Automotive Electronics Market to Reach USD 441 Billion by 2030, Driven by Growing Demand for Safety, IoT, and AI Integration

Automotive Electronics Market to Reach USD 441 Billion by 2030, Driven by Growing Demand for Safety, IoT, and AI Integration

According to Next Move Strategy Consulting, the global Automotive Electronics Market, is forecasted to reach USD 441 billion by 2030, growing at a robust compound annual growth rate (CAGR) of 8% during the forecast period by 2030. This growth is attributed to the increasing demand for advanced in-vehicle safety features, the widespread integration of Internet of Things (IoT) and Artificial Intelligence (AI), as well as the rise of hybrid and electric vehicles.

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Automotive electronics have become a vital part of modern vehicles, enhancing both performance and safety. These components are essential in the operation of various automotive systems such as electronic fuel injection, ignition, engine management, airbags, entertainment systems, and more. In addition, electronic systems play a significant role in supporting advanced driver-assistance systems (ADAS), infotainment, powertrains, and safety mechanisms such as anti-lock braking systems (ABS) and electronic security systems.

Market Dynamics and Growth Drivers

The increasing adoption of IoT and AI in automotive systems, along with the demand for automated driving technology, is driving significant market growth. Advanced safety systems, including anti-lock braking and electronic security systems, are becoming standard in vehicles, enhancing safety and performance. Furthermore, the rise in electric vehicles (EVs) is boosting the demand for electronic components, as EVs rely heavily on sensors, cameras, GPS systems, radar, LiDAR, and infotainment systems, which require advanced electronics.

Governments and regulatory bodies are also accelerating the shift to electric vehicles through subsidies, tax incentives, and stricter emission control regulations. This trend is propelling the demand for automotive electronics, as EVs require extensive electronic components to manage power systems, charging infrastructure, and onboard technology.

Challenges and Opportunities

While the growth prospects for the automotive electronics market remain strong, there are challenges, including the relatively low adoption of automotive electronics in newly industrialized nations and the increase in overall production costs due to electronic component integration. However, ongoing research and development by automotive manufacturers aimed at producing high-performance, cost-effective electronics and energy storage technologies are expected to create significant opportunities in the market.

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Market Segmentation

The automotive electronics market is segmented by vehicle type, component, application, and distribution channel:

  • Vehicle Type: Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle
  • Component: Sensors, Actuators, Processors, Microcontrollers, Others
  • Application: ADAS, Infotainment & Communication System, Body Electronics, Safety System, Powertrain, Others
  • Distribution Channel: OEM, Aftermarket

The market is geographically segmented into North America, Europe, Asia-Pacific, and the Rest of the World, with Asia-Pacific dominating the global market due to strong manufacturing capabilities in countries like China, Japan, and South Korea. Government incentives in China and South Korea, alongside the growing demand for electric vehicles, are expected to propel further market growth in this region.

Competitive Landscape

The global automotive electronics market features major players such as Omron Corporation, Robert Bosch GmbH, Infineon Technologies AG, Hitachi Ltd., ZF Friedrichshafen AG, Denso Corporation, Aptiv PLC, and Texas Instruments, among others. These companies are adopting various strategies, including new product launches, collaborations, and partnerships, to maintain their competitive edge.

For example, in January 2022, Bosch partnered with IRP Systems to industrialize personal mobility electric motor controllers, aiming to provide high-quality, affordable controllers for electric vehicle manufacturers globally. Similarly, in May 2022, Hitachi Energy launched a new power semiconductor module for electric vehicles using advanced silicon carbide (SiC) technology to improve charging speed and vehicle reliability.

Conclusion

The automotive electronics market is poised for significant growth as vehicle manufacturers continue to prioritize safety, efficiency, and performance through advanced electronic systems. The widespread integration of IoT, AI, and automation, alongside government initiatives supporting electric vehicles, will drive the expansion of the market.

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Next Move Strategy Consulting is a premier market research and management consulting firm that has been committed to provide strategically analysed well documented latest research reports to its clients. The research industry is flooded with many firms to choose from, what makes Next Move different from the rest is its top-quality research and the obsession of turning data into knowledge by dissecting every bit of it and providing fact-based research recommendation that is supported by information collected from over 500 million websites, paid databases, industry journals and one on one consultations with industry experts across a diverse range of industry sectors. The high-quality customized research reports with actionable insights and excellent end-to-end customer service help our clients to take critical business decisions that enables them to move beyond time and have competitive edge in the industry.

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