Rising trend in automotive industry to provide security features such as alcohol ignition interlocks, accident data recorder systems, and emergency call systems in automobiles is projected to propel the demand for automotive electronics over the coming years. According to Global Market Insights, Inc., “Automotive Electronics Industry size worth USD 185 billion in 2015, is expected to reach USD 353 billion by 2023, recording a CAGR of 8.4% over 2016-2023.”
Strict implementation of rules by the government authorities due to growing concerns about passenger safety is expected to boost automotive electronics market size over the coming years. Growing consumer preference for highly advanced direct-injection diesel engines over swirl-chamber and pre-chamber devices due to its ability to provide better fuel efficiency is anticipated to offer lucrative opportunities for industry growth over the coming years. Furthermore, they reduce greenhouse emissions and provide cooling structure mainly for heavy-duty automobiles.
Asia Pacific automotive electronics market size by application, 2012-2023 (USD Billion)
Automotive electronics find wide applications in Advanced Driver Assistance Systems (ADAS), Safety Systems, Infotainment, Body Electronics, and Powertrain. Automotive electronics market size in body electronics worth USD 38.60 billion in 2015, is expected to grow at a rate of 6.4% over 2016-2023 owing to its ability to provide improved communication facility, secured functionality, and low power consumption. Power train electronics industry which contributed nearly 21% of the overall automotive electronics industry share in 2015, is forecast to reach USD 59.30 billion by 2023. The growth can be attributed to factors such as cost-efficiency, growing demand for ECU production, and better drivability.
Safety systems industry which accounted for over 28% of the global automotive electronics market revenue in 2015, is anticipated to reach USD 100 billion by 2023, recording a CAGR of 8.5% over the coming seven years. Intensified government efforts concerned with passenger safety accompanied by strict implementation of government rules across the globe are few of the key factors predicted to contribute towards the growth of the application segment over the coming years. Automotive electronics market revenue in Advanced Driver Assistance Systems (ADAS) application worth USD 21 billion in 2015, is expected to register highest gains of 11% over 2016-2023 owing to strict government regulations mandating installation of ADAS in automobiles. In addition to this, growing adoption of active safety systems in automobiles is expected to boost the demand for automotive electronics over the coming years.
Asia Pacific automotive electronics market worth USD 72.60 billion in 2015, is anticipated to reach USD 145.50 billion by 2023, registering a CAGR of 9.1% over 2016-2023. The growth can be credited to growing consumer preference for customized, low-priced, and high quality vehicles. North America market revenue worth USD 40 billion in 2015, is projected to reach USD 80 billion by 2023 owing to growing consumer need for comfort, safety, and convenience.
Market players will try to increase their ROI by focusing on strategic alliances with channel partners. Key industry participants include Delphi Automotive, ZF Friedrichshafen, Bosch, Denso Corporation, Continental AG, and ZF TRW Incorporation.
Written By : Dhananjay Punekar