AUTOMOTIVE ELECTRONICS MARKET ANALYSIS

Automotive Electronics Market Size and Trends

Global automotive electronics market is estimated to be valued at USD 254.76 Bn in 2024 and is expected to reach USD 446.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.3% from 2024 to 2031.

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Rising demand for advanced safety, infotainment, and comfort features from consumers can drive the automotive electronics market growth. Technologies such as advanced driver assistance systems (ADAS), autonomous driving, connected cars, and car-to-car communication can witness huge demand due to increasing focus of automakers on safety and connectivity.

Market Driver - Increasing demand for advanced driver assistance systems (ADAS) and electric vehicles (EVs)

The automotive industry has witnessed huge demand for vehicles equipped with advanced driver assistance systems and technologies that enhance vehicle and road safety. ADAS technologies like adaptive cruise control, lane departure warning, automatic emergency braking, blind spot monitoring, and park assist are becoming increasingly popular among consumers. Automakers are also proactively making these systems a standard feature in many new vehicles recognizing their importance. With advancements in technologies like radar, ultrasonic sensors, cameras, and computer vision, ADAS systems can now provide drivers with active assistance and automated features that take some control tasks away from the driver and make driving safer.

Electric vehicles are also transforming the automotive landscape, supported by government policies and regulations to curb vehicle emissions. There has been huge demand for electric passenger cars, and all major automakers now have ambitious EV production targets and product launch plans to switch a part of their fleet to electric. As battery technologies improve and costs decline, there will be increase in driving range of EVs that can help to overcome consumer range anxiety. The rapid expansion of public charging networks across cities and major highways is further incentivizing consumers to choose electric vehicles. Automakers are pouring billions into electrification of their lineups and development of advanced batteries, powertrains, and vehicle electronics that power EVs. This boosts automotive electronics industry as electronic components become more critical in electric vehicles.

Growing Trend of Connectivity and Infotainment Systems in Vehicles

Vehicles are increasingly becoming mobile networking devices and there has been huge demand for advanced connectivity and digital capabilities from drivers and passengers. Technologies like embedded telematics control units, multimedia, and navigation systems, and smartphones integrations that allow features like in-vehicle apps  witnesses widespread adoption. Consumers want to be constantly connected even while driving and access entertainment, information and productivity features seamlessly within their vehicles. This has pushed automakers to equip even basic trim level vehicles with touchscreen infotainment systems, advanced connectivity features like wifi hotspots, advanced speech recognition and connectivity options like Apple CarPlay and Android Auto. Cloud-based technologies are also enhancing vehicle-to-vehicle and vehicle-to-infrastructure communication capabilities. With high-speed in-vehicle data networks automotive electronics are allowing safer, more informative and seamless driving experience through growth of connected services. The rise of mobility-as-a-service business models and autonomous driving trials can boost integration of advanced digital capabilities in vehicles. Connectivity and always-on vehicle infotainment systems are becoming significantly important purchasing considerations for consumers.