Automotive Electronics Market by Component (ECU, Sensors, ICs), Material (Silicon, Germanium), Application (ADAS, Infotainment Systems), Vehicle Type (ICE, Hybrid, Electric Vehicles), Channel (OEMs, Aftermarket), and Geography - Global Forecast to 2030

The Automotive Electronics Market is projected to reach $361.6 billion by 2030, at a CAGR of 6.7% during the forecast period of 2024 to 2030. 

The growth of this market is attributed to the surge in vehicle electrification, the increasing need for energy-efficient electronic devices, and the rising demand for safety and control systems. In addition, the growing demand for ADAS & AD and the high demand for adaptive lighting systems in passenger & entry-level SUVs are expected to offer significant opportunities for the growth of this market. However, the high cost of electronic systems hampers the growth of this market. In addition, fluctuating raw material prices is a major challenge to the growth of this market.

Surge in Vehicle Electrification to Drive the Growth of the Automotive Electronics Market

The growing availability of EVs, government incentives for EV adoption, the decreasing total cost of EV ownership, and the phasing out of fossil fuel-powered vehicles are driving the adoption of electric vehicles across the globe. Considering this gradual shift, the increasing need for automotive electronics is also expected to increase as they enhance electric vehicles' performance, efficiency, and safety. For example, BMS is a critical electronic system in EVs that monitors and controls the battery pack's performance. It ensures the optimal charging and discharging of the batteries, manages the temperature, and provides safety features to prevent overcharging or overheating. The transition to electrified vehicles has created a need for more advanced and reliable automotive electronic components to control and manage various aspects of the vehicle's operations, such as sensor technology, microcontrollers, and communication interfaces.

Furthermore, vehicles' increasing connectivity and digitalization have fueled the demand for automotive electronics. Electric vehicles have advanced infotainment systems, driver assistance features, and connectivity modules that enable communication with external networks. These systems require various electronics, including navigation units, touchscreens, cameras, sensors, and communication modules. The growing consumer demand for seamless connectivity, enhanced user experience, and advanced safety features has led to a surge in the development and integration of these automotive electronics.

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Key Findings in the Automotive Electronics Market Study:

In 2024, the Electronic Control Units Segment is Expected to Dominate the Automotive Electronics Market

Based on component, the automotive electronics market is segmented into electronic control units, sensors, integrated circuits, head-up displays, actuators, IP modules, and other components. This segment's large market share is attributed to increasing demand for technologically advanced vehicles in developed and developing countries, such as hybrid, pure electric cars, rising government regulations pertaining to fuel consumption, and the growing need for better mileage of vehicles by the middle-class population. However, the sensors segment is projected to register the highest CAGR during the forecast period.

In 2024, the Silicon Segment is Expected to Dominate the Automotive Electronics Market

Based on material, the automotive electronics market is segmented into silicon, germanium, and other materials. In 2024, the silicon segment is expected to account for the largest share and is projected to register the highest CAGR during the forecast period of the automotive electronics market. Silicon-based integrated circuits play a vital role in automotive electronics. These ICs are fabricated on silicon wafers using semiconductor manufacturing processes. They integrate multiple electronic components, such as transistors, diodes, resistors, and capacitors, onto a single chip. ICs enable the miniaturization, high performance, and complexity required for various automotive applications.

In 2024, the Body Control & Comfort Segment is Expected to Dominate the Automotive Electronics Market

Based on application, the automotive electronics market is segmented into tire pressure monitoring systems, engine management & powertrain systems, fuel injection systems, infotainment systems, ADAS, body control & comfort, safety, architecture & networking, HVAC systems, autonomous mobility, lighting systems, and other applications. In 2024, the body control & comfort segment is expected to account for the largest share of the automotive electronics market. This segment's large market share is attributed to increasingly stringent engine management requirements for EVs, rising number of premium comfort features in lower vehicle segments, and the integration of V2V and V2X connectivity technologies in vehicles. However, ADAS is projected to register the highest CAGR during the forecast period.

In 2024, the Internal Combustion Engine Segment is Expected to Dominate the Automotive Electronics Market

Based on vehicle type, the automotive electronics market is segmented into internal combustion engine, hybrid, and electric vehicles. In 2024, the internal combustion engine segment is expected to account for the largest share of the automotive electronics market. ICE engines are more durable and require less maintenance than electric motors, and stringent government norms with respect to fuel efficiency are some of the drivers for the growth of this segment. However, the electric vehicles segment is projected to register the highest CAGR during the forecast period.

In 2024, the OEMs Segment is Expected to Dominate the Automotive Electronics Market

Based on distribution channel, the automotive electronics market is segmented into OEMs and aftermarket. In 2024, the OEMs segment is expected to account for the largest share of the automotive electronics market. This segment's large market share is attributed to OEMs providing durability, longevity and shelf-life of auto electronics more genuine than third parties. However, the aftermarket segment is projected to register the highest CAGR during the forecast period.

In 2024, Asia-Pacific is Expected to Dominate the Automotive Electronics Market

Based on geography, the automotive electronics market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia- Pacific is expected to account for the largest share of the market and is also expected to grow during the forecast period. The large market share is attributed to increasing demand for EVs, the growing number of manufacturers offering numerous advanced automotive electronics in the mobility industry, and incentive programs for EV adopters.

Key Players: Automotive Electronics Manufacturers 

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading automotive electronics manufacturers in this market between 2020 and 2024. The key players profiled in the automotive electronics market report are Infineon Technologies AG (Germany), Robert Bosch GmbH (Germany), Valeo Inc. (France), Continental AG (Germany), Hitachi, Ltd. (Japan), Aptiv PLC (Ireland), Texas Instruments Incorporated (U.S.), STMicroelectronics International N.V. (Switzerland), NXP Semiconductors (Netherlands), ZF Friedrichshafen AG (Germany), Visteon Corporation (U.S.), Advanced Micro Devices, Inc. (U.S.), Magna International Inc. (Canada), DENSO CORPORATION (Japan), and Hyundai Mobis Co., Ltd. (South Korea).

Scope of the Report:

Automotive Electronics Market Assessment, by Component

• Electronic Control Units                                      
• Sensors
• Integrated Circuits
• Head-up Displays
• Actuators
• IP Modules
• Other Components

Automotive Electronics Market Assessment, by Material

• Silicon                   
• Germanium
• Other Materials

Automotive Electronics Market Assessment, by Application

• Tire Pressure Monitoring Systems
• Engine Management & Powertrain Systems
• Fuel Injection Systems
• Infotainment Systems
• ADAS
• Body Control & Comfort
• Safety
• Architecture & Networking
• HVAC Systems
• Autonomous Mobility
• Lighting Systems
• Other Applications

Automotive Electronics Market Assessment, by Vehicle Type

• Internal Combustion Engine 
  • Passenger Vehicles
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
• Hybrid    
• Electric Vehicles    
  • Passenger Vehicles
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

Automotive Electronics Market Assessment, by Distribution Channel

• OEMs
• Aftermarket

Automotive Electronics Market Assessment, by Geography

• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Indonesia
  • Rest of Asia-Pacific
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Netherlands
  • Rest of Europe
• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Israel
  • Rest of Middle East & Africa

Key questions answered in the report: