Automotive Electronics Market to Worth $388.6 Billion by 2028 | OEM and Tier 1 Suppliers to Gain Momentum
Global automotive electronics market was valued at USD 255.09 Billion in 2021, and it is expected to reach a value of USD 388.6 Billion by 2028, at a CAGR of more than 6.2% over the forecast period (2022-2028).
As automotive electronics market continues to evolve and advance, it is important to have outside insight into how major players are performing. In its latest report, “SkyQuest’s Analysis of Automotive Electronics report provides a comprehensive overview of the market. The report examines key trends and shows how automotive electronics are changing the passenger and commercial vehicles market. We also looked at eight different automotive sectors and their role in the overall market. The report is an essential resource for anyone interested in the future of automotive electronics market.
One of the most important findings from our report is that “automotive electronics are continuing to play a more significant role in passenger cars.” This trend has been apparent for several years now, and it seems that the market will continue to grow in popularity. In addition, our study predicts that by 2028, automotive electronics will account for 52% of total vehicle value. This increase in value is due to a number of factors, including advances in connectivity and automation.
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In order to understand how automotive electronics are changing the dynamics of the global automotive electronics market, we conducted a survey of more than 1,000 global automobile manufacturers (GAMs). The survey included questions about innovation areas, such as autonomous driving and electrification, as well as business models for automotive electronics products. This data is essential for companies who are looking to enter or expand their presence in this growing market.
Electric Vehicles are Shaping Global Automotive Electronics Market
The report discusses the major trends in automotive electronics and highlights the opportunities and threats posed by the growth of electrification. The automotive industry is quickly moving towards electrification, with more than 60% of all new cars expected to be electric by 2030. This shift will revolutionize the way we drive, and the proliferation of new electrical technologies will have a significant impact on automotive electronics.
SkyQuest expects a large proportion of light commercial vehicles to be electrified by 2030. In fact, it projects that more than two-thirds of all light commercial vehicles will be powered by electricity by then. The reasons for this increase in electrification of light commercial vehicles are manifold in the global automotive electronics market. For one thing, the cost of batteries and other components has fallen dramatically in recent years, making electric power more affordable than ever before. Secondly, governments are increasingly mandating the use of electric power for transportation infrastructure projects (such as expanding highway lanes or construction sites), which is likely to encourage automakers to invest in hybrid and electric trucks and buses.
According to our study model, the largest market for electrified light commercial vehicles will be India and the United States. This is followed by China (due to government mandates), Japan (because of the high density of motoring environments), Germany (due to stringent emissions regulations), and France (because these countries have high levels of pedestrian and bicycle use).
- Impact of electric Vehicle on Automotive Electronics Market
The first category of automotive electronics to be affected by the transition to electric vehicles will be safety systems. Current safety features, like ABS and stability control, are based on mechanical components that cannot be replaced or upgraded without extensive modifications. In contrast, most aspects of an electric vehicle’s functionality, from sensors and actuators to batteries and motors, can be replaced or improved upon with more modern technology.
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This poses a major challenge for automakers in the automotive electronics market: How do they ensure that their safety systems remain effective as vehicles switch from gas to electric power? The second category of automotive electronics to be impacted by the transition to electric vehicles will be driver assistance systems (DAS). DAS are currently used to provide a variety of functions, including blind spot warning, cross traffic alert, and lane departure Warning. These systems rely on camera data and other sensor data to provide accurate information about nearby objects and roadway conditions. As vehicles switch from gas to electric power, these systems will no longer work reliably due to incompatible power supplies.
OEM and Tier 1 Suppliers to Gain Momentum in Global Automotive Electronics Market
The unprecedented growth for the automotive electronics industry is driven by rising demand for advanced auto-related products and services, especially in the electrified vehicle segment. The booming automobile industry is generating new opportunities for both OEMs (Original Equipment Manufacturers) and Tier 1 suppliers. OEMs are increasingly seeking to develop their own branded electric vehicles and components, while Tier 1 suppliers are expected to benefit from supplying automotive electronics system components to a wider range of OEMs.
The market is witnessing a shift from traditional components and systems to advanced features such as in-car entertainment and navigation systems. This is motivating OEMs and Tier 1 suppliers to develop innovative products that address the needs of end customers. Consequently, these suppliers are gaining momentum in the global automotive electronics market. Some of the key players in the market include Panasonic Corporation, Bosch AG, Continental AG, Denso Corporation, Hitachi Automotive Systems Ltd., Infineon Technologies AG, NVIDIA Corporation, Panasonic Corporation, Philips Electronics N.V., Samsung Electronics Co., Ltd., Sony Corporation, and Toshiba Corporation.
Some of the key opportunities in the automotive electronics market include:
1. Development of electric vehicles and autonomous features: The increasing adoption of electric vehicles worldwide will drive demand for automotive electronics products and services that support the operation of these vehicles, such as navigation systems, drivetrain control systems, crash-avoidance systems, and more.
2. Development of autonomous driving features: As autonomous driving becomes more widespread, there will be a corresponding increase in demands for automotive electronics products that are used in the development and deployment of autonomous driving features such as vehicle recognition software, collision avoidance algorithms, and more.
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Top Players in Global Automotive Electronics Market
- Robert Bosch GmbH (Germany)
- OMRON Corporation (Japan)
- Infineon Technologies AG (Germany)
- HGM Automotive Electronics (US)
- Hitachi, Ltd. (Japan)
- Delta Electronics, Inc. (Taiwan)
- Atotech (Germany)
- ZF Friedrichshafen AG (US)
- Denso Corporation (Japan)
- Koninklijke Philips N.V. (Netherlands)
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