The Global Automotive Electrical and Electronics Market is expected to see a large influx in size in the coming years. By the year 2024, this market is expected to be valued at more than $390 billion US dollars, which is a significant compound annual growth rate between 2016 and 2024. An increased demand for safer vehicles that are outfitted with electric and electronic safety equipment is expected to surge the growth of this market during the forecasted time period.
The global automotive electric and electronics market is comprised of electrically operated systems that are built into vehicles. Some of the most common areas in which automotive electronics are applied include fuel injection systems, airbags, advanced driver assistance systems, as well as infotainment systems. These electronic systems improve the overall efficiency of vehicles, not only making them safer, but also making them more enjoyable for drivers to use.
There are several factors that are expected to fuel the growth of the global electric and electronics market during the forecasted time period.
Of all of these factors, the constant demand for increased safety is expected to largely drive the growth of this market worldwide. The rise in the population and the increased availability of drivers has lead to more traffic on roadways. As such, there are more incidences of traffic accidents. This has spurred the demand for safer vehicles that can help reduce the amount of collisions.
Moreover, electrical power trains, wheels, parking assistance and electrical suspensions will also boost the size and value of this market in the coming years. Additionally, the increased interest in environmental sustainability, coupled with the rising consumer demand for more advanced infotainment systems will also increase the need for more complex automotive electronics systems, which will also drive the growth of the global automotive electric and electronics market.
While this automotive electric and electronics industry is expected to see significant growth in the coming years, there are certain factors that could prevent the market from growing to its fullest potential. These factors include stringent government regulations regarding the safety of vehicles, as well as the protection of complex electronic systems from damaging electrical hazards.
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The global automotive electric and electronics market is segmented by application. Electric and electronics products are applied in vehicles in a number of ways, including:
- Body electronics
- Advanced driver assistance systems, also known as ADAS
- Power trains
- Safety systems
During the forecasted time period, the ADAS segmentation is expected to see the most significant amount of growth. This will likely be due to the development of signal processing algorithms, as well as more advanced sensor technology, both of which have paved the foundation for the projected rapid growth of this application segmentation. Heightened safety standards are expected to contribute to this segment’s augmentation in the coming years.
The global automotive electric and electronics market can be further segmented by region. The regions that this market is comprised of include:
- North America
- Latin America
- Asia Pacific
- The Middle East
North America has dominated this market in recent years, as it has accounted for the largest market share. It is projected that this region will continue to see significant growth in the next few years. This will largely be due to the increased consumer desire for safer vehicles, and vehicles that offer more advanced infotainment features.
Asia Pacific is also expected to experience rapid growth in the automotive electric and electronics market during the forecasted time period. The increase in population, a larger per capita income, as well as investments by key players in the market in this region are all factors that will augment the industry.
Emerging economies, such as India, China and Brazil are expected to see a significant boom in the automotive electric and electronics market, particularly during the second half of the forecasted time period. The growth in these areas will likely be due to increased spending on entertainment systems in vehicles, such as satellite radios, MP3 players, as well as rear seat entertainment systems, which will all fuel the demand for automotive electric and electronics products.
The global automotive electric and electronics market is highly competitive. This high competition is largely due to the large presence of key industry players, both domestically and internationally. Companies are continuing to invest great sums of money in the research and development of more cutting edge products in order to gain a competitive edge in the market. As such, this market will not only continue to grow in the coming years, but it will also remain a highly competitive industry.
Some of the most prominent key players in the global automotive electric and electronics market include Robert Bosch GmbH, OMRON Corporation, Infineon Technologies AG, Hitachi Ltd, HGM Automotive, Delta Electronics, Atotech Deutschland GmbH and ZF TRW. Other key players in the global automotive electric and electronics market include Texas Instruments, Altera, Avago Technologies, Infineon Technologies, Atmel, AG, TRW and Wipro.
Outlook of the Automotive Electric and Electronics Market on a Global Scale
Globally, the automotive electric and electronics market is expected to see significant growth during the forecasted time period. This growth will largely be due to the increase in demand for safer vehicles, as well as more advanced infotainment features. North America and Asia Pacific are projected to experience some of the most significant growth in the next few years. Given the highly competitive nature of this market and the notable key players that contribute to it, it is safe to assume that anyone who is interested in investing in this industry will see positive gains in the coming years, making it a wise investment opportunity for anyone who decides to invest in it.