The global automotive electronics market was valued at USD 226.5 billion in 2017 and is anticipated to grow at a CAGR of 9.1% during the forecast period. Automotive electronics are electrically-generated systems used in road vehicles. Automotive electronics are used in infotainment systems, safety systems, body electronics, ADAS, and powertrain among others. Automotive electronics are capable of operating at extreme temperature ranges as compared to commercial electronics. The growing trend of lightweight, miniaturization, intelligence and electrification in the automotive market has increased the demand for advanced automotive electronics.
The growing automotive industry, and increasing demand for luxury vehicles worldwide have accelerated the demand for automotive electronics systems. The rising penetration of electric and hybrid vehicles and increasing safety concerns boosts the adoption of automotive electronics. The rising incidents of road accidents have encouraged market players to integrate advanced electronics into their vehicles to address the safety concerns and fulfil safety mandates. There has been a significant increase in sale of passenger vehicles, thereby increasing the demand of automotive electronics. The introduction of stringent government regulations regarding vehicular safety and growing development of autonomous vehicles further support the growth of the market.
The global automotive electronics market is segmented on the basis of application, vehicle type, sales channel, and geography. Based on application, the market is segmented into Powertrain, ADAS, Safety Systems, Infotainment, Body Electronics, and others. In 2017, safety systems accounted for the highest market share in the global automotive electronics market. Safety systems electronics includes airbags, anti-theft systems, traction control system, keyless entry systems, and anti-lock braking system among others. The increasing development of autonomous vehicles, rising incidences of accidents, and growing safety concerns on the road drive the growth of this segment.
The sales channel segment is categorized into OEM, and aftermarket. OEM accounted for the dominant share in the global automotive electronics market in 2017.
The vehicle types in the global automotive electronics market include passenger vehicles, and commercial vehicles. Passenger vehicles dominated the global automotive electronics market in 2017 owing to increasing demand for passenger cars from emerging economies, and technological advancements. Rising disposable income, changing lifestyles, growing demand for luxury and comfortable driving experience would support the growth of automotive electronics market in this segment.
This report comprises a detailed geographic distribution of the market across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. Asia-Pacific accounted for the largest share in the global Automotive Electronics market in 2017. The rising demand for automobiles, and significant growth in the automotive sector accelerates the adoption of automotive electronics in the region. The growing disposable income, and improving living standards, along with emerging economies of China, Japan, and India boost the market growth in Asia-Pacific. The introduction of stringent government regulations regarding vehicular safety and development of autonomous vehicles are factors expected to provide growth opportunities in the region during the forecast period.
The vendors in the market are launching new products to meet the growing customer needs. In addition, the leaders in the market are acquiring and collaborating with top companies in the market to enhance their offerings in the market and expand their customer base. The Automotive Electronics market is highly competitive with the presence of a large number of small and large vendors. The leading players in the market include Bosch Group, Atmel Corporation, Delphi Automotive, Hitachi Automotive, Texas Instruments, Infineon Technologies, ZF Friedrichshafen AG, ON Semiconductor Corp., OMRON Corporation., and STMicroelectronics N.V. among others.