ALBANY, NY—The global automotive electronics market is likely to experience intense competition due to the presence of large number of players operating in the market. Entry of new players in the global market is expected to increase competition in the market. Leading companies in the market are taking strategic initiatives such as partnerships, mergers and acquisitions, and joint ventures to maintain their position in the global market. They are also focusing on investing in research and development activities to develop innovative solutions. ON Semiconductor Corp, Maxim Integrated Products Inc., OMRON Corporation, Texas Instruments Inc., and Hitachi Ltd. are some of the leading players operating the global market.
According to Transparency Market Reserach, the global automotive electronics market is projected to reach US$5.04 bn by the end of 2022. In 2017, the market was valued at US$3.53 bn. During the forecast period between 2017 and 2022, the market is projected to expand at 7.4% CAGR.
Based on types of vehicles, the mid-sized passenger’s cars segment is expected to dominate the market in the coming years. In 2017, this segment held 26.2% share in the global market. On regional front, Europe is projected to lead the global market. In 2017, Europe held largest share in terms of revenue. North America is also considered one of the key regions for the growth of automotive electronics. Moreover, emerging economies in Asia Pacific are also offering lucrative growth opportunities for the market.
Growing popularity of electric vehicles to drive automotive electronics market
Globally, the demand for better safety while driving has drawn attention largely. Various governments are taking effective measures to reduce the number of accidents taking place. In this scenario, the demand for automotive vehicles have increased that are equipped with GPS, navigation, information features, and entertainment that are transmitted over a wireless network. Moreover, introduction of advanced drivers assistance, electronic fuel injection, telematics, airbags, and other similar products has further boosted the demand in the automotive electronics market.
Adding it further, technological advancements such as electrical active suspensions for electric vehicles is also expected to push the applications of power electronics in the automotive industry. Rising popularity of hybrid and electric vehicles, automotive electronics are expected to draw the attention of automotive electronics manufacturers that will benefit the market’s growth.
Loss of critical vehicular information may deter market growth
Even though the demand for automotive electronics is bourgeoning across the globe due to increasing preference for these vehicles, but these are several restraining factors that could hinder the growth of this market. One of the major factor is loss of critical vehicular information gathered through automotive electronics due to increasing vehicular connectivity and system complexity. However, efforts are being made to find solutions against information hacking and cybercrime that might help in mitigating the risk attached with data loss. For instance, Automotive Electronic Systems Innovation Network (AESIN) has made efforts to resolve this issue, which not only secure important information but also it, will also benefit market’s growth.
The information presented in this article is based on a TMR report, titled “Automotive Electronics Market (Vehicle Type—Compact Passenger Cars, Mid-sized Passenger Cars, Premium Passenger Cars, Luxury Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles; Sales Channel—OEM and Aftermarket; Application—Advanced Driver Assistance Systems, Body Electronics, Entertainment, Powertrain, and Safety Systems)—Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017-2022.”