are Robert Bosch, Renesas Electronics Corporation, Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments, NXP Semiconductors N.V., Continental AG, NVIDIA Corporation, Hitachi Ltd., and Aptiv PLC.
The companies follow various market strategies such as product launch, product development, collaboration, partnership, and others that leads to the market growth. Nvidia launched a simulator that leverages cloud computing power to test autonomous vehicles. The software can simulate glare at sunset, snowstorms, poor road surfaces, and dangerous situations to test the vehicle's ability to react.