Automotive Electronics Market Size By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (Advanced Driver Assistance System (ADAS), Body Electronics, Infotainment & Communication [Audio, Display, Navigation, Head-Up Display, Communication], Powertrain [Engine Controllers, Transmission Drivetrain, Exhaust, xEV], Safety Systems), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Automotive Electronics Market size exceeded USD 240 billion in 2020 and is estimated to grow at over 6% CAGR between 2021 and 2027. Increasing adoption of electric vehicles to reduce pollution and manage fuel consumption will propel the industry growth opportunities. Adding to this, rising initiatives by government and regulatory bodies toward emission control measures will accelerate the adoption of electric vehicles, adding an opportunity for market demand.
 

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Governments from several nations around the globe are initiating new schemes and funding activities to accelerate the adoption of electric vehicles and reduce CO2 emissions in the country. For example, in May 2020, the Government of France announced its incentive of USD 13,150 to buy electric vehicles. The new incentive plan is to reduce the price of battery electric vehicles by 40% and thereby fueling their adoption. These initiatives will further positively influence the automakers to accelerate their production of new EV models.
 

COVID-19 pandemic has severely affected the automotive industry, with the shutdown of various manufacturing facilities, disruption in supply chain, and international trade barriers. The declining demand from consumers has led several automakers to cut down their production capabilities for new vehicles.
 

However, in mid of 2021, majority of the automotive OEMs are planning to revamp their production facilities an increase their investments in automotive electronics market, EVs, and autonomous technologies to gain ahigh competitive edge in the market. Also, increasing government support for automotive OEMs to overcome disruptions in sales due to COVID-19 pandemic will further boost the market opportunities.
 

Increasing government regulations to reduce CO2 emissions in vehicles will drive market opportunities for powertrains

The powertrain segment held over 35% of the automotive electronics market share in 2020 and is projected to expand at around 7% CAGR through 2027. Increasing adoption of powertrain applications to control fuel consumption in vehicles is likely to drive the market revenue.
 

Increasing government regulations and programs toward clean energy to reduce CO2 emissions from vehicles will augment the market opportunities for powertrain solutions. For example, in January 2020, European Union announced the launch of a new regulation “Regulation (EU) 2019/631” to set CO2 emission performance for vans and new passenger vehicles. This will help to reduce 55% of greenhouse gas emissions by 2030 and manage climate neutral nation by 2050.
 

Increasing demand for fuel injection technologies in passenger and commercial vehicles to overcome fuel consumption and energy concern will increase the deployment of efficient powertrain solutions. Several automotive OEMs are increasing their development toward new powertrain solutions to comply with stringent regulations of low carbon emission, accelerating the market opportunities for automotive electronics.
 

Rising adoption of ADAS technology in passenger vehicles to propel automotive electronics market.

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The passenger car segment captured above 85% of the automotive electronics market share in 2020 and is set to witness 7% CAGR till 2027 on account of rising demand for advanced safety systems, electrification, and infotainment systems in vehicles. Several nations around the globe have launched new regulations to integrate ADAS technologies and safety features into upcoming passenger vehicle models to embrace road safety, driving the market outlook.
 

To cater to high demand in the industry and comply with the various government norms for road safety will positively influence the automotive OEMs to integrate various safety and ADAS technologies into vehicles. In December 2019, Hyundai announced the integration of parking assist system into its upcoming vehicles by 2025.
 

Increasing development for electric vehicles in South Korea to spur the market size

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Asia Pacific automotive electronics market size accounted for more than 45% share in 2020 and is estimated to see 8% CAGR through 2027. Rising adoption of electric vehicles in China, South Korea, and Japan is forecast to support regional market demand. Supportive government regulations and policies to increase the adoption of electric vehicles have propelled the market opportunities.
 

The regional government is planning several subsidies and funding activities to increase the sales for electric vehicles in the country. In January 2021, Environment Ministry of South Korea announced the subsidy budget 2021 of around USD 891.7 million for electric vehicles. EV models with the price range below USD 53,000 will receive full subsidies. These initiatives will propel the electric vehicles manufacturing in the region, thereby driving the market growth.
 

Focus on new strategic initiatives to remain competitive in the industry

Prominent players in the automotive electronics market include Bosch Group, Broadcom, Inc, Continental AG, Denso Corporation, Hyundai Mobis, Magna International, Inc., Texas Instruments Incorporated, among others. These market players are continuously involved in new strategies such as mergers and acquisitions to accelerate their product offerings and cater to high demand in the industry. For example, in March 2021, LG Electronics and Luxoft announced their new automotive electronics joint venture “Alluto” in the U.S., which will focus on the infotainment market in the U.S.
 

This automotive electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion from 2016 to 2027 for the following segments:

Market, By Application

• ADAS
• Body electronics
• Infotainment & communication
  • Audio
  • Display
  • Navigation
  • Head-up display
  • Communication
• Powertrain
  • Engine controllers
  • Transmission drivetrain
  • Exhaust
  • xEV
• Safety systems

Market, By Vehicle Type

• Passenger cars
• Commercial vehicles

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Poland
  • Sweden
  • Russia 
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Taiwan
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
• Latin America
  • Brazil
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa