Automotive Electronics Market Size, Status, Top Players Trends in Upcoming Years

Posted by Devanshu Shrivastava on December 6th, 2021

The increasing incorporation of integrated cockpit systems in vehicles will fuel the automotive electronics market at a CAGR of 9.3% during 2020–2030. The market was valued at 5.7 billion in 2019 and it is projected to reach 5.3 billion revenue by 2030. Unlike conventional cockpits, wherein drivers have to manually control the heads-up displays (HUDs), voice assistance, navigation, smart heating, ventilation, and air conditioning (HVAC), and embedded virtualization systems, integrated cockpits are equipped with multiple screens to display the vehicle data, to provide greater convenience to the driver. 

Additionally, the surging use of advanced driver assistance system (ADAS) features will also amplify the adoption of electronic components in the automobile sector in the coming years. The burgeoning demand for ADAS can be owed to the rising incidence of road accidents and growing concerns regarding vehicle and passenger safety. The incorporation of such solutions helps in mitigating the occurrence of road accidents, by reducing the probabilities of driver negligence.

According to the World Health Organization (WHO), nearly 1.35 million fatalities are caused by road crashes each year. This can be significantly reduced by the adoption of ADAS. In recent years, chassis electronics have been the most commonly used component by the automobile industry, because they are the most basic electronics for every vehicle. The increasing safety concerns being raised over vehicle safety have led to the implementation of several government regulations mandating the integration of chassis electronics for brake assist systems.

In addition, automakers are also focusing on the installation of passive safety systems, passenger comfort systems, entertainment systems, transmission electronics, and engine electronics in their models. According to P&S Intelligence, Asia-Pacific (APAC) emerged as the largest producer of automotive electronic components in the recent past, due to the high-volume manufacturing of automobiles in India, South Korea, Japan, and China, primarily on account of the abundant availability of cheap raw materials and labor in the region.

Additionally, the APAC automotive electronics market is also expected to exhibit the fastest growth in the foreseeable future. This can be mainly attributed to the increasing popularity of EVs, owing to the surging pollution levels and enactment of favorable government policies, in the region. Thus, the burgeoning need for integrated cockpits and ADAS features will augment the need for automotive electronic components in the foreseeable future.