Automotive Electronics Market Size, Share & Trend Analysis growing at a CAGR of 8.6% from 2024 to 2030
The global automotive electronics market size was estimated at USD 262,602.1 Million in 2023 and is projected to reach USD 468,165.7 Million by 2030, growing at a CAGR of 8.6% from 2024 to 2030. The increasing integration and implementation of advanced safety systems such as automatic emergency braking, airbags, parking assistance systems, and lane departure warning to decrease road accidents is expected to favor demand over the forecast period.
Key Market Trends & Insights
- In terms of region, Asia Pacific was the largest revenue generating market in 2023.
- Country-wise, Kuwait is expected to register the highest CAGR from 2024 to 2030.
- In terms of segment, current carrying devices accounted for a revenue of USD 105,630.0 million in 2023.
- Sensors is the most lucrative component segment registering the fastest growth during the forecast period.
Market Size & Forecast
- 2023 Market Size: USD 262,602.1 Million
- 2030 Projected Market Size: USD 468,165.7 Million
- CAGR (2024-2030): 8.6%
- Asia Pacific: Largest market in 2023
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Moreover, features such as emergency call systems, alcohol ignition interlocks, and accident data recorder systems are rapidly adopted to safeguard in-vehicle passengers and are expected to drive market growth over the forecast period.
The increasing demand for electric vehicles is driving the demand for automotive electronics. Many people are switching from fuel ignited vehicles to electrics vehicles, and this is increasing the demand for systems. It has increased the demand for battery management systems and electric powertrains of electric vehicles. However, apart from the growing demand for electric vehicles, government regulations and funding have also impacted positively the automotive electronics market growth.
Government imposed safety regulations which made automakers around the world improve the safety of vehicles and reduce the number of accidents on the roads, which boosts the demand for automotive electronics. Government safety regulations can also be used to support the development of new technologies, such as electric vehicles, which can improve efficiency and reduce emission from vehicles. For instance, China has laid down regulations focusing on reducing energy consumption of passenger cars and maximizing the sales of new energy vehicles, including plug-in hybrid and fully electric cars. Governments across various countries are providing annual tonnage tax and automobile tax to promote the use of electric vehicles.
Technological advancements have positively impacted the growth of automotive electronics. Advancements in areas such as automotive powertrain electronics, autonomous driving, and connected vehicles. The automotive electronics market forms an essential part of the automotive industry, which provides automakers and goods with efficient and sustainable automotive electronics solutions. The market for automotive electronics is likely to remain focused for industry players and policymakers as urbanization and the demand for automotive vehicles continue to grow.
