Global Automotive Electronics Market Showing Signs of Recovery Post COVID-19—Projected to Reach USD 340.4 Billion by 2027

The Leading Players Operating in the Global Automotive Electronics Market are Aisin Seiki Co. Ltd, Altera Corporation, American Axle & Manufacturing Inc., Atmel Corporation, Autoliv Inc., Bosch Group, Broadcom Inc., Continental AG, Delphi Technologies, Denso Corporation, Faurecia, Hitachi Automotive Systems, Hyundai Mobis, Infineon Technologies, Lear Corporation, Magna International Inc., Panasonic Corporation, and other prominent players.

Noida, India, July 13, 2021 (GLOBE NEWSWIRE) -- A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global automotive electronics market was worth USD 205.1 Billion in 2020 and is further projected to reach USD 340.4 Billion by 2027, at a CAGR of 8.2% during the forecast period (2021-2027). Global automotive electronics market growth can be attributed to several factors, such as the growing demand for electric and hybrid vehicles, and the availability of advanced safety systems with features such as automatic emergency braking and parking assistance at an affordable price. Additionally, the increasing automotive production in growing economies around the world and the emergence of technologies, such as automatic emergency braking, airbags, parking assistance systems, and lane departure warning, are also driving the growth of the global automotive electronics market.

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Growing demand for electric and hybrid vehicles is driving the growth of the Global Automotive Electronics Market

The demand for electric and hybrid vehicles is growing day by day with increasing environmental and government regulations. As the number of automobiles on the road continues to rise year after year, governments and businesses are attempting to limit carbon emissions. According to the United States Environmental Protection Agency, a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year. European Environmental Agency figures show that nearly 30% of all EU CO2 emissions are generated by transport, with road transport accounting for more than 72%. Also, passenger cars account for more than 60% of the total road transport CO2 emissions.

Electric and hybrid vehicles are seen as an alternative to fossil fuel-based vehicles to reduce carbon emissions and meet the Paris Agreement’s targets. The Paris Agreement was signed in 2018 by more than 200 countries around the world, including the U.S., China, and others. The Paris Agreement aims to reduce carbon and green house gas emissions in order to limit the temperature increase to 2 degrees Celsius above pre-industrial levels by the end of the century while also looking at ways to limit the increase to 1.5 degrees Celsius. According to European Federation for Transport and Environment, an electric car with its battery produced in the same country it is driven will emit 80% less CO2 than diesel vehicles and 81% less than petrol vehicles. An electric car with its battery manufactured in China and driven in Poland would still emit 22% less CO2 than diesel and 28% less than petrol. Additionally, low or no fossil fuel requirements, increased government support, and strict government regulations on ICE (internal combustion engines) have contributed to the increasing demand for electric and hybrid vehicles. These factors are also contributing to the growth of the global automotive electronics market.

Integration of latest technology is expected to support the growth of the global automotive electronics market during the forecast period

Road accidents are one of the major causes of accidents and deaths around the world. According to the World Health Organization (WHO), road accidents claim the lives of almost 1.3 million people every year. Road accidents are the leading cause of death for children and young adults aged 5 to 29. The WHO further states that between 20-50 million people every year suffer non-fatal injuries in road accidents with many of them resulting in permanent disability. More than 93% of the deaths in road accidents occur in low to middle-income countries which have approximately 60% of the world's vehicles. Companies are constantly working to come up with technologies to reduce the threat of road accidents. With the development of technologies such as automatic emergency braking, airbags, parking assistance systems, and lane departure warnings, the number of fatalities in road accidents has decreased to a great extent. Hence, the cost-effective integration of these technologies in vehicles is expected to be a major driver for the growth of the global automotive electronics market during the forecast period.

The passenger car segment held the largest share in the global automotive electronics market in 2020
Based on vehicle types, the global automotive electronics market is segmented into passenger cars and commercial vehicles. The passenger car segment accounted for the largest market share in 2020. According to the European Automobile Manufacturers Association, there were a total of 242.7 million passenger cars on road in the year 2019. Eurostat 2018 indicates that Luxembourg had 676 cars per 100 citizens in the EU in 2018. The increasing demand for automotive electronics components, such as powertrain solutions, infotainment systems, and safety systems, has also supported the growth of the passenger car segment in the global automotive electronics market.

