Automotive electronics market forecasted at 8% growth
Stephen LawAutomation / Robotics Electronics Regulations & Standards Engineering Supply Chain automotive electronics automotive electronics
The global vehicle production is likely to surpass 130 million units over the upcoming eight years, thus booming the industry demand, according to a report by Global Market Insights Inc.
Automotive electronics marketshare is estimated to exceed USD $390 billion by 2024; according to a new research report by Global Market Insights Inc. Shifting consumer preference towards vehicles with safety equipment including map-supported front lighting, collision warning, and speed alert will drive automotive electronics demand. Benefits including low speed collision avoidance system, emergency call system and alcohol ignition interlocks will fuel product penetration.
Upsurge demand in overall fleets number along with their high average age will propel the automotive electronics market expansion. The global vehicle production is likely to surpass 130 million units over the upcoming eight years, thus booming the industry demand. Continued penetration of advanced technology into nearly all the automobile main systems is expected to drive the industry growth. For instance, in Europemore than 40% of the on-board devices in the entire car is based on electronic and the percentage is likely to rise with the improvement in existing regulations & norms governing the automotive electrical components market.
Strict safety norms are among the major contributing factor for ADAS
In addition, the U.S. New Car Assessment Program (NCAP) has mandated lane departure warning systems and emergency braking systems to guarantee a five-star rating for passenger cars. This will propel the automobile microelectronics demand. ADAS will be worth over USD 60 billion by 2024. Strict safety norms are among the major contributing factor for ADAS penetration in cars’ active security systems. Assured road safety along with offering comfort driving will facilitate demand.
Preventive actions undertaken by various countries to curb fatalities will provide significant opportunities for the industry players. However, absence of effective supply agreement between several OEM and subsystems manufacturer may impact automotive electronics market price trend.
Increase in consumer spending on entertainment systems in vehicles including satellite radios, MP3 players and rear set entertainment system will fuel product demand. Surge in disposable income has boosted the growth for high-end and luxury car sectors, thereby contributing to the automobile electrical components market size.
North America automotive electronics market is anticipated to witness an increase in overall growth of 8.5% up to 2024. Safety systems and powertrain are among the major contributing applications. Increasing technological development coupled with growing concern over safety and security in vehicles has positively influenced demand.
Asia Pacific generated over USD 90 billion in 2016, shift of automobile electrical component manufacturer production unit to Asia owing to the availability of lesser cost equipment and labor. Need to meet international regulatory standards in order to promote export will facilitate industry growth. Thailand, Vietnam, India, and Indonesia are among the key promising contributor in APAC. Significant rise in the consumer’s income level propelling the demand for upgraded systems thus boosting regional industry growth.
Global automotive electronics market share is highly competitive owing to large presence of domestic and global industry players. Bosch Group, Continental AG, Denso, Delphi, Dow Corning, Hitachi and Panasonic are the major revenue generating companies. Other prominent players in terms of product offering and geographical presence are Altera, Audiovox, Avago Technologies, Atmel, Infineon Technologies AG, Texas instruments, Wipro and TRW.