One of the primary reasons driving the growth of the automotive electronic components market is the increased demand for sophisticated electronic components in passenger cars and commercial vehicles. The incorporation of advanced technologies, such as autonomous systems and connected vehicle services, into automobiles, has increased the need for durable electronic components. This factor contributes to the prediction that the market would expand at a healthy rate throughout the course of the projected period. Furthermore, rising vehicle electrification is propelling the automotive electronic components market forward.
The growing trend of vehicle electrification is expected to create a need for advanced electronic components that can handle high power and operate at higher temperatures. This includes components such as power semiconductors, batteries, and other electrical parts. As a result, the demand for these components is expected to propel the automotive electronic components market over the forecast period.
The adoption of advanced electronic components in automobiles has led to several advantages. These include improved vehicle performance, enhanced safety features, and better fuel efficiency. Additionally, the use of these advanced components has also enabled vehicles to become increasingly connected with other systems, thus providing a greater level of convenience and comfort for the driver. During the forecast period of 2021–2031, all of these factors are anticipated to support the expansion of the automotive electronic components market.
Automotive electronic components are advanced electronic components used in vehicles, such as passenger cars, commercial vehicles, and trucks. These components include active and passive devices such as sensors, actuators, power semiconductors, displays, batteries, and other electrical parts. They are used for various functions including engine management systems, driving & safety systems, and body & comfort systems. These components are used to improve vehicle performance, safety, and efficiency.
The automotive electronic components market offers a range of services, including design and engineering, manufacturing, testing, and validation. These services are aimed at providing customers with the most advanced solutions to meet their automotive needs. Additionally, these companies also provide after-sales support services to ensure that the products they supply are working properly. This includes maintenance and repair services, as well as technical support to help customers get the most out of their automotive electronic components.
The global automotive electronic components market is expected to reach a value of USD 183.0 billion by 2031, at a CAGR of 7.1%.
The increasing demand for electric vehicles and connected cars is the major factor driving growth in this market.
One of the primary issues impeding the growth of the automotive electronic components market is the high cost of these components. Additionally, strict regulatory norms regarding emissions and safety standards are also expected to hamper market growth during the forecast period. Moreover, supply chain disruptions due to trade wars and pandemics could also impede market growth over the next decade. The increasing demand for electric vehicles and connected cars is likely to be the major driver of this market. Additionally, advancements in technology and improved safety regulations are also expected to propel the market’s growth over the next few years.
The major players in the automotive electronic components market are Robert Bosch GmbH, Delphi Technologies PLC., Continental AG, DENSO CORPORATION, and NXP Semiconductors N.V., among others. These companies have established a strong presence in the global market due to their advanced product offerings, long-term partnerships with vehicle manufacturers, and aggressive marketing strategies. The automotive electronic components market is witnessing a shift towards advanced technologies such as artificial intelligence (AI) and machine learning (ML). The need to improve vehicle efficiency, performance, and safety is driving this development. Additionally, manufacturers are adopting innovative solutions such as ‘smart’ systems that use AI & ML to power automotive components.
The active components segment Type Emerges as the Most Lucrative Segment
Active components are predicted to expand at a quicker rate than other categories throughout the projection period. This is due to the rising demand for automotive electronics including sensors, transistors, and integrated circuits. Additionally, these components help in reducing emissions and improve the fuel efficiency of vehicles. Furthermore, technological improvements have enabled manufacturers to create innovative active components that give improved performance and safety. Finally, rising demand for electric cars is projected to propel the active components industry forward in the near future.
The engine system segment to Ensure Revenue Maximization
During the projection period, the engine system is predicted to be the fastest-expanding category. This is due to the growing demand for sophisticated engines with higher performance and fuel economy. Additionally, these systems are also equipped with various sensors, transistors, integrated circuits, and other electronic components which are driving their growth in the market. Furthermore, the adoption of electric vehicles is also expected to propel the growth of this segment in the near future. Lastly, advanced driving and safety systems are being developed that use AI & ML technologies to ensure better performance and safety.
The Asia Pacific (APAC) region to render Adequate Financing Avenues
Regionally, Asia Pacific is expected to be the largest market for automotive electronic components, followed by Europe and North America. Countries such as China, India, Japan, and South Korea are anticipated to be the major contributors to the growth of the automotive electronic components market in the Asia Pacific. This can be ascribed to increased automobile manufacturing, greater disposable income, and favorable government regulations. Additionally, initiatives such as ‘Make in India’ are expected to further drive the demand for automotive electronic components in the region.
COVID-19 Impact and Market Status
The COVID-19 pandemic has had an adverse impact on the automotive electronic components market, due to disrupted manufacturing activities and supply chain operations. Moreover, in several countries, the lockdown during the pandemic led to reduced production of vehicles which further hindered market growth. Additionally, decreasing consumer spending and investments have also acted as major hindrances for the market. However, the market is expected to recover and witness steady growth in the near future, due to increasing demand for automotive electronic components from various end-user industries.
Recent Developments in the Automotive Electronic Components Market
• In September 2019, German automotive manufacturer Volkswagen AG introduced a new electronic parking assistant in its cars. This technology uses sensors, cameras, and image recognition software to provide assistance during parking.
• In April 2019, Texas Instruments Incorporated launched a new family of automotive-grade microcontrollers (MCUs) for operation in extreme temperatures. These developments are expected to drive market growth during the forecast period.
Automotive Electronic Components Market Scope
|Revenue forecast in 2031
|USD 183.0 billion
|CAGR of 7.1% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Robert Bosch GmbH, Delphi Technologies PLC., Continental AG, DENSO CORPORATION, and NXP Semiconductors N.V.,
Key Segment of Global Automotive Electronic Components Market
By Type Overview 2021-2031, (USD Billion)
• Active Components
• Passive Components
By Application Overview 2021-2031, (USD Billion)
• Engine System
• Driving and Safety Systems
• Body System
• Entertainment System
By Region Overview 2021-2031, (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa