USD 244.9 Billion
Automotive Electronics Market Size, Share, and Growth Analysis
Automotive Electronics Market By Component (Electronic Control Unit (ECU), Sensors), By Vehicle Type, By Propulsion, By Sales Channel, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25A2165 |
Region:
Global |
Published Date: December, 2024
Pages:
157
|Tables:
64
|Figures:
75
Format -
Automotive Electronics Market Insights
Automotive Electronics Market size was valued at USD 244.9 Billion in 2023 and is poised to grow from USD 265.96 Billion in 2024 to USD 508.47 Billion by 2032, growing at a CAGR of 8.6% during the forecast period (2025-2032).
Integration and widespread deployment of technologically advanced features such as the airbags, parking assistance, automated emergency brake, and warning of lane drifting to reduce and prevent traffic casualties shall positively impact the demand over the forecast period. Features such as crash data recorders, ignition locks with alcohol locks, and panic buttons, in addition, are being soon deployed in safeguarding occupants of a car that is set to boost the global automotive electronics market growth over the forecast period. Rising need for electrical automobiles is stimulating automobile electronics requirements. Many customers need to transition their fuel cars into electric, a trend that leaves greater systems of electrical automobiles and even more is gradually becoming needed. It has further increased the need for electric vehicle powertrains and battery management systems.
In addition to the increasing demand for electric vehicles, government incentives, and policies have helped the growth of the automobile electronics industry as well. Technological advancements, including connected cars, autonomous cars, and vehicle powertrain electronics, have been the driving force behind the advancement of vehicle electronics. The automobile industry, which equips automotive and products with efficient and environmentally friendly solutions for vehicle electronics, is greatly dependent on the global automotive electronics market. With the rising urbanization and automobile demand, industry participants and policymakers are likely to focus even more on the automotive electronics sector.
US Automotive Electronics Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Powertrain Control Module (PCM)
Fastest Growth
Powertrain Control Module (PCM)
Growth Rate
8.6% CAGR
Global Automotive Electronic Control Unit Market 2022-2031 ($ Bn)
Country Share for North America Region- 2022 (%)
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Automotive Electronics Market Segments Analysis
Global Automotive Electronics Market is segmented by component, vehicle type, propulsion, sales channel and region. Based on component, the market is segmented into electronic control unit (ECU), sensors, current carrying devices and others. Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. Based on propulsion, the market is segmented into internal combustion engine (ICE), electric vehicles (EV) and hybrid vehicles. Based on application, the market is segmented into Advanced Driver Assistance Systems (ADAS), Body Electronics, Infotainment & Communication, Powertrain, Safety Systems. Based on sales channel, the market is segmented into OEM (original equipment manufacturer) and aftermarket. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Sales Channel
Based on the 2024 global automotive electronics market forecast, the OEM category led the market since it could provide high-quality, dependable, and long-lasting electronic components. Since these parts are necessary to the functionality, security, and general performance of contemporary automobiles, buyers typically pick OEMs to make sure they get genuine parts that fulfill strict quality standards. In addition, this decision avoids the risks involved in using substandard or even counterfeit alternatives that could compromise vehicle performance and safety. In addition, the ever-increasing technical sophistication of such advanced electronic modules further strengthens the lead of OEMs because they are better equipped to meet evolving consumer expectations.
Over the projection period, the aftermarket segment is witnessed to grow quite notably for several key reasons. These include cheap repair options to appeal to customers who want spare change left in their pockets and a general increase in automobiles' average age, which increases the need for replacement parts. The demand will also rise with the continued product improvements by aftermarket manufacturers and consumers' increasing demand for sophisticated features. Moreover, the development of internet sales channels has enhanced the availability and attractiveness of aftermarket components. As such, demand for aftermarket electronic components is predicted to grow steadily throughout the forecast period, even though the complexity of vehicle electronics continues to rise.
