Automotive Electronics Products Market Size, Share, and COVID-19 Impact Analysis, By Component (Electronic Control Units, Sensors, Current Carrying Device, and Others), By Application (ADAS, Infotainment, Safety Systems, Powertrain Electronics, and Body Electronics), By Sales Channel (OEM and Aftermarket), By Vehicle Type (IC Engines, Hybrid, and Electric Vehicle) and Regional Forecast, 2024-2032

Automotive electronics has constantly been one of the most significant components of the automobile industry. The industry has been facing a massive transition from conventional fuel vehicles to electric and automated vehicles. The companies are diligently developing high-tech and advanced electronics components to achieve enhanced safety, impeccable entertainment, and vehicle comfort features.

Modern vehicles are equipped with various electronic components such as ignition, engine management, headlights, radio power systems, telematics, emergency systems, and sophisticated sensors, which rely on the automobile's electronic system. With increasing maturity, the automotive industry is increasingly adopting Artificial Intelligence (AI) and Internet of Things (IoT) and integrating them with its products to attain enhanced autonomy, safety & security, and world-class infotainment.

The automotive electronics products market demand is continuously inching upward owing to factors such as vehicle safety demand, IoT and AI adoption, growing need for automated vehicles, and rapid investment in the green and EV segment. The government's incentives and stricter environmental norms continuously push consumers to migrate from traditional IC engine cars to EVs, resulting in greater adoption of automation. 

The growing awareness of environmental concerns is a driving factor making consumers shift toward electric and hybrid vehicles. As the overall automobile industry is moving more toward electrification and automation, the use of advanced sensors increases to make the ride safer, more efficient, and sustainable at the same time. Hence, manufacturers are constantly motivated to develop and integrate advanced technology systems to cater to consumers' rising needs.

Impact of COVID-19 on the Automotive Electronics Products Market

The worldwide shutdown impacted various industries negatively, leading to revenue decline, loss of product sales, slowed production rate, unemployment, and many other severe impacts. As COVID-19 hit the world in early 2020, all the major economies had multiple setbacks due to lockdowns and supply chain bottlenecks. FY20 experienced negative growth as consumer attitudes and preferences changed significantly.

Although demand started picking up in FY-21, the shortage of semiconductor chips, an essential part of car manufacturing, controlling air conditioning systems, operating infotainment systems, and ensuring proper working of multiple sensors involved, severely affected the automotive industry, resulting in lower car production. Stricter social distancing norms forced companies to work at half capacity, significantly affecting the economy. Another issue was regarding the procurement of raw materials. The crunching supply chain route led to the scarcity of raw materials, leading to insufficient production and elevated cost of goods and services. These factors have severely affected automotive electronics during the COVID-19 pandemic.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships


• Porter's Five Forces Analysis


• Technological Developments


• Impact of COVID-19 on the Automotive Electronics Products Market

Analysis by Application

The application is segmented into ADAS, infotainment, safety systems, powertrain electronics, and body electronics, in which ADAS is predicted to grow faster and hold the maximum market share. The increasing consumer preference for advanced safety and security features in the car will lead the segment in the global market. Manufacturers are extensively using the ADAS technology in almost every newly produced vehicle to improve driving comfort and ensure road safety. The advancement in overall vehicle technology is anticipated to drive market growth.

Analysis by Component

The component segment is sub-divided into electronic control units, sensors, current-carrying devices, and others in which the sensor is anticipated to witness significant growth over the coming years. Demand for IoT technology-based devices, rise in demand for sensors in developing smart cars, advancement in the automation sector, and the emerging use of LiDAR technologies in automobiles will propel the market. The growing focus on electrification is another driving factor for the sensor segment.

Regional Analysis

Asia Pacific is predicted to lead the automotive electronic products market over the coming years. The rising populace migrating to the middle-income bracket, rising disposable income, multiple presences of OEM in China and Japan, cheap access to labor, the advent of 5G, and proliferation in technology adoption, among others, paves a broader road for growth in the region. Additionally, the market's growth in Asia Pacific is optimistic as Taiwan is the primary player who controls nearly 3/4^th of the semiconductor chip market, which gives manufacturers in Asia Pacific a superiority over other regions. Increasing regulations and stricter environmental norms have forced manufacturers and consumers to shift from IC engine vehicles to electric and automated vehicles, which extensively uses electronic products to achieve high tech specification, resulting in a growth of the automotive electronics products market.

Key Players Covered

The report includes the profiles of key players such as Continental AG, Sony Corporation, Robert Bosch GmbH, Hyundai Mobis, Aptiv, Autoliv Inc., Magna International Inc., Aisin Seiki Co. Ltd, Philips N.V., NVIDIA Corporation, Infineon Technologies AG and Valeo SA.

Segmentation

Key Industry Developments

• May 2023 – Panasonic Industry Co., Ltd., based in Kadoma, Osaka, and led by President and CEO Shinji Sakamoto, has introduced a new product called R-2400. This innovative high-thermal conductive film is designed for use in multilayer circuit boards.


• November 2020 – Broadcom Ltd. Launched its first automotive IEEE 802.3ch multigigabit physical and multilayer switches equipped with MACses support. The solution is developed to cater to the increasing demand for in-vehicle data security and high bandwidth networking.