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Industry Insights, Market Size, CAGR, High-Level Analysis: Automotive Electronics Market The global automotive electronics market size was estimated at USD 248.84 billion in 2019 and expand at a CAGR of 9.0% over the forecast period. Increasing integration and adoption of advanced safety systems such as automatic emergency braking, lane departure warning, and airbags to reduce road accidents, is anticipated to fuel the growth. Additionally, rising demand for luxury and hybrid vehicles is expected to significantly boost the growth. Growing consumer preference for vehicles integrated with Advanced Driver-Assisted Systems (ADAS), such as Adaptive Cruise Control (ACC), park assist, and blind-spot detection, has been propelling the market growth. The increasing automotive production directly influences the volume as well as revenue sales of electronic components, as over 90% of automotive electronic components are integrated during the vehicle production stage. Over the past five years, the automotive industry has witnessed an average growth of over 3% owing to the increasing disposable incomes especially in the emerging economies and growing demand for shared mobility services. Rapid rise in innovation in software-based systems is anticipated to trigger the demand for advanced electronic components. This growth can be attributed to the need for continuous software upgrades in advanced safety systems and V2X systems for proper vehicle functionality. Rising investments in R&D activities to develop high-performance products along with increasing focus on energy storage technology is expected to further fuel the market. The regulations primarily focus on the reduction of fuel consumption for passenger cars while simultaneously maximizing the sale of new energy vehicles, including plug-in hybrid and fully electric vehicles.Hybrid electric vehicles are driven by multiple power sources that reduce the consumption of fuel and concurrently gives the consumer a positive, smooth, and quiet driving experience. Besides, the modern Electric Vehicles (EVs) are integrated with around 80 Electronic Control Units (ECUs) per vehicle. Thus, increasing penetration of EVs and HEVs is expected to boost the market demand over the forecast period. Moreover, technological advancements related to in-vehicle safety, and government regulations to reduce road fatalities are increasing the demand for advanced safety systems. Over the next decade, technologies such as Machine Learning (ML), Augmented Reality (AR), and Artificial Intelligence (AI) are anticipated to transform the driving experience completely. The AR dashboard has already been implemented in some vehicles such as some of the BMW models. As per the surveys, almost 70% of luxury cars would be integrated with AR dashboards to enhance the Human-Machine Interface (HMI) by 2020. Moreover, investments in the development of these technologies for improved vehicle performance are predicted to boost the market growth. Manufacturers, such as Robert Bosch GmbH, ZF Friedrichshafen AG, and Denso Corporation, utilize raw materials, including resin, copper, and aluminum, to manufacture components such as instrument clusters, ECUs, electronic switches, immobilizers, and body control modules. Thus, any changes in the cost of raw materials directly affects the cost of the final components, thus changing the overall vehicle cost or profit margin of the Original Equipment Manufacturers (OEMs). Thus, fluctuation in the price of raw materials may hamper the growth of the automotive electronics market. Moreover, intensification in design complexity is also expected to restrain the growth over the forecast period. Component Insights of Automotive Electronics Market The current carrying devices segment accounted for over 40% of market share in 2019, owing to the high cost of components such as wiring harness, and connectors. Moreover, government initiatives, such as Make in India and factors, like prevailing low labor costs and rising disposable income in emerging economies have led to an increase in the production of Light Commercial Vehicles (LCVs) and passenger cars. Hence, it is estimated to increase the overall vehicle production, thereby fueling the segment growth. However, the sensors segment is projected to expand at the highest CAGR of 10.3% over the forecast period. The number of sensors deployed per vehicle has increased significantly over the past decade, owing to the growing consumer demand for comfort, convenience, and security. Besides, favorable government regulations on emission standards have also triggered the demand for sensors such as IR sensor, and O2 sensor. Moreover, the positive shift toward the adoption of self-driving cars could significantly drive the demand for sensors. Application Insights of Automotive Electronics Market Safety Systems dominated the application segment and accounted for 25.5% share of the overall revenue in 2019. Government regulations that aim to minimize road accidents and loss of passenger lives, coupled with the growing need for Transportation Management Systems (TMS), especially across the logistic sectors are some of the key factors driving the segment growth. For instance, the European Transport Safety Council (ETSC) has invested in a road safety program that aims to lower the number of casualties caused by road accidents by 50% by 2020. Such initiatives are anticipated to further fuel the growth of the segment in the forthcoming years. ADAS segment is estimated to expand at the highest CAGR of 11.8% over the forecast period owing to the several steps taken by the