According to a Comprehensive Research Report by Market Research Future (MRFR), “Automotive Electronics Market Research Report Information By Type, By Sales, Application, And By Region – Market Forecast Till 2030”, From USD 252.70 billion in 2022 to USD 415.16 billion in 2030, the Automotive Electronics market sector is anticipated to expand at a compound annual growth rate (CAGR) of 7.35% (2022 – 2030).
Automotive Electronics Market Research Insights
Autonomous driving, connected vehicles, electrification of the powertrain, and shared mobility (ACES) are developments in the automotive sector that build on one another. These are all having an effect on and disrupting the whole automobile value chain. They also provide significant contributions to the electrical and electronic (E/E) and automotive software markets, which are expected to grow from $238 billion to $469 billion between 2020 and 2030.
Throughout the same time period, it is expected that the whole automotive industry would expand at a compound rate of 3%, exceeding the growth of the software and E/E sectors by a wide margin. Because of this, the majority of automobile companies and their executives are now focused on software and electronics.
The car industry spends a lot of money on R&D to produce high-performance electronics and energy storage technologies at a competitive price. Manufacturers also depend more on electronics to guarantee excellent safety. By 2020, electronic components will account for roughly 35% of the price of an automobile. Nonetheless, it is estimated that by 2030, automotive electronic components would account for almost 50% of the cost of a car due to technological developments.
Market dynamics predict that as hybrid electric vehicles (HEV) and electric cars (EV) are utilized more often, the need for automotive electronics components will rise. Another method that electronics may satisfy the many objectives of the automotive industry while enhancing reliability and lightning wire harnesses is by substituting electronic components for mechanical ones, such as employing electronic switches rather than relays. Government regulations aimed at reducing traffic accidents and technical advancements related to in-vehicle safety are also expected to boost demand, according to industry forecasts.
Leading industry companies are spending a lot of money on R&D to diversify their product lines, which will propel the automotive electronics market even higher. Market participants are engaging in a variety of strategic activities to increase their global presence in conjunction with significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Players in the Automotive Electronics business must offer reasonably priced items in order to develop and thrive in a market that is getting more and more cutthroat.