PUBLISHER: The Business Research Company | PRODUCT CODE: 1672295
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672295
Automotive electronics is a specialized field within electronic engineering dedicated to designing electrical and electronic systems specifically for use in vehicles. These systems aim to improve driving experiences, fuel efficiency, and overall comfort for both drivers and passengers.
Key types of automotive electronics encompass advanced driver assistance systems, body electronics, entertainment systems, powertrain components, safety systems, and other specialized functionalities. The powertrain comprises components such as electronic control units, sensors, and current-carrying devices that propel the vehicle forward. Different vehicle categories, including light commercial vehicles, passenger vehicles, heavy commercial vehicles, among others, are distributed through original equipment manufacturers (OEMs) and aftermarket channels.
The automotive electronics market research report is one of a series of new reports from The Business Research Company that provides automotive electronics market statistics, including automotive electronics industry global market size, regional shares, competitors with an automotive electronics market share, detailed automotive electronics market segments, market trends and opportunities, and any further data you may need to thrive in the automotive electronics industry. This automotive electronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive electronics market size has grown strongly in recent years. It will grow from $295.42 billion in 2024 to $320.36 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to strong economic growth in emerging markets, an increase in demand for commercial vehicles, increased demand for passenger vehicles, and a rise in disposable income.
The automotive electronics market size is expected to see strong growth in the next few years. It will grow to $454.87 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to the growing demand for electric vehicles, increasing automobile production, rising government support and increasing demand for safety features in automobiles. Major trends in the forecast period include artificial intelligence technology, the launch of advanced power electronics, integration of augmented reality (AR), new and innovative product introduction, strategic partnerships and collaborations to expand their product portfolio and drive revenues.
The growing adoption of electric vehicles is anticipated to drive the expansion of the automotive electronics market in the future. Electric vehicles are powered by motors that utilize electricity stored in batteries. Moreover, the push to combat COVID-19 and the goal of achieving net-zero emissions have led to a sudden rise in the adoption of EVs and hybrid vehicles. Automotive electronics play a crucial role in electric vehicles by facilitating the electric powertrain system that delivers high power to the vehicles. For example, in August 2024, a report from the U.S. Energy Information Administration (EIA), a U.S.-based agency, indicated that the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in the U.S. rose from 17.8% of total new light-duty vehicle (LDV) sales in Q1 2024 to 18.7% in Q2 2024. Thus, the increasing penetration of electric vehicles is driving the growth of the automotive electronics market.
Government support is anticipated to be a significant factor driving the growth of the automotive electronics market. Governments worldwide are increasingly providing substantial support and incentives to encourage the development and adoption of electric vehicles (EVs) and advanced automotive technologies. These initiatives encompass financial incentives, tax breaks, research funding, and regulatory measures aimed at reducing emissions and enhancing vehicle safety. For instance, in July 2023, Chinese authorities announced measures aimed at stimulating vehicle and electronics sales to support economic recovery. In July 2022, the Brazilian government approved a decree for a new program, Inovar-Auto, designed to promote innovation in vehicle technology. Inovar-Auto encourages industry competitiveness by incentivizing automakers to produce more efficient, safer, and technologically advanced vehicles while investing in Brazil. Robust government support is expected to expedite the shift to electric and connected vehicles, thereby driving the demand for automotive electronics.
Leading companies in the automotive electronics market are concentrating on the development of electronic components, such as high-amperage surface-mount fuses, to improve reliability and safety in automotive and industrial electronic systems. High-amperage surface-mount fuses are compact electrical components designed to protect circuits by managing high current ratings and preventing overloads and short circuits. For example, in October 2023, Littelfuse, a U.S.-based manufacturer of circuit protection and electronic components, introduced the Ultra-High Amperage SMD Fuse Series, aimed at circuit protection in various applications, especially in automotive and industrial electronics. These fuses are notable for their ability to handle high current ratings while maintaining a compact surface-mount design. This series enhances the reliability and safety of electronic systems by preventing overloads and short circuits. Additionally, the fuses have a low profile and are well-suited for high-density applications, making them ideal for contemporary electronic devices.
Product launches represent another key trend in the automotive electronics market, with major players actively introducing new and innovative products to expand their product portfolios and bolster their market positions. In November 2022, Melexis, a Belgium-based microelectronics engineering company, unveiled a new series of integrated pressure sensor chips tailored for automotive engine management. The MLX90824 in this series measures absolute pressure and delivers a SENT protocol digital output signal, while the MLX90822 provides an analog voltage output signal. These devices are factory-calibrated to measure pressure over a full-scale range of 1 bar to 4 bar, showcasing Melexis' commitment to introducing cutting-edge products in the automotive electronics market.
In August 2022, MKS Instruments, a US-based manufacturer of industrial process instruments, acquired Atotech for $4.4 billion in cash and MKS common stock. This strategic acquisition of Atotech, a Germany-based company specializing in automotive electronics, positions MKS to expedite the development of future generations of advanced electronic devices.
Major companies operating in the automotive electronics market include Denso Corporation, Robert Bosch GmbH, ZF Friedrichshafen AG, Hitachi Ltd, Aptiv PLC,Continental AG, Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics N.V., Texas Instruments, Delphi Automotive, Mahindra Electric, Tata Elxsi, BYD Auto, Huawei Technologies, Tencent Auto, Baidu, Contemporary Amperex Technology Co. Limited, Panasonic Automotive, Aisin Seiki Co., Ltd, Sony Corporation, Pioneer Corporation, Electro 80, Autron Automotive Electronics, REDARC Electronics, Integrated Micro-Electronics, Inc. (IMI), Valeo, Faurecia, Actia Group, Exagan, Hella GmbH and Co. KGaA, Brembo, Marelli Holdings Co., Ltd., Renesas Electronics Europe, Smiths Group, AVTOVAZ, Elektrobit (EB) Russia, Autoliv Romania, Skoda Auto, Honeywell Czech Republic, Metalenz Inc, Sila Nanotechnologies, Actnano, Citrine Informatics, PreAct Technologies, Manufacturing Technology, Inc, Nidec Mobility Brazil Ltda, Shenzhen Vigreat Electronic Co., Ltd, Maidstone Auto Electrical, Sonic Vision Technologies Pty Ltd
Asia-Pacific was the largest region in the automotive electronics market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automotive electronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The automotive electronics market consists of sales of adaptive cruise control, navigation systems, adaptive light control, actuators, processors, and microcontrollers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Electronics Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive electronics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive electronics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive electronics market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.