Automobile Electronic Components Market - Global Industry Research Analysis

According to Market Research Store, the global automobile electronic components market size was valued at around USD 16.12 billion in 2023 and is estimated to reach USD 27.01 billion by 2032, to register a CAGR of approximately 5.90% in terms of revenue during the forecast period 2024-2032.

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The automobile electronic components report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Automobile Electronic Components Market: Overview

Automobile electronic components are integral parts of modern vehicles, responsible for managing and controlling various electrical systems and functions. These components range from basic devices like sensors, switches, and actuators to more complex systems such as engine control units (ECUs), infotainment systems, electronic stability control (ESC), and advanced driver assistance systems (ADAS). They enhance vehicle performance, safety, comfort, and fuel efficiency by monitoring, processing, and transmitting data across different vehicle systems. With the rise of electric and autonomous vehicles, the reliance on these electronic components is growing rapidly.

The automobile electronic components market is expanding rapidly, driven by the increasing demand for advanced features like connectivity, safety, and automation in modern vehicles. Key growth factors include the rising adoption of electric vehicles (EVs), the development of autonomous driving technologies, and stricter safety regulations requiring features like airbags, collision avoidance systems, and electronic braking systems.

Key Highlights

• The automobile electronic components market is anticipated to grow at a CAGR of 5.90% during the forecast period.
• The global automobile electronic components market was estimated to be worth approximately USD 16.12 billion in 2023 and is projected to reach a value of USD 27.01 billion by 2032.
• The growth of the automobile electronic components market is being driven by growing demand for advanced safety features, infotainment systems, and autonomous driving technologies.
• Based on the type, the engine electronics segment is growing at a high rate and is projected to dominate the market.
• On the basis of application, the safety systems segment is projected to swipe the largest market share.
• Based on the sales channel, the OEM segment is expected to lead the global market.
• By region, Asia-Pacific is expected to dominate the global market during the forecast period.

Automobile Electronic Components Market: Dynamics

Key Growth Drivers

• Increasing demand for advanced vehicle features: The desire for features such as infotainment systems, driver assistance systems, and autonomous driving capabilities is driving the demand for electronic components.
• Advancements in electronics technology: Innovations in semiconductor technology, microcontrollers, and sensors are enabling the development of more sophisticated and affordable electronic components.
• Rising focus on safety and efficiency: Electronic components play a crucial role in enhancing vehicle safety and efficiency, driving their adoption.
• Growing electric vehicle market: The transition to electric vehicles is increasing the demand for electronic components specific to electric powertrains.

Restraints

• High initial investment costs: The development and integration of electronic components into vehicles can be expensive.
• Complexity and technical challenges: Designing and manufacturing electronic components for automotive applications requires specialized knowledge and expertise.
• Regulatory compliance: Adherence to automotive safety and emissions regulations can be complex and costly.
• Supply chain disruptions: Disruptions in the supply chain, such as component shortages or transportation issues, can impact the production and availability of electronic components.

Opportunities

• Expanding applications in emerging markets: The growing automotive industry in emerging markets presents opportunities for the adoption of electronic components.
• Integration with other vehicle systems: Electronic components can be integrated with other vehicle systems, such as telematics and infotainment, to create more comprehensive solutions.
• Development of new electronic components: Innovations in electronics technology can lead to the development of new components with enhanced features and capabilities.
• Growing demand for sustainable transportation: The increasing focus on sustainability is driving the demand for electronic components that contribute to fuel efficiency and reduced emissions.

Challenges

• Market volatility: The market for automotive electronic components can be subject to fluctuations due to economic conditions, technological advancements, and changes in consumer preferences.
• Competitive landscape: The market is highly competitive, with numerous players offering electronic components.
• Technological advancements: The rapid pace of technological advancements can make it difficult for manufacturers to keep up with the latest innovations and maintain a competitive edge.
• Regulatory changes: Changes in automotive regulations, such as emissions standards or safety requirements, can impact the demand for and development of electronic components.

Automobile Electronic Components Market: Segmentation Insights

The global automobile electronic components market is divided by type, application, sales channel, and region.

Segmentation Insights by Type

Based on Type, the global automobile electronic components market is divided into engine electronics, transmission electronics, chassis electronics, and passive safety.

The Engine Electronics segment dominates the automobile electronic components market due to the demand for fuel-efficient and environmentally friendly vehicles. Engine electronics refers to electronic components and systems that control and manage engine operations for optimal performance, fuel efficiency, and emissions control.

Advanced engine control systems are critical in meeting stringent emission standards and improving engine performance, making this a highly sought-after category for both traditional internal combustion engine (ICE) vehicles and hybrid vehicles.

The Transmission Electronics segment is growing steadily due to the increased demand for automatic and dual-clutch transmissions in vehicles. With the shift towards automatic transmissions, especially in luxury vehicles, the role of electronics in transmission systems is becoming more critical.

Chassis electronics refers to electronic systems integrated into the vehicle’s chassis to enhance driving dynamics, comfort, and safety. The Chassis Electronics segment has seen significant growth due to advancements in vehicle safety and performance technologies. With the rise of electric vehicles (EVs) and autonomous driving, chassis electronics are evolving to support complex systems like adaptive suspension, electronic stability control, and advanced driver assistance systems (ADAS).

The Passive Safety segment holds a substantial share of the market as safety regulations around the world mandate the inclusion of airbags, seatbelt pretensioners, and other passive safety features in all vehicles. The development of advanced crash detection systems and side-impact protection systems is also boosting the growth of this segment.

