TheNFAPost Podcast

Some of the major automotive electronics market players are Bosch Group, BorgWarner Inc., Broadcom, Inc., Continental AG, Denso Corporation, Harman International, Hyundai Mobis, Magna International, Inc., and Texas Instruments Incorporated, among others.

Global Market Insights Inc. has recently added a new report on the automotive electronics market which estimates the market valuation for automotive electronics will cross $380 billion by 2027.

The market growth is attributed to the increasing adoption of automotive safety systems, such as airbags, Child Safety Systems (CSSs), pre-tension seatbelts, Occupant Sensing Systems (OSSs), and Whiplash Protection (WLP), in vehicles. These systems are extensively integrated with advanced sensors, processors & microelectronics to provide high accuracy and faster response time in the event of a road crash or accident.

Adding to this, various regulatory bodies are compulsorily mandating automotive manufacturers to integrate passive safety systems in their upcoming vehicles.

For instance, in March 2021, the Union Ministry of Road Transport and Highways, Government of India issued a gazette notification that mandates all new vehicles manufactured after 1st April 2021 to be fitted with dual front airbag systems. The incorporation of front airbag systems will improve passenger safety, thus accelerating the market adoption of automotive electronics over the forecast timeline.

ADAS segment

The ADAS segment held a market share of over 10% in 2020 and is projected to grow at a CAGR of over 10% from 2021 to 2027. Growth is driven by supporting government regulations on the mandatory fitment of advanced safety systems, such as lane departure warning systems, automated emergency braking, blind-spot detection, park assist, and adaptive cruise control systems, in vehicles.

For instance, in February 2021, the German Federal Government introduced a bill that focuses on integrating Level-4 autonomous driving systems in all upcoming vehicles in the country. The introduction of Level-4 ADAS systems in vehicles will add new growth opportunities for automotive electronics manufacturers over the forecast period.

The North America automotive electronics market is anticipated to register 7% CAGR from 2021 to 2027. Growth is credited to the presence of various automotive manufacturers in the region, such as Ford Motors, Tesla Inc., General Motors, and Volkswagen, focusing on establishing EV manufacturing plants in the U.S. These players are heavily investing in the modernization of their automotive manufacturing facilities to increase the production of passenger and commercial vehicles.

Companies operating in the automotive electronics market are continuously involved in various strategies, such as mergers & acquisitions, to accelerate their product offerings and to cater to the high demand in the market. For instance, in December 2020, Magna International Inc. and LG Electronics Inc. announced a joint venture, which will focus on manufacturing on-board chargers, invertors, and e-motors to accelerate their market potential in the electric cars industry.

Major findings

Proliferation of electric vehicles across the globe will spur the automotive electronics market growth over the forecast period. According to the Global EV Outlook 2021 report, there were more than 10 million electric cars registered as of December 2020. These EVs are extensively incorporating body electronics, powertrain components, and safety systems, which will add growth opportunities for automotive electronics manufacturers.

Increasing government regulations and programs on clean energy and to reduce CO2 emissions from vehicles are expected to increase the adoption of advanced powertrains systems. Automotive OEMs are focusing on integrating high-end powertrain solutions, such as power electric drivetrains, engine controllers, and Exhaust Gas Recirculation (ERG) systems, which will further support the segment growth.

Connected platform

The rising adoption of advanced technologies, such as IoT, cloud connectivity, and advanced telematics, in commercial vehicles to communicate in warehouses and tackle highway traffic efficiently will support the automotive electronics market growth.

In March 2020, Tata Motors announced a strategic partnership with Tata Elxsi to develop a unified connected vehicle platform. This partnership will help both the companies to achieve connected vehicle features in their commercial & passenger cars.

The Covid-19 pandemic severely impacted the automotive sector due to the shutdown of various manufacturing facilities, international trade barriers, and disruptions in supply chains. The unavailability of raw materials & components resulted in a decline in the production of automotive vehicles including electric & non-electric cars.

According to a March 2021 press release by the International Organisation of Motor Vehicle Manufacturers (OICA), global automotive production witnessed a 16% decline with less than 78 million vehicles produced in 2020. This is expected to restrain market opportunities for automotive electronics suppliers during the pandemic period.

Automotive electronics market players

Bosch Group,
BorgWarner Inc.,
Broadcom, Inc.,
Continental AG,
Denso Corporation,
Harman International,
Hyundai Mobis,
Magna International, Inc.,
Texas Instruments Incorporated, among others.

Companies operating in the automotive electronics market are continuously focusing on R&D activities to develop technically advanced products than their competitors in the market.

Previous articleModi Inducts 15 Ministers Into Cabinet, 28 Sworn-in As MoS
Next articleCitro├źn BUY ONLINE Provides Seamless Customer Experience While Purchasing


Please enter your comment!
Please enter your name here