Automotive Electronics Market is anticipated to grow substantially through 2032, owing to stringent regulations imposed by central governments to preserve environment. Various regulatory bodies are also enforcing vehicle safety measures to reduce accidents and fatalities.
Besides, autonomous electronics technologies, including autonomous driving, all-electric cars, and in-car infotainment, are constantly gaining traction in the automotive industry. Enhanced driving behavior, fuel efficiency, and comfort of the drivers and riders are key factors slated to increase the product adoption in the coming years. In addition, constant innovations in intelligent technologies such as the incorporation of GPS and the entire IoT ecosystem to support vehicles for transmitting high-speed data, will also positively impact the overall industry outlook.
Key providers operating in the market are engaging in strategic initiatives such as mergers and acquisitions, partnerships, R&D investments, and new product launches to gain a competitive edge in the industry. To cite an instance, in 2022, Magna International Inc. acquired the Veoneer Active Safety business from SSW Partners. Magma plans to expand its ADAS customer base and geographic diversification with this deal.
Overall, the automotive electronics industry is segmented in terms of vehicle type, application, and region.
Considering the vehicle type, the passenger vehicles segment is slated to demonstrate sturdy growth through 2023–2032, owing to the increasing demand for connection, patient comfort, and safety features in vehicles. Rising production and sales of passenger vehicles would further prompt demand for automotive electronics in these vehicles. As per OICA statistics, the passenger vehicle sales in 2021 reached a whopping more than 56 million units, worldwide.
Based on application, the ADAS segment is slated to be valued at over USD 45 billion by 2032. Advanced driver assistance systems enhance automotive safety and performance by improving and automating vehicle electronic systems. Moreover, burgeoning road accidents would further stimulate the need for implementing ADAS systems in vehicles. According to credible sources, over 90% of road accidents take place due to factors such as driving under the influence of alcohol, drowsiness, speeding up, and others.
Regionally, the North America automotive electronics industry accounted for over USD 45 billion in 2022. The regional market is anticipated to hold a considerable business share through 2023-2032. This can be driven by the constantly developing EV environment in industrialized and developed nations such as the U.S., along with the development of algorithms for signal processing and sensor technology for offering enhanced safety.