The Global "Automotive Power Electronics Market" is expected to grow at a CAGR of 7% during the forecasting period (2022-2029).
This is mainly due to continuous technological advancements coupled with adoption of advanced safety-systems such as Automatic Emergency Braking (AEB), Lane Departure Warning (LDW), and among others.
The global Automotive Electronics market growth is primarily driven by various technological advancements happening in the industry coupled with launch of new and innovative electronics for automobiles by the market players. With the enhancement of vehicular systems that include powertrain, safety, comfort, and driving systems, advanced sensors, semiconductors, and related component technologies, the global market is expected to witness significant growth and will provide tremendous growth opportunities for market players over the forecast period.
Moreover, technologies like advanced driver-assistance systems (ADAS) improves the driving experience, while enhancing the vehicle and pedestrian safety. It is becoming an integral part of modern automobiles and is now adopted in passenger cars as well as commercial vehicles which are driving the growth of this market.
In addition, vehicle production is increasing owing to the rising demand for comfort, rise in penetration and demand for ADAS equipped vehicles, government norms regarding pollution & steps taken to implement electric vehicles, and increase in demand for vehicle comfort. Therefore, rise in number popularity and increase in sales of EV is expected to drive the market over the forecast period.
However, various microeconomic factors and high initial cost might hinder the market growth. For instance, India’s passenger vehicle industry suffered its worst sales performance in nearly 19 years in 2019; as a slowing economy, higher ownership costs, and floods in some states deterred buyers.
By application, the global automotive electronics market is segmented into ADAS and safety systems, Infotainment, body electronics, and powertrain.
In 2018, ADAS and safety systems segment accounted for the majority in the market and is expected to grow at significant rate during the forecast period. Government regulations in various countries, towards mandatory deployment of advanced intelligent systems in vehicles is a major factor driving growth of the global advanced driver assistance systems (ADAS) market. In addition, increasing number of road accidents and increasing need for advanced vehicle safety system are some other factors driving growth of the global market.
By vehicle type, the global Automotive Electronics market is segmented into passenger vehicles and commercial vehicles. In 2018, Passenger vehicles accounted for the majority share in the market. This is mainly due to the rise in the demand for the technologically advanced electronic products to increase safety and reduce road accidents. In addition, demand for in-car infotainment systems owing to efficiency, comfort, and convenience is estimated to fuel the market growth further.
By geography, the global Automotive Electronics Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
In 2018, APAC dominated the global Automotive Electronics market. In addition, China is the leading country in the region as well as globally. Most of the product demand in Asia Pacific is fulfilled by China, India, South Korea, and Japan. However, the limited number of manufacturers poses an excellent investment opportunity for regional suppliers to capitalize on the local demand, thereby making rest of the region an attractive place for investors. The increasing awareness about safety features in modern vehicles and OEM initiatives to provide enhanced safety & comfort to the consumers are driving the utilization of several electronic systems in the ADAS, safety, braking, steering systems, etc.
In 2018, North America was second-largest market for automotive components. Owing to the rise in accidents, the enactment of stringent safety regulations and the increasing vehicle safety concerns among the consumers are expected to drive the global market. To meet the increasing standards for safety features in the vehicles, major ADAS manufacturers in the market have started investing in R&D activities. For instance, Continental AG invested USD 59 million for building a new R&D center in Queretaro, Mexico. Moreover, consumers are gaining awareness about the advanced safety features and technologies, they are indicating interest in improving the safety systems of their vehicles.
Global Automotive Electronics Market is fragmented with the presence of global and regional players in the market. The market players in the Automotive Electronics market are focusing on expanding through strategic interventions, such as acquisitions, collaborations, expansion and launching advanced products in the Automotive Electronics market. To that end, besides expanding their presence, companies are expected to formulate effective distribution strategies to make their presence felt in the upcoming markets for Automotive Electronics.
Intense rivalry among top players in the market has started fierce competition at various levels for setting a low price, driving aggressive marketing strategies, and new and innovative product launches as per consumers’ preference.
Some major players in the market are Panasonic Corporation, Continental Corporation, Robert Bosch GmbH, Autoliv, Inc., Samsung Group, Delphi Technologies, Denso Corporation, ZF Friedrichshafen AG, Magna International, Altera Corporation, Infineon Technologies, Lear Corporation, Hitachi Automotive Systems, Voxx International Corporation, Faurecia, Valeo, and among others.
In April 2018, Robert Bosch developed a highway assist system to help drivers keep their vehicle in lane in order to mitigate accident. The new Bosch highway assist system is installed on the 2018 Maserati Ghibli, Levante, and Quattroporte.
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