AUTOMOTIVE ELECTRONICS MARKET ANALYSIS

Regional Analysis

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North America dominates the automotive electronics with an estimated market share of 35.2% in 2024. The large presence of major automakers such as General Motors, Ford, and Tesla along with major automotive electronics suppliers like Delphi, Bosch, and Continental have ensured that North America leads in sourcing automotive electronics components locally. Automotive sector is highly integrated in the U.S. economy, and vehicles have increasingly become connected mobile devices necessitating advanced electronic components. North America accounts for over 35% of the global demand for infotainment systems, engine control units, braking systems and other electronic components used in vehicles.

However, Asia Pacific is expected to emerge as the fastest growing regional market, primarily driven by China and India. The booming automobile manufacturing industry in China catering to its own massive domestic market as well as being export hubs for countries in other regions has fueled demand. Vehicle production in China has surged at a double-digit rate annually. Companies like BYD, Great Wall, and Chery have grown rapidly as homegrown auto brands. This has boosted demand for sophisticated automotive electronic offerings to be embedded across entry and luxury segments in China.

Apart from China, India has emerged as a major automotive hub and its vehicle production is expected to become 4th largest globally by 2023. Local automakers like Tata, Mahindra along with brands setting up local manufacturing like Suzuki, Ford, and Volkswagen boosted the market growth in the country. The competitive pricing and feature-rich vehicles targeted at millennials have increased electronics per vehicle. Furthermore, India has also aggressively pushed policies promoting electric mobility which heavily depends on advanced electronics. These factors have positioned the Asia Pacific region, led by China and India, as the most dynamic market for automotive electronics globally.