The Global Automotive Electronics Market: Regional Insights

The global automotive electronics market is segmented into five regions: North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region held the largest market share in the global automotive electronics market in 2020. The Asia-Pacific region accounts for more than 57% of total global motor vehicle production, according to OICA (International Organization of Motor Vehicle Manufacturers). The Asia-Pacific region did reasonably well compared to the other regions in 2020, with production only declining by 10%, while other regions registered a production decline of more than 20%. China, the largest automotive electronics market in the APAC region, registered a decline of only 2% in vehicle sales while South Korea’s motor vehicle sales grew by 6% according to OICA. The presence of key market players and multiple developing countries, along with the increasing disposable income of the people in the APAC countries, have further led to the large market share of the region in the global automotive electronics market.

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COVID-19 Impact on Global Automotive Electronics Market

The COVID-19-induced pandemic has negatively affected the global automotive electronics market around the world. The demand for automotive vehicles suffered significantly as manufacturing went down by almost 16% in 2020 with less than 78 million vehicles manufactured globally. International Organization of Motor Vehicle Manufacturers – OICA’s president, Mr. FU Bingfeng called 2020 “the worst crisis ever to impact the automotive industry, a key sector of the world economy.”

According to OICA, Europe represents an almost 22% share in global production and it registered an average production decline of almost 21%. Also, the NAFTA region (North American Free Trade Agreement) region witnessed a production decline of 20% with the U.S. production declining by 19%. The Asia-Pacific production declined by 10% with China’s production declining only by 2%. Moody’s, the credit rating agency, has predicted a 7.7% year-on-year increase in the sales of automotive vehicles, however, Moody’s does not expect sales to reach the pre-COVID peak level of 95 million units until 2025. The vaccination drive has however, contributed significantly towards the recovery of the market. Nevertheless, the negative impact of the second wave of the COVID-19 and the looming threat of the third wave of the pandmic are expected to hamper the recovery of the market in the foreseeable future,

The Leading Players Operating in the Global Automotive Electronics Market are Aisin Seiki Co. Ltd, Altera Corporation, American Axle & Manufacturing Inc., Atmel Corporation, Autoliv Inc., Bosch Group, Broadcom Inc., Continental AG, Delphi Technologies, Denso Corporation, Faurecia, Hitachi Automotive Systems, Hyundai Mobis, Infineon Technologies, Lear Corporation, Magna International Inc., Panasonic Corporation, and other prominent players. The key players are looking to provide cost-effective modern solutions to gain an upper hand in the global automotive electronics market. The companies are also looking to partner with other companies to leverage their expertise in different areas and to come up with innovative solutions and attract customers for gaining more market share.

Recent Developments in the Global Automotive Electronics Market

In June 2021, Continental and Elektrobit (EB) announced the first in-vehicle integration of Alexa Custom Assistant. The integration of Alexa Customer Assistant will allow automakers to access Alexa’s advanced AI to create their own branded, intelligent assistants. The collaboration brings Continental’s automotive electronics together with EB’s software expertise.

In June 2021, State officials announced that Duckyang, a South Korean maker of automotive electronics, will set up its first U.S. factory in Northern Georgia. The company plans to invest USD 10 million in the establishment of the new factory and is expected to create 285 new jobs. The plant will manufacture battery parts for SK Innovation, a South Korean company, that will supply electric vehicle batteries to Ford and Volkswagen. Duckyang currently supplies cockpit modules to Hyundai.

Scope of Report

By Vehicle Type

Ø Passenger Cars

Ø Commercial Vehicles

By Applications

Ø ADAS (Adaptive Cruise Control)

Ø Blind Spot Detection

Ø Parking Assistance

Ø Automated Emergency Braking

Ø Infotainment & Communication

Ø Safety systems

Ø Others

By Sales

Ø OEM

Ø Aftermarket

By Component

Ø Electronic Control Unit

Ø Sensors

Ø Current-Carrying Devices

Ø Others

By Region

Ø the Asia-Pacific

Ø North America

Ø Europe

Ø the Middle East & Africa

Ø Latin America

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