Analysis by Component
As per the 2024 global automotive electronics market analysis, with a 40.2% revenue share, the current carrying devices category dominated the market. These devices are critical to the automotive industry because they make it easier for electrical power and messages to be sent across a vehicle's intricate electrical system. With their critical role in supporting the various electronic components of modern automobiles, such as switches, fuses, connections, and wire harnesses, current-carrying devices are gaining increasing demand. Moreover, due to the ever-increasing dependence on complex electronics in automotive systems and the very high cost of these parts, the demand for reliable and efficient current-carrying devices has increased, hence solidifying its position as one of the major components.
The sensors segment is expected to grow at the fastest rate during the forecast period. The automobile business has seen a tremendous surge in growth since most passengers opt for cars, which are safer, more fuel-efficient, and have better connectivity. Sensors are required in most car applications such as entertainment, safety, and engine control. Furthermore, government expenditure and their activities in many countries to secure and protect their citizens also push the demand for sensors. For instance, the Ministry of Electronics and Information Technology (MeitY) launched its product called Onboard Driver Assistance and Warning System (ODAWS) in April 2022. ODAWS aims to incorporate sensors attached to vehicles to monitor the environment surrounding the vehicle and the likelihood of drivers emitting visual and audio signals for assistance.
Global Automotive Electronic Control Unit Market Size By Type, 2022 (%)
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Automotive Electronics Market Regional Insights
Asia-Pacific led the market share of more than 41.4% in 2024. Key growth drivers for Asia Pacific include the increased demand for sophisticated electronics in automobiles, increased spending capacity of customers, and growing awareness among consumers in developing countries regarding safety features. By adopting advanced manufacturing technologies, automobile companies aim to expand their production volumes. For instance, Volkswagen, General Motors, and Mercedes Benz relocated their manufacturing plants to developing countries. Furthermore, leading semiconductor companies are headquartered in Asia Pacific. Asia Pacific is the leading geographical region for the easy availability of power electronics devices and components.
From 2025 to 2032, the North American automotive electronics industry is expected to grow at a tremendous pace. Numerous automotive electronics companies in the region are implementing collaboration and cooperation strategies in an attempt to expand their demographic reach. For instance, in January 2023, a U.S. automotive electronics supplier said it entered a technical partnership with Qualcomm, a semiconductor and software company, to develop an advanced vehicle cockpit domain controller that would enable next-generation cockpits for automotive companies. This collaboration is helping the automobile industry to transform into a more advanced, personalized car experience through the businesses.
Global Automotive Electronic Control Unit Market By Geography, 2022-2031
- Largest
- Fastest
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Automotive Electronics Market Dynamics
Automotive Electronics Market Driver
Growing Interest in Cutting-Edge Car Features
- Automotive electronics are growing due to the increasing demand of customers for advanced technologies such as electric drivetrains, autonomous driving, and better infotainment systems. The market for automotive electronics is growing due to these developments, which require sophisticated electronic components. The market is expanding due to the increasing demand for sophisticated vehicle electronics as manufacturers try to meet customer expectations for greater technological integration.
Transition to Electric Cars (EVs)
- The global automotive electronics market is heavily influenced by the shift toward electric cars, or EVs. To efficiently manage power, charge the battery, regenerate energy, and regulate temperature, EVs mainly depend on complex electronics. The market is expected to grow due to the increasing demand for specific automotive electronic components, such as power control modules, battery management systems, and electronic control units, that have been brought about by the more rapid adoption of EVs.
Automotive Electronics Market Restraints
High Cost of Automobile Electronics
The introduction of advanced technology and the increasing complexity of automobile electronic components raise the cost of production. Advanced automobile electronics may be unaffordable for customers in developing countries, mainly because of their high cost. Furthermore, manufacturers find it challenging to achieve a balance between innovation and cost-effectiveness, which limits the wide application of advanced electronic components in automobiles.
