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Infotainment, fuel consumption, driver assistance, and vehicle safety are just some of the many aspects of modern automotive electronics design that rely on complex electronic components. The global automotive electronics market revenue is expected to rise to US$615.3 billion by 2030 from US$235.7 billion in 2019, at a 9.3% CAGR during 2020–2030, reports P&S Intelligence.
Asia-Pacific is the largest automotive electronics market, and it is also projected to grow the fastest in the near future, reveals P&S Intelligence. The region accounts for the highest automotive production and sales on account of its huge population, which is witnessing a rise in its purchasing power. In addition, due to the government efforts to curtail air pollution levels, the demand for electric vehicles is rising, especially in India and China, adds the market research firm.
Global automotive electronics market trends
Of course not all reports are doom and gloom. One of the vital factors that are propelling the growth of the automotive electronics industry is technological advancements. The arrival of autonomous or driverless cars, in confluence with the launch of cost-efficient electric vehicles with enhanced features, is impelling the market growth. Moreover, a shift towards luxury vehicles which are equipped with in-vehicle entertainment devices, offering a relatively more sophisticated and interactive user experience is stimulating the demand for automotive electronics across the globe. Apart from this, advanced computing technologies including parking assistance, electrical suspensions, braking and steering systems are being applied in cars to decrease accidents and fatalities. Moreover, manufacturers are introducing product innovations like active-window display, remote vehicle shutdown, exhaust emission control and reconfigurable body panels to expand their consumer base.
In the past, the automotive electronics market was dominated by the current-carrying device category, based on component type. Even an automobile not integrated with advanced sensors contains at least 200 electronic modules, for which current-carrying devices are a prerequisite. In addition, the installation rate of position sensors in clutch plates, steering, pedals, and hybrid engines and of temperature sensors is driving the demand for current-carrying devices.
Landscape of players and value
The days when OEMs comprehensively defined specifications and suppliers delivered them may be nearing an end. Neither OEMs nor traditional suppliers can fully define the technology requirements of new systems. Codevelopment between OEMs and suppliers is expected to become not just prevalent but also necessary. In addition, companies are expected to enter the space more boldly—something that will become easier as electronic component sourcing become more distinct.
As automotive electronics manufacturers and their suppliers are coming under increasing pressure to deliver advanced electronic solutions quickly and in a cost-effective manner, sourcing would be more competitive and scaling less complex, and it would provide a standardized platform for electronic components while maintaining competition.
The automotive industry has reached a fork in the road: one path leads to reinvention and success, while the other maintains the current status quo. Business leaders will only have a brief window of opportunity to reimagine their core operations. To ensure their survival and success now and in the future, it’s time for automotive electronic industry players to act.
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