Motor Vehicle Electrical and Electronic Equipment Global Market Report 2024

The motor vehicle electrical and electronic equipment market size has grown strongly in recent years. It will grow from $186.73 billion in 2023 to $203.83 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth observed in the historical period can be attributed to several key factors, including the expansion of the automobile industry, the increasing electrification of vehicle functions, the integration of consumer electronics into vehicles, regulatory requirements, and advancements in computer technology.

The motor vehicle electrical and electronic equipment market size is expected to see strong growth in the next few years. It will grow to $288.14 billion in 2028 at a compound annual growth rate (CAGR) of 9.0%. The anticipated growth in the forecast period can be attributed to several key factors, including the expansion of electric and hybrid vehicles, the development of autonomous vehicles, the integration of connectivity and IoT (Internet of Things) technology into vehicles, environmental regulations driving electrification, and the increased electrification of commercial vehicles. Significant trends expected in the forecast period encompass the adoption of advanced driver assistance systems (ADAS), the growing emphasis on cybersecurity in vehicles, the implementation of vehicle-to-everything (V2X) communication, the electrification of auxiliary vehicle systems, and advancements in user interface and human-machine interaction within the automotive industry.

The surge in demand for safer vehicles, equipped with advanced electrical and electronic safety features, serves as a primary driver for the motor vehicle electrical and electronic equipment market. The escalation in road accidents is primarily attributed to factors such as reckless driving, overspeeding, non-compliance with traffic regulations, and incidents of driving under the influence. Implementing electrical and electronic safety systems like anti-lock braking systems (ABS) significantly enhances vehicle safety by preventing wheel lock-ups during sudden braking. Notably, the National Highway Traffic Safety Administration (NHTSA) reported a staggering estimate of 8,730 motor vehicle crash fatalities in the initial three months of 2021, marking a 10.5% increase compared to the agency's projected 7,900 fatalities for the first quarter of 2020. In response, the Global New Car Assessment Programme (Global NCAP) has aligned with the UN Decade of Action for Road Safety, setting new objectives for 2030 to mitigate these incidents and ensure road safety. The rising demand for vehicles with improved safety features to reduce accident susceptibility positively influences the growth of the motor vehicle electrical and electronic equipment market.

The primary types of motor vehicle electrical and electronic equipment include lighting equipment, automatic voltage and voltage-current regulators, insulated ignition wiring sets, generators for internal combustion engines, spark plugs for internal combustion engines, and various other components. Lighting equipment encompasses the electronic components used in vehicles for lighting purposes. Motor vehicle electrical and electronic equipment find applications across various vehicle types, including two-wheelers, passenger cars, and commercial vehicles. These vehicles can belong to different classes, such as mid-priced or luxury, depending on their features and specifications.

The motor vehicle electrical and electronic equipment Market research report is one of a series of new reports that provides motor vehicle electrical and electronic equipment market statistics, including motor vehicle electrical and electronic equipment industry global market size, regional shares, competitors with a motor vehicle electrical and electronic equipment market share, detailed motor vehicle electrical and electronic equipment market segments, market trends and opportunities, and any further data you may need to thrive in the motor vehicle electrical and electronic equipment industry. This motor vehicle electrical and electronic equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The ongoing transition to electric vehicles (EVs) is anticipated to be a significant catalyst driving the motor vehicle electrical and electronic components market. EVs rely on electric motors powered by stored electrical energy, necessitating vital electrical and electronic components for battery management, drive control, infotainment, and advanced driver-assistance systems. According to the International Energy Agency's 2023 report, the global electric car market has witnessed remarkable growth, with sales exceeding 10 million in 2022. The percentage of electric cars in total sales surged from approximately 4% in 2020 to 14% in 2022, expected to reach 14 million by the close of 2023, indicating a 35% year-on-year growth. This shift is primarily fueled by a notable surge in new EV purchases during the latter half of the year, significantly driving the market for motor vehicle electrical and electronic components.

