Automotive Electronics Market Report and Forecast 2024-2032

According to this report, the global automotive electronics market size reached a value of USD 247.67 billion in 2023. Aided by the increasing integration of advanced electronic systems in modern vehicles, the market is projected to further grow at a CAGR of 6.5% between 2024 and 2032 to reach a value of USD 436.72 billion by 2032.

Automotive electronics refer to the electronic systems and components used in vehicles, including engine control units (ECUs), infotainment systems, safety features, and in-car connectivity solutions. These systems play a pivotal role in enhancing vehicle performance, safety, and comfort, thereby significantly influencing the overall driving experience.

One of the major automotive electronics market trends is the increasing adoption of electric vehicles (EVs). As governments worldwide implement stringent regulations to reduce carbon emissions, the shift towards cleaner and more efficient transportation solutions is gaining momentum. Automotive electronics are integral to the operation and functionality of EVs, controlling everything from battery management to regenerative braking systems. This surge in EV production and adoption is expected to significantly boost the demand for automotive electronics.

The rapid advancements in automotive electronics technology are also contributing to the automotive electronics market value. The increasing incorporation of sensors, radar, and cameras in vehicles is enhancing the safety and functionality of modern automobiles. ADAS technologies, which include features like lane departure warnings, adaptive cruise control, and automatic emergency braking, rely heavily on automotive electronics. As consumer awareness regarding vehicle safety increases, the demand for such systems is expected to rise, driving the expansion of the market.

The development of autonomous vehicles is another key factor propelling the automotive electronics market growth. Self-driving cars require sophisticated electronic systems for navigation, decision-making, and obstacle detection. Companies are investing heavily in research and development to bring fully autonomous vehicles to the market, further fuelling demand for advanced automotive electronics.

The integration of 5G technology into vehicles is expected to further enhance in-car connectivity, enabling faster data transmission and real-time communication between vehicles and infrastructure. This, in turn, will support the development of advanced vehicle-to-everything (V2X) technologies, paving the way for safer and more efficient transportation systems.

In-car infotainment and connectivity systems are witnessing a surge in demand due to the growing consumer preference for enhanced entertainment and communication features. Modern vehicles are equipped with touchscreens, navigation systems, voice control, and smartphone integration, all of which rely on complex electronic systems. Additionally, the rise of connected cars, which are equipped with internet access and enable communication with external devices, is driving the automotive electronics market demand.

The global market for automotive electronics is witnessing rapid expansion, particularly in emerging economies such as China and India. These countries are experiencing significant growth in vehicle production and sales, driven by rising disposable incomes and increasing urbanization. Additionally, the growing demand for electric vehicles in these regions is expected to further boost the market. This is expected to increase the automotive electronics market revenue.

The market is also seeing increased collaboration between automotive manufacturers and technology companies. Partnerships between automakers and tech giants are driving the development of innovative solutions, such as over-the-air (OTA) updates and connected car services, which are enhancing the capabilities of modern vehicles.

The global market for automotive electronics is being driven by the increasing demand for electric vehicles, advanced safety features, and connected car technologies. As the automotive industry continues to evolve, the role of electronics in vehicles will become even more critical, shaping the future of transportation. While challenges such as high costs and supply chain disruptions remain, the market offers significant opportunities for innovation and expansion, particularly in emerging economies. With continued advancements in technology and the growing focus on sustainability, the automotive electronics market is expected to thrive in the coming years.

Market Segmentation

The market can be divided based on component, propulsion, vehicle type, application, distribution channel, and region.

Market Breakup by Component

• Sensors
• Actuators
• Processors
• Microcontrollers
• Others

Market Breakup by Propulsion

• ICE
• Electric

Market Breakup by Vehicle Type

• Two-Wheeler
• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Market Breakup by Application

• ADAS
• Infotainment
• Body Electronics
• Safety System
• Powertrain Electronics

Market Breakup by Distribution Channel

• OEM
• Aftermarket

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global automotive electronics market. Some of the major players explored in the report are as follows:

• Hella GmbH & Co. KGAA
• Continental AG
• Robert Bosch GmbH
• Denso Corporation
• ZF Friedrichshafen AG
• Hitachi Ltd.
• Magna International Inc.
• Sony Group Corporation
• Valeo SE
• Infineon Technologies AG
• Visteon Corporation
• Others