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Automotive Electronics Market Size, Share, Forecast 2021-2027

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A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global automotive electronics market was worth USD 205.1 billion in 2020, and is further projected to reach USD 340.4 billion by 2027, at a CAGR of 8.2% during 2021-2027 (forecast period). The market is primarily supported by the growing demand for passenger cars in developing economies owing to the increasing disposable income of consumers which is driving the revenue growth of the global automotive electronics market. Moreover, the growing adoption of advanced technologies such as advanced safety systems, alcohol ignition interlocks, emergency call systems, and others are expected to drive the growth of the market.

Government Initiative to Drive the Market Growth

Factors such as Government regulations that aim at minimizing road accidents and loss of passenger lives, coupled with the growing need for Transportation Management Systems (TMS), especially across the logistic sectors are driving the demand of the automotive electronics market. Additionally, Government policies such as Make in India, as well as factors such as emerging economies’ low labor costs, have resulted in a rise in the production of Light Commercial Vehicles (LCVs) and passenger cars. The Indian government also allows the use of certain low-frequency bands that can help automotive manufacturers to use radar-based systems for installing ADAS features in vehicles. Moreover, stringent regulations also call for the deployment of most of the electronic components during the vehicle production stage itself, thereby relating the increase in vehicle production to the growth in the automotive electronics market.

Increasing Demand for Safety and Comfort Features

Advancements in engineering and the need for safer technology features make it possible for OEMs to offer advanced features such as Automated Emergency Braking (AEB) system, airbag system, lane departure warning, and others, which have significantly decreased the number of traffic injuries worldwide. According to the United States Department of Transportation, frontal airbags saved 50,457 lives between 1987 and 2017. In addition, automotive electronics, along with the presence of broad computing technologies and connected features are enhancing automobile capabilities, thereby propelling the overall market growth. At the same time, alcohol ignition interlock, accident data recorder system, and emergency call system are also gaining traction. The incorporation of these technological advances in the automobile industry has been made possible by the rapid growth of electronic devices in newly assembled automobiles.

Sample Copy of the Report :

Infotainment Systems by Application to Hold the largest Share in Market in The Upcoming Years

There is an increased demand for in-vehicle infotainment systems in Europe and North America. An increase in efforts by governments for developing safety and security solutions, combined with increasing demand for smartphone features in cars, and technological advancements are the key driving factors to boost the in-vehicle infotainment application. Infotainment solution providers are actively participating in consolidating features, such as in-vehicle infotainment, in reducing the overall risk. NVIDIA Corporation announced the launch of the DRIVE CX platform in 2015, which can be used for infotainment in autonomous vehicles. With the launch of such technologies in the automotive industry, the overall demand is expected to expand over the forecast period.

Impact of COVID-19

The COVID-19 epidemic had a negative impact on the global automotive electronics industry. COVID-19 has hindered the growth of several industries, including the automation and transportation industry, which is an end-user of automotive electronics. The nationwide lockdown imposed by several countries across the world has not only negatively impacted the sales of automotive worldwide, but also affected the raw material manufactures, supply chain, and logistics, stifling the growth of the global automotive electronics market. Production, operation, and infrastructural development activities have also decelerated owing to the spread of coronavirus, which is further anticipated to impact the demand.

Global Automotive Electronics Market: Regional Insights

The global automotive electronics market is segmented into five regions–North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). North America followed by Europe is dominating the global automotive electronics market. This growth can be attributed to strict government rules regarding safety rules on driver and vehicle safety. The Asia-Pacific is also expected to dominate the market due to increased consumer demand and the implementation of new rules and regulations imposed by the governments of emerging economies like China, India, and Japan, which is a key factor driving growth in the Asia-Pacific region.

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