LOS ANGELES – The global automotive electronics market is anticipated to record a market size of around $430.1 billion by 2026, growing at a 9% CAGR, according to Acumen Research and Consulting.
The uptick is stark: In 2010, electronics accounted for around 35% of the total vehicle cost; however, in the coming years, with ongoing technological advances, it is expected to account for around half of the total vehicle cost. Rising penetration of hybrid electric vehicles (HEV) and electric vehicles (EV) and increased acceptance and transformation of safety systems, such as advanced airbags and antilock braking systems to limit road fatalities, are anticipated to augment market growth.
Rising investments in automobile safety, demand for hybrid and state-of-the-art luxury vehicles, and implementation of government regulations regarding safety standards have also catalyzed automotive electronics’ global demand, says Acumen. Demand for interactive systems such as embedded vision systems capable of real-time image tracking has gained traction, specifically in North America and Europe. For instance, the US Department of Transportation has mandated safety equipment, such as backup cameras in all new vehicles.
Rising demand for in-car infotainment systems is driving the global automotive electronics market as well. This has also increased the demand for in-vehicle data storage to support the access of complex features.
Manufacturers are investing in R&D to develop high-performance automotive electronics at reasonable costs and are transforming energy storage technologies to minimize environment wastes, says the research firm.
OEMs have become more reliant on advanced technology-based electronics, which enables them to offer enhanced safety systems.
The Asia Pacific automotive electronics market was valued at $87.4 billion in 2017. South Korea, Malaysia, Taiwan and Thailand are among the revenue-generating countries for the Asia Pacific market. The majority of demand is in China and Japan. However, the limited number of manufacturers in these countries poses an investment opportunity for regional suppliers to take advantage of local demand, thereby making the rest of the economies in Asia Pacific an attractive place for investors.
North America is also likely to experience noticeable growth over the coming years. The US market is expected to dominate the North American automotive electronics market as a result of Robert Bosch, Continental Corp., TRW Automotive, and Autoliv. Government regulations and strict emission control standards are expected to encourage the power train segment for automotive electronics in the region.