Global Automotive Electronics demand is anticipated to be valued at US$ 300,332.43 Million in 2022, forecast to grow at a CAGR of 7.30% to be valued at US$ 607,574.4 Million from 2022 to 2032. Growth is attributed to the increasingly stringent safety norms, which are driving innovation and development of sensor technology and signal processing algorithms.
|Data Points||Key Statistics|
|Growth Rate (2016-2021)||3.8% CAGR|
|Expected Market Value (2022)||US$ 300,332.43 Million|
|Anticipated Forecast Value (2032)||US$ 607,574.4 Million|
|Projected Growth Rate (2022-2032)||7.30% CAGR|
Automotive electronics comprises electrically operated systems deployed in vehicles. Electronic fuel injection, airbags, advanced driver assistance and infotainment are some of the areas where automotive electronic systems are primarily used in order to increase the overall efficiency of the combined system. As electric and hybrid vehicles are gaining traction in the market, these systems are likely to become a key focus area for electronic system providers.
OEMs are becoming more dependent on electronics to deliver a high safety level. In 2020, electronic components in the automotive accounted for around 35% of the total vehicle cost. However, with advances in technologies, automotive electronic components are expected to account for around 50% of the total vehicle cost by 2030.
Technological advancements such as electrical active suspensions and power trains for electric vehicles in the automotive industry will increase the application areas for power electronic systems in the automotive sector, which in turn is expected to fuel the growth of the Automotive Electronics Market over the analysis period.
On the contrary, the low adoption of automotive electronics in newly industrialized countries and an increase in the overall cost of end-product due to the integration of automotive electronics are the major factors that are anticipated to limit the growth of the Automotive Electronics market in the near future.