The potential threat of life-endangering accidents arising from electrical and electronic equipment failures in motor vehicles poses a significant negative impact on the growth of the motor vehicle electrical and electronic equipment market. Malfunctions within a vehicle's electrical systems can lead to serious accidents, as highlighted by the U.S. Department of Transportation’s National Highway Traffic Safety Administration, citing electrical system failures as the cause of 21% of motor vehicle accidents. In a notable example, Ford recalled 48,000 Mustang Mach-E electric crossovers in the USA in 2022 due to potential high-voltage contactor overheating in the vehicle's battery. The risks associated with such equipment failures significantly impede the market's growth prospects.

Manufacturers in the motor vehicle electrical and electronic equipment market are actively investing in the enhancement of electronic sensors utilized in automobiles like cars and trucks to augment visibility and safety awareness. These sensors cover a wide range of functionalities, encompassing ambient light, battery current, differential oil temperature, door open warning, anti-lock braking systems (ABS), auto door lock position, battery temperature, and brake power booster. Companies within this sector are pioneering the development of sensors aimed at enhancing battery life in vehicles. For instance, in May 2022, Continental AG, a prominent German automotive parts manufacturer, introduced innovative sensors designed specifically for electric vehicles - the Current Sensor Module (CSM) and Battery Impact Detection (BID). These solutions prioritize the protection and maintenance of battery parameters. The compact CSM, a single-unit sensor, independently measures current by integrating shunt and hall technology, meeting stringent functional safety standards. This surge in sensor technology signifies the latest trend among market participants in the motor vehicle electrical and equipment segment.

Key players in the motor vehicle electrical and electronic components market are introducing state-of-the-art power semiconductors, such as RoadPak, to cater to the growing demand for efficient electric vehicle power solutions. RoadPak, a cutting-edge power semiconductor module, capitalizes on advanced silicon carbide (SiC) technology to provide exceptional power density. In a significant development, Hitachi Energy, a Switzerland-based energy industry company, unveiled RoadPak at PCIM Europe in May 2022. This groundbreaking module is engineered to facilitate quicker charging, extend driving ranges, and bolster reliability in electric vehicles. RoadPak, tested in Mahindra Racing Formula E team's cars, demonstrates adaptability for various EVs, from luxury cars to heavy-duty trucks. These power semiconductors are vital for EVs, transforming battery DC power into the AC required for motor operation and supporting the integration of renewable energy into power grids, aligning with the move toward sustainable transportation.

In June 2021, Hyundai Motor Group, a major automobile manufacturer based in South Korea, completed the acquisition of Boston Dynamics Inc. for a significant sum of 1.1 billion. This strategic move expanded Hyundai Group's focus on evolving into a smart mobility solutions provider, significantly investing in cutting-edge technologies including artificial intelligence (AI), autonomous driving, urban air mobility (UAM), smart factories, and robotics. Boston Dynamics Inc., a U.S.-based company specializing in motor vehicle electrical and electronic equipment, particularly in the realm of robotics, is instrumental in the Hyundai Group's foray into future technologies and smart mobility solutions.

Major companies operating in the motor vehicle electrical and electronic equipment market include Bosch Limited, General Motors Corporation, Tenneco Inc., DENSO Manufacturing Tennessee Inc., Delphi Technologies Inc., Hyundai Motor Company, Hella GmbH & Co. KGaA, Technitrol Delaware Inc., Ford Motor Company, Honeywell International Inc., Mars Incorporated, Raytheon Technologies Corporation, ZF Friedrichshafen AG, ITT Inc., Textron Inc., Cummins Inc., Infineon Technologies AG, Hitachi Ltd., HGM Automotive Electronics, Delta Electronics, Atotech Deutschland GmbH & Co. KG, JTEKT Corporation, Knorr-Bremse AG, Nexteer Automotive Group Limited, thyssenkrupp AG, Magna International Inc., Aisin Seiki Co. Ltd., Continental Automotive Systems Inc., Asama Coldwater Manufacturing Inc., Global Steering Systems LLC, Maval Industries LLC, American Showa Inc., Atsco Remanufacturing Inc., KYB Americas Corporation, Raytech Powertrain LLC

Asia-Pacific was the largest region in the motor vehicle electrical and electronic equipment market in 2023. 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 are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the motor vehicle electrical and electronic equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

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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