Segmentation Insights by Application

On the basis of Application, the global automobile electronic components market is bifurcated into safety systems, body electronics, infotainment, and powertrain.

Safety systems include both active and passive electronic components that enhance vehicle safety by preventing accidents or mitigating their impact. The Safety Systems segment is experiencing rapid growth, driven by increasing safety regulations and consumer demand for safer vehicles. Features such as automatic emergency braking, lane departure warning, and adaptive cruise control are becoming standard in many vehicles, leading to increased adoption of advanced safety electronics.

The Body Electronics segment is a significant part of the market, driven by consumer demand for convenience features and the growing integration of smart technologies in vehicles. Features such as automated lighting, keyless entry, and climate control systems are becoming standard, pushing the growth of this segment.

The Infotainment segment is growing rapidly as vehicles become more connected, and consumer expectations for in-car technology increase. Infotainment systems are now standard in many vehicles, offering features like touchscreen displays, voice control, and integration with apps like Apple CarPlay and Android Auto.

The Powertrain segment is crucial in the automobile electronics market, especially as manufacturers work to improve fuel efficiency and meet emissions regulations. The rise of electric vehicles (EVs) and hybrid vehicles is also contributing to the growth of powertrain electronics, as these vehicles rely heavily on electronic controls for propulsion.

Segmentation Insights by Sales Channel

In terms of Sales Channel, the global automobile electronic components market is categorized into OEM and aftermarket.

The OEM segment dominates the automobile electronic components market due to the critical role these components play in the manufacturing of vehicles, ensuring compatibility, reliability, and adherence to safety and regulatory standards. OEM components are often custom-built for specific vehicle models, ensuring seamless integration with the overall vehicle architecture.

However, the Aftermarket segment is growing, especially for infotainment upgrades, safety system add-ons, and replacement parts. The increasing vehicle longevity and rising interest in vehicle customization are driving demand in this segment.

Automobile Electronic Components Market: Report Scope

Automobile Electronic Components Market: Regional Insights

• Asia-Pacific is expected to dominate the global market

The Asia-Pacific region holds the largest share of the global automotive electronics market, accounting for approximately 42.3% in 2023. Countries like China, Japan, and South Korea are at the forefront, thanks to their strong automotive manufacturing industries. These nations are leaders in both traditional vehicle production and electric vehicle (EV) development.

The region's dominance is fueled by the increasing consumer demand for advanced automotive technologies, including safety and infotainment systems, particularly in China, which accounts for more than 50% of APAC's market share. The rapid urbanization and rising disposable incomes, along with government policies promoting electric vehicles and autonomous driving, are accelerating the adoption of electronic components in this region.

North America is also a key market, with substantial growth driven by advancements in connected cars and autonomous driving technologies. The U.S. automotive electronics market is expected to grow rapidly from 2024 to 2030, with a particular focus on advanced driver-assistance systems (ADAS) and infotainment. Collaborations between technology companies and automakers, such as those between Qualcomm and U.S. suppliers, are propelling growth in this sector. Connected vehicles and autonomous technologies, coupled with rising demand for safety and comfort features, are shaping the market in this region.

Europe is another significant market, led by countries such as Germany, France, and the United Kingdom. The region is known for its innovation in automotive technologies, especially in electric and hybrid vehicles, which are gaining momentum due to strict environmental regulations.

The European market is projected to grow at a strong CAGR during the forecast period, with a strong focus on integrating advanced safety features like lane departure warnings and collision avoidance systems. Increasing consumer preference for advanced connectivity and safety features is pushing automakers to incorporate sophisticated electronics into new models​.

The Middle East & Africa (MEA) region is gradually emerging as an important market, with growth driven by rising vehicle ownership, government investments in automotive infrastructure, and the demand for safer, more efficient vehicles. Countries like Saudi Arabia and UAE are witnessing increasing adoption of automotive electronics as they modernize their vehicle fleets​.

Recent Developments:

• In March 2023, Infineon Technologies AG, a leading semiconductor company, expanded its collaboration with Delta Electronics, Inc., a global energy management solutions provider. This partnership aimed to create higher-density and more efficient solutions for EV drivetrain applications, such as on-board chargers, DC-DC converters, and traction inverters. By combining their expertise, Infineon and Delta sought to deliver comprehensive solutions that would contribute to the advancement of electric vehicles.
• In January 2023, ZF Friedrichshafen AG, a leading automotive supplier, also made significant strides in EV technology. The company introduced Smart Camera 6, a cutting-edge camera designed for automated driving and safety systems. This advanced camera system is capable of providing 3D surround view and interior monitoring capabilities, enhancing the overall driving experience and safety of electric vehicles.

Automobile Electronic Components Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the automobile electronic components market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global automobile electronic components market include:

• AISIN
• BHAP
• BOSCH
• Continental AG
• Delphi Automotive
• Denon
• Denso Corporation
• Dongfeng Motor Corporation
• Inteva Products
• Joyson Electronic
• Kasai Kogyo
• Kojima Industries
• Panasonic
• S.Valeo
• Sony Corporation
• Tata AutoComp Systems
• Toyoda Gosei

The global automobile electronic components market is segmented as follows:

By Type

• Engine Electronics
• Transmission Electronics
• Chassis Electronics
• Passive Safety

By Application

• Safety Systems

• Body Electronics
• Infotainment
• Powertrain

By Sales Channel

• OEM
• Aftermarket

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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