The global automotive electronics market size is expected to reach USD 410.13 billion by 2025, according to a study conducted by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 8.6% over the forecast period. Growing adoption of safety systems, such as anti-lock braking and airbags in automobiles, to curb road fatalities is expected to augment the market growth. Many developed and developing countries are framing new regulations for manufacturers mandating the installation of automated safety systems in vehicles.
For instance, the European Commission and China launched NCAP, which mandates the installation of Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) features, thus, improving the vehicle safety standards. Additionally, the companies are also integrating features, such as Advanced Driver-Assistance Systems (ADAS), along with the infotainment systems. For instance, NVIDIA Corporation introduced the DRIVE CX platform that is a hardware module with software updates. The platform can be used for infotainment, as well as ADAS, solutions in next-generation autonomous vehicles. Moreover, rising demand for state-of-the-art vehicles will drive the market further.
Strict government regulations on fuel emission standards are also likely to have a positive impact on the automotive electronics demand. Moreover, transition towards advanced safety systems, such as alcohol ignition interlocks, emergency call systems, and accident data recorders, is expected to drive the global automotive electronics market over the next eight years. Asia Pacific led the market in 2017 and is expected to continue its dominance over the forecast period. This growth is accredited to the presence of emerging automotive manufacturing countries, such as China, Japan, and India.
Increasing automotive investments, demand for state-of-the-art luxury and hybrid vehicles, and implementation of government regulations regarding safety standards have also fueled automotive electronics demand in this region. Demand for more interactive systems like embedded vision systems capable of real-time image tracking has gained prominence, specifically in North America and Europe regions. For instance, the U.S. Department of Transportation has mandated safety equipment, such as backup camera in all new vehicles, thus, increasing vehicle costs by $200 for the new base models.
Further Key findings from the study suggest:
- The current carrying devices segment is expected to lead the global market due to high usage of relays, fuses, wiring, and connectors
- Based on application, the global automotive electronics market is led by safety systems
- This trend is expected to continue over the forecast period due to strict regulations regarding vehicle safety standards
- Asia Pacific is expected to be the largest regional market over the forecast period on account of the presence of emerging automotive hubs, such as China and India
- Key companies in the global market are Robert Bosch GmbH, Continental Corporation, Intel Corporation, Denso Corporation, Aptiv PLC, and ZF Friedrichshafen AG.