Automotive Electronics Market Report 2026

The automotive electronics market size has grown strongly in recent years. It will grow from $315.77 billion in 2025 to $342.37 billion in 2026 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to rising vehicle electrification, demand for driver comfort features, growth of electronic control units, safety regulation enforcement, expansion of passenger vehicle production.

The automotive electronics market size is expected to see strong growth in the next few years. It will grow to $475.97 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to autonomous driving development, connected car adoption, electric vehicle penetration, software-defined vehicle architectures, demand for intelligent mobility solutions. Major trends in the forecast period include integration of advanced driver assistance electronics, growth of in-vehicle infotainment systems, rising adoption of vehicle telematics, expansion of electronic safety systems, increasing use of vehicle sensors.

The growing adoption of electric vehicles is anticipated to drive the expansion of the automotive electronics market in the future. Electric vehicles are powered by motors that utilize electricity stored in batteries. Moreover, the push to combat COVID-19 and the goal of achieving net-zero emissions have led to a sudden rise in the adoption of EVs and hybrid vehicles. Automotive electronics play a crucial role in electric vehicles by facilitating the electric powertrain system that delivers high power to the vehicles. For example, in August 2024, a report from the U.S. Energy Information Administration (EIA), a U.S.-based agency, indicated that the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in the U.S. rose from 17.8% of total new light-duty vehicle (LDV) sales in Q1 2024 to 18.7% in Q2 2024. Thus, the increasing penetration of electric vehicles is driving the growth of the automotive electronics market.

Leading companies in the automotive electronics market are concentrating on the development of electronic components, such as high-amperage surface-mount fuses, to improve reliability and safety in automotive and industrial electronic systems. High-amperage surface-mount fuses are compact electrical components designed to protect circuits by managing high current ratings and preventing overloads and short circuits. For example, in October 2023, Littelfuse, a U.S.-based manufacturer of circuit protection and electronic components, introduced the Ultra-High Amperage SMD Fuse Series, aimed at circuit protection in various applications, especially in automotive and industrial electronics. These fuses are notable for their ability to handle high current ratings while maintaining a compact surface-mount design. This series enhances the reliability and safety of electronic systems by preventing overloads and short circuits. Additionally, the fuses have a low profile and are well-suited for high-density applications, making them ideal for contemporary electronic devices.

In January 2024, Qualcomm Technologies, Inc., a US-based provider of next-generation wireless technologies, partnered with Robert Bosch GmbH to advance centralized vehicle architectures for smarter, safer, and more connected vehicles. This collaboration aims to integrate cockpit, ADAS, and automated driving functions using Qualcomm’s Snapdragon Ride Flex SoC platform, thereby strengthening their presence in the automotive electronics market. Robert Bosch GmbH is a Germany-based company that supplies automotive electronics, ADAS, sensors, centralized vehicle computers, hardware, and embedded automotive software solutions.

Major companies operating in the automotive electronics market report include Robert Bosch GmbH, Denso Corporation, Continental AG, ZF Friedrichshafen AG, Aptiv PLC, Valeo, Marelli Holdings Co., Ltd., Hella GmbH & Co. KGaA, Aisin Seiki Co., Ltd., Panasonic Automotive, Renesas Electronics Corporation, NXP Semiconductors N.V., Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments, Hitachi Ltd., Hyundai Mobis, Autoliv, Magna International, Samsung Electronics.

Asia-Pacific was the largest region in the automotive electronics market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electronics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive electronics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive electronics market consists of sales of adaptive cruise control, navigation systems, adaptive light control, actuators, processors, and microcontrollers. 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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