Automotive Electronics Market Size, Share, Sector / Industry Report & Analysis 2020, & Forecast 2021-2026 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive Electronics Market


The global Automotive Electronics market size is projected to reach US$ 448.84 billion by 2026, from US$ 272.09 billion in 2020, at a CAGR of 8.7% during 2021-2026. Growing adoption and integration of advanced safety-systems, such as airbags, Automatic Emergency Braking (AEB), and Lane Departure Warning (LDW), are expected to spur the demand for automotive electronics in the next few years. Features, such as accident data recorder systems, alcohol ignition interlocks, and emergency call systems, are also gaining traction and are expected to upkeep the market growth over the forecast period.

OEMs are investing heavily in R&D to develop high-performance products at reasonable cost and are focusing more on energy storage technology. Moreover, the current class of manufacturers have become more reliant on electronics, enabling them to provide high level of safety. In 2010, electronics accounted for around 35% of the total vehicle cost. However, over the next two decades and with the ongoing technological advances, automotive electronics is expected to account for around 50% of the total vehicle cost.

Increasing penetration of Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) is also expected to boost the product demand as it helps reduce the overall vehicle weight, thereby increasing reliability. Furthermore, government regulations to minimize road fatalities, and technological advancements related to in-vehicle safety are boosting the demand for advanced safety systems. In addition, demand for in-car infotainment systems owing to efficiency, comfort, and convenience is estimated to fuel the market growth further.

This has triggered the demand for in-vehicle data storage to support complicated in-vehicle features. This is expected to be one of the key factors driving the automotive infotainment application market. Other application segments, such as body electronics and powertrain, are expected to witness slow growth. The industry is highly dependent on the raw material suppliers and its procurement cost, availability, and delivery. Therefore, strong demand for raw materials can have a substantial influence on manufacturers operating costs, thereby, affecting their profit margins.
Manufacturers, such as Delphi Technologies, Denso Corporation, Robert Bosch GmbH, and ZF Friedrichshafen AG, utilize raw materials including aluminum, resin, and copper to manufacture components like ECUs, instrument clusters, electronic switches, body control modules, and immobilizers. Thus, any impact on the supply and cost of the raw materials will directly affect the cost of the final components, thus changing the vehicle cost.

Market Segmentation, Outlook & Viewpoint: Global Automotive Electronics Market

Component Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Electronic Control Unit
  
Sensors
  
Current Carrying Devices
  
Others

Application Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
ADAS
  
Infotainment
  
Body Electronics
  
Safety Systems
  
Powertrain

Sales Channel Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
OEM
  
Aftermarket

Key Players, Recent Developments & Regional Insights: Global Automotive Electronics Market

Based on application, the market has been categorized into ADAS, infotainment, body electronics, safety systems, and powertrain. Safety systems led the market in 2018 and accounted for over 28.43% of overall revenue share. Essential electronics systems used to ensure passenger safety include airbags, on/off switches for airbags, back up sensing system, electro-chromatic mirror/auto dimming mirrors, energy-absorbing steering system, head restraints, heads-up display, padded knee bolster, and passenger sensing system.

Increasing consumer awareness and several initiatives undertaken by the governments across the globe have bolstered the segment growth. Moreover, suppliers, such as Continental AG, along with OEMs are focused on providing low-cost ADAS for the compact and medium-sized car segments. The company introduced affordable ADAS systems, such as driver monitoring systems, traffic sign recognition, and LDW system. Furthermore, New Car Assessment Program (NCAP) in regions, such as Europe and China, has been mandating AEB and LDW systems.

Regional Insights

Asia Pacific market was valued at USD 93.96 billion in 2018. Asian countries, particularly Taiwan, South Korea, Malaysia and Thailand, have significantly contributed towards market growth due the booming electronic component manufacturing industry. Most of the product demand in Asia Pacific is fulfilled by China and Japan. However, the limited number of manufacturers poses an excellent investment opportunity for regional suppliers to capitalize on the local demand, thereby making rest of the region an attractive place for investors.

North America is expected to be the second-largest market. U.S. is expected to dominate the North American regional market over the forecast period owing to higher automotive production and presence of key manufacturers, such as TRW Automotive, Continental Corporation, Robert Bosch GmbH, and Autoliv, Inc., in the country. Strict fuel economy and emission control standards are expected to drive the powertrain electronics market in this region.

Automotive Electronics Market Share Insights

Prominent industry participants include Continental Corporation; Robert Bosch GmbH; Autoliv, Inc.; Samsung Group; Delphi Technologies; Denso Corporation; and ZF Friedrichshafen AG. The market is highly consolidated in nature, since the top two participants acquired around 40% share of the overall market revenue in 2018. To maintain the position in such consolidated market, companies are following strategic initiatives, such as M&A, joint ventures, product launches, and partnerships. Moreover, they also invest heavily in R&D for the development of innovative solutions to gain competitive edge over others.

Key Insights Covered: Global Automotive Electronics Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive Electronics industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Automotive Electronics industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive Electronics industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive Electronics industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive Electronics industry.

Research Methodology: Global Automotive Electronics Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other