The automotive electronics market is projected to achieve a value of USD 615.3 billion by the year 2030
The automotive electronics sector is anticipated to reach USD 615.3 billion by 2030, growing at an annual rate of 9.3%. This surge is attributed to increasing automobile sales globally and the stringent implementation of regulatory measures by various countries aimed at enhancing vehicle safety and fuel efficiency. Historically, the segment of current-carrying devices dominated the automotive electronics market due to the essential role of electronic components such as switches and fuses in vehicle operation, with a typical car incorporating nearly 200 such devices.
The driver assistance systems segment is expected to witness the most rapid growth in the near future. This trend is driven by the escalating adoption of autonomous vehicles worldwide, which is heightening the demand for sophisticated driver aids. The Asia-Pacific region leads in the consumption of automotive electronic components, spurred by robust vehicle production in countries like Japan, India, South Korea, and China. This region benefits from the ready availability of affordable labor and raw materials. The proliferation of autonomous vehicles, especially those equipped with advanced level 5 automation technologies, is anticipated to boost the demand for automotive electronics further.
These systems are critical for the efficient operation of such highly automated vehicles. The global rise in vehicle sales is a significant growth driver for the sector. Today, automotive electronics constitute approximately 35% of the average car’s total cost, substantially increasing from just 5% in 1970. By the end of this decade, this figure is expected to reach 50%. The adoption of advanced driver assistance systems (ADAS) is creating lucrative opportunities for firms in the automotive electronics field.
These systems are increasingly vital due to their potential to mitigate road accidents caused by driver error, enhancing vehicle and passenger safety. Integrating sophisticated cockpit systems in vehicles marks a significant trend within the automotive electronics industry. Unlike traditional cockpits, which require manual control by the driver, integrated cockpits utilize multiple screens to display vital vehicle information, significantly improving driver convenience and operational efficiency.
Thus, the consistent rise in automobile sales coupled with the enforcement of regulatory standards aimed at making vehicles more efficient and safer are key factors driving the growth of the automotive electronics market.