Problems in Integrating Technology
- Advanced electronics integration in automotive systems is fraught with difficulties, especially regarding security, dependability, and compatibility. It requires much testing and development to ensure smooth communication among the distinct electrical parts of the intricate ecology of the vehicle. These challenges may dampen the growth of the market by delaying product development and increasing the total cost of automotive electronics.
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Automotive Electronics Market Competitive Landscape
It is characterized by both well-established firms and newer companies that determine the competitive landscape of the automotive electronics sector. In this sector, major manufacturers include Bosch, Denso Corporation, Continental AG, and Valeo, with portfolios encompassing some of the most cutting-edge automotive electronic components in the industry, such as infotainment systems, control units, and sensors. These companies will invest significantly in R&D to become competitive. Since electric and driverless cars have become more popular these days, several new companies appear on the markets that focus their activities on connecting solutions, AI technology, or electric car components.
Top Players in Automotive Electronics Market
- Robert Bosch GmbH
- Continental AG
- Denso Corporation
- Aptiv PLC
- ZF Friedrichshafen AG
- Hyundai Mobis
- Magna International Inc.
- Autoliv Inc.
- Panasonic Corporation
- Sony Corporation
- Infineon Technologies AG
- NXP Semiconductors
- Texas Instruments Inc.
- Valeo SA
- Harman International Industries, Inc.
- HELLA GmbH & Co. KGaA
- Mitsubishi Electric Corporation
- Hitachi Automotive Systems, Ltd.
- Visteon Corporation
- Lear Corporation
Automotive Electronics Market Recent Developments
- ZF Friedrichshafen AG made public the Smart Camera 6, a leading-edge camera for safety and autonomous driving, in January 2023. The main objective of the Smart Camera 6 is to meet the demand for interior monitoring systems and 3D surround view, which is aided by image processing module systems.
- Xilinx, Inc. entered partnership with Motovis, a leading provider of embedded AI autonomous driving in January 2023. This integration aims to deliver an integrated solution, which utilizes Zynq SoC with CNN IP provided by Motovis in vehicle control and perception by the forward camera system in the automotive industry. Its purpose is to enrich its customers with high-powered platforms and fast development.
- Hitachi Automotive Systems, Ltd. unveiled a multi-camera 3D sensing prototype and 360-degree stereo vision system for driverless cars on the road in October 2022. The prototype is part of an in-car camera system that fits into one system, providing great resolution, cost-effectiveness, and accuracy.
Automotive Electronics Key Market Trends
- Increasing Interest in Autonomous Driving Technologies: Autonomous driving technologies are one of the major developments that influence the market. Tremendous progress occurs in the integration of sensors, cameras, radar, and LiDAR systems into automobiles and requires specialized electronics to handle enormous volumes of data in real time. The automotive industry is being driven by the increasing need for dependable and high-performing car electronics with the engagement of manufacturers into the development of autonomous vehicles.
- Using Connected Vehicle Technologies: One of the key global automotive electronics market trends is the connected automobile. This is supported by the further development of IoT technology. A connected automobile communicates in real-time with external networks, thus offering advanced navigation systems, over-the-air software upgrades, and remote diagnostics. The current trend is induced by the high demand for car electronics and communication systems as users seek more comfort and safety.
Automotive Electronics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global automotive electronics market is predicted to grow manifold with the growing demand for cutting-edge car features, the shift to electric cars (EVs), and the development of autonomous driving technology. Automobile electronics will remain an integral part of the development of the automobile sector as customers look for improved entertainment, safety, and connection choices. Although such costs and integration challenges would still exist, it is expected that other innovations and strategic spending by key players would work to overcome the same. Competition in the market is still stiff as both well-established businesses and new firms try to meet the increasing demand for reliable, high-performance, and reasonably priced automotive electronics. Due to consumer-led trends and technological advancements, the sector is optimistic.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 244.9 Billion |
| Market size value in 2032 | USD 508.47 Billion |
| Growth Rate | 8.6% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Electronics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Electronics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Electronics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Electronics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Electronics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Electronics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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