governments to enhance the safety and security of drivers as well as vehicles. For instance, the New Car Assessment Programme (NCAP) in Europe and China has been mandating the use Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) systems for the large-scale adoption of active safety systems. Also, companies such as Continental AG, along with OEMs, are focused on offering low-cost ADAS for the medium-sized and compact car segments.The company introduced affordable ADAS systems, including traffic sign recognition, lane departure warning system, and driver monitoring systems, among others. Such factors are anticipated to drive the adoption of ADAS in economy-range vehicles, fueling the segment growth. Sales Channel Insights OEMs comprise vehicle manufacturers, such as BMW Motorrad, General Motors, and Volkswagen AG. The OEM segment held the dominant market share in 2019, as most of the electronic components are integrated during the vehicle manufacturing stage. Since the electronic components offered by the OEMs are highly durable, the segment is estimated to expand at a significant CAGR over the forecast period. Aftermarket is the secondary market concerned with the distribution, manufacturing, installation, and retailing of all vehicle accessories and parts after the automobile sales. The aftermarket segment is anticipated to expand at a minimal CAGR over the forecast period owing to the increasing complexity of electronic components. Therefore, to avoid any casualties, most of electronic components are integrated during vehicle production stage, owing to the need for stringent safety regulations and quality tests. Moreover, rise in the number of vehicle recalls over the last four years, has increased the company’s focus on quality checks, affecting the segment growth. Regional Insights of Automotive Electronics Market Asia Pacific market for automotive electronics held a dominant revenue share and was valued at USD 101.74 billion in 2019. China accounted for around 29.0% of global motor production in the same year. The country was the leader in passenger car production and sales with 23.5 million and 23.7 million respectively, in 2018. Most of the regional demand is fulfilled from Japan and China. Though, the limited number of manufacturers creates significant investment opportunities for regional suppliers to capitalize on the local demand, thus making the ASEAN countries an attractive place for investors. North America is projected to expand at the second-highest CAGR of 9.2% over the forecast period. U.S. anticipated to dominate the regional market owing to the presence of key manufacturers, such as Continental AG; ZF Friedrichshafen AG; Autoliv, Inc.; and Robert Bosch GmbH. Also, U.S. holds over 80.0% share of the North America motor vehicle production. Besides, the regional governments have introduced several initiatives to improve passenger safety and simultaneously reduce the risk of accidents. For instance, in 2017, the Government of Canada’s transport controlling body mandated the incorporation of electronic stability control and electronic logging devices for commercial buses and trucks. Market Share Insights of Automotive Electronics Market The market is moderately consolidated in nature, despite the availability of large number of players manufacturing different electronic components such as wiring harness, ECUs, and sensors, among others. This is owing to the presence of well-established players, such as Continental AG, Denso Corporation, Aptiv PLC, Robert Bosch GmbH that hold a dominant market share. These players have the capability to deliver high-volume of components without compromising on the quality and leverage their extensive product portfolio along with their existing contracts with the OEMs. The other players operating in the market include Altera (Intel Corporation); Broadcom Ltd.; HELLA GmbH & Co. KGaA (HELLA); Infineon Technologies AG; Hitachi Automotive Systems, Ltd.; Microchip Technology, Inc.; Panasonic Corporation; NXP Semiconductors N.V.; Texas Instruments Incorporated; and Valeo Inc. The companies are also focused on strategic expansions, partnerships, and acquisitions to strengthen their market position. For instance, in February 2019, Continental AG announced the acquisition of Kathrein Automotive GmbH to increase its expertise in the field of connectivity. The acquisition was aimed at expanding its connectivity product portfolio. Kathrein Automotive GmbH would manufacture intelligent vehicle antenna for future-proof connectivity for the former. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Automotive Electronics Market Research Report This report forecasts revenue growth at global, regional, and country levels and analyzes industry trends in each of the sub-segments from 2019 to 2030. For this study, this market research report has segmented the global automotive electronics market based on component, application, sales channel, and region: Component Outlook (Revenue, USD Million, 2019 - 2030) Electronic Control Unit Sensors Current Carrying Devices Others Application Outlook (Revenue, USD Million, 2019 - 2030) ADAS Infotainment Body Electronics Safety Systems Powertrain Electronics Sales Channel Outlook (Revenue, USD Million, 2019 - 2030) OEM Aftermarket
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation & Scope 1.2 Market Definition 1.3 Information Procurement 1.4 Purchased Database 1.4.1 GVR’S Internal Database 1.5 Research Methodology 1.6 Research Scope & Assumptions 1.7 Region/Country Wise Market Calculation 1.7.1 Region /Country Wise Market: Base Estimates 1.7.2 Region/Country Market: Cagr Calculation 1.7. | read more...