The
global Automotive
Electronics Market size is expected to reach USD 392.49 billion by
2028, according to a new report by Grand View Research, Inc. It is anticipated
to register a CAGR of 7.9% from 2021 to 2028. Increasing safety and security
concerns to curb the rising road fatalities in developed and developing
economies across the globe are the factors anticipated to drive the demand for
automotive electronics. The rising demand for electric
vehicles, autonomous vehicles, and state-of-the-art vehicle technology is
also expected to fuel the market growth. Accident data recorder systems,
emergency call systems, and alcohol ignition interlocks are some of the
prominent technologically advanced features that are expected to drive the
market growth over the forecast period.
The availability
of advanced safety systems with features such as blind-spot detection and
automatic emergency braking at lower costs has led to the increased
implementation of these systems. This, in turn, is expected to boost the
adoption of automotive ECUs and sensors used in these systems, subsequently
fueling the market growth. Moreover, these features adhere to government rules
and regulations and are anticipated to pave the way for adopting autonomous
vehicles. The ECUs and sensors are used for controlling the electronic
functions in these vehicles, thereby increasing the demand for these
components.
The
COVID-19 pandemic has negatively impacted the demand for automotive electronics
in 2020. The implementation of lockdowns and social distancing norms globally
has led to losses for industries such as manufacturing, automotive,
entertainment, restaurant, and hospitality. The overall vehicle production
volumes declined globally on a year-on-year basis, mainly due to the decrease
in production volumes in North America and Europe, among other regions.
According to the Organisation Internationale des Constructeurs d'Automobiles
(OICA), global automobile production dropped by more than 15% i.e., 77.6
million units in 2020 as compared to 91.7 million units in 2019. However, as
governments begin to gradually relax lockdown norms and allow businesses to
operate with mandates of social distancing, the market can expect a period of
respite for the short-term due to the growing demand for cars from the
middle-class populations.
The
market for automotive electronics is also affected by the recent semiconductor
chip shortages globally. The semiconductor chip supply crunch, powered by the
pandemic supply-chain gyrations and rising demand, has majorly affected the
automakers, forcing them to temporarily halt production in their factories. In
April 2021, General Motors and Ford announced plans to temporarily shut down
their factories due to a shortage of semiconductor chips. The chaotic ordering
from the automotive OEMs makes it harder for chipmakers to understand where
they need to allocate supply to meet the real and short-term needs.
The
Asia Pacific regional market captured around 41% of the overall automotive
electronics demand in 2020 and is estimated to register the highest CAGR of
8.3% over the forecast period. The demand in the Asia Pacific region is largely
fulfilled by China, India, and Japan. China is the world's largest
manufacturing hub and one of the fastest-growing economies. The Chinese
automotive manufacturers are leveraging favorable market conditions to take the
lead and dominate the market. Moreover, the Make in India campaign is expected
to draw investments in the automotive sector, thus boosting the demand for
automotive electronics.
Related Press
Release @ Automotive
Electronics Market Report
Automotive Electronics Market Report Highlights
- In terms of
component, the sensors segment is estimated to expand at the highest CAGR
of around 9.2% over the forecast period. This can be attributed to
favorable government initiatives for passenger safety and security in
various regions
- In terms of
application, the safety system emerged as the largest segment in 2020.
Increasing customer awareness about technological changes related to
safety equipment in vehicles is expected to act as a potential driver for
the growth of the safety systems segment
- In terms of
sales channel, the OEM segment emerged as the largest segment in 2020
owing to the increased durability and shelf-life of electronic components
- The Asia
Pacific region held the largest market share in 2020. This can be
attributed to the increasing production of vehicles in India, China, and
Japan
About Us:
Grand
View Research, Inc. is a U.S. based market research and consulting company,
registered in the State of California and headquartered in San Francisco. The
company provides syndicated research reports, customized research reports, and
consulting services. To help clients make informed business decisions, the
company offers market intelligence studies ensuring relevant and fact-based
research across a range of industries including technology, chemicals,
materials, healthcare and energy.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc
Phone: 1-415- 349-0058
Toll Free: 1-888- 202-9519
Email: sales@grandviewresearch.com
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