Motor Vehicle Electrical and Electronic Equipment Market Report 2026

The motor vehicle electrical and electronic equipment market size has grown strongly in recent years. It will grow from $205.84 billion in 2025 to $221.92 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to growth of vehicle electrification, demand for safety features, electronic component cost reduction, lighting technology evolution, engine efficiency requirements.

The motor vehicle electrical and electronic equipment market size is expected to see strong growth in the next few years. It will grow to $311.35 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to electric vehicle production growth, connected car adoption, advanced sensor integration, smart lighting demand, stricter safety regulations. Major trends in the forecast period include rising demand for advanced lighting systems, growing adoption of vehicle electronics in evs, expansion of sensor and wiring harness usage, integration of smart power management, improvement in electrical safety standards.

The increasing number of road accidents is expected to drive the growth of the motor vehicle electrical and electronic equipment market in the coming years. Road accidents refer to collisions or crashes involving motor vehicles on public roads. The rise in accidents is driven by factors such as speeding and distracted driving, including mobile phone use and other unsafe behaviors. The motor vehicle electrical and electronic equipment industry is experiencing higher demand as this trend encourages the adoption of advanced safety electronics, including ADAS, collision-avoidance sensors, automatic braking systems, and enhanced telematics. For instance, in January 2024, according to Roads Australia, an Australia-based national industry organization focused on road network and transport safety, road fatalities in 2023 reached 1,266, representing a 7.3% increase compared with the previous year. Therefore, the rise in road accidents is propelling growth in the motor vehicle electrical and electronic equipment market.

Major companies in this market are focusing on developing advanced multi-domain system-on-chips to enhance centralized vehicle architectures, safety, connectivity, and computing performance. A multi-domain system-on-chip is a high-performance semiconductor that integrates processing for functions such as driver assistance, infotainment, and communications into a single platform, enabling faster data handling and reduced system complexity. For instance, in November 2024, Renesas Electronics Corporation, a Japan-based semiconductor company, launched the R-Car X5H, a 3-nanometer automotive system-on-chip designed for intelligent and software-defined vehicles. It features 32 Arm CPU cores, integrated AI acceleration, and hardware isolation for safety. The R-Car X5H consolidates functions such as ADAS, infotainment, and secure communications into a single chip while supporting future scalability, improving performance efficiency and integration for modern vehicle electronics.

In January 2024, Hitachi Energy Ltd., a Switzerland-based technology company, acquired Coet for an undisclosed sum. This acquisition aligns with Hitachi Energy's goal to expand its presence in the electric mobility sector, focusing on high-power charging solutions for electric buses and trucks. Coet, an Italy-based company, specializes in manufacturing electrical equipment for electric vehicles, a category of motor vehicles.

Major companies operating in the motor vehicle electrical and electronic equipment market report include Bosch Limited, DENSO Manufacturing Tennessee Inc., Delphi Technologies Inc., Hella GmbH & Co. KGaA, Continental Automotive Systems Inc., Infineon Technologies AG, ZF Friedrichshafen AG, Magna International Inc., Hitachi Ltd., Hyundai Motor Company, Ford Motor Company, General Motors Corporation, Delta Electronics, Nexteer Automotive Group Limited, Knorr-Bremse AG, JTEKT Corporation, Aisin Seiki Co. Ltd., Honeywell International Inc., HGM Automotive Electronics, Raytech Powertrain LLC.

Asia-Pacific was the largest region in the motor vehicle electrical and electronic equipment market in 2025. Western Europe was the second largest region in the motor vehicle electrical and electronic equipment market. The regions covered in the motor vehicle electrical and electronic equipment market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the motor vehicle electrical and electronic equipment market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The motor vehicle electrical and electronic equipment market consists of sales of power windows, power steering, headlights and other exterior lights, windshield wipers, and defroster. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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