Automotive Electronics Market Fueled by Need for Enhanced Safety

Automotive Electronics Market Fueled by Need for Enhanced Safety

car-engine-2773263_960_720The automotive industry is prospering, particularly in the emerging economies wherein disposable income of urban populations has multiplied in the recent times. At the same time, the consumer awareness and preference for vehicles that are equipped with safety equipment such as map-supported front lighting, electronic fuel injection, telematics, advanced driver assistance, airbags, speed alerts, collision warning, wireless charging systems, emergency call system, and alcohol ignition interlocks have escalated. A recent commerce and business study by Transparency Market Research (TMR) reiterated that the global automotive electronics market is flourishing, with the demand projected to expand at a notable CAGR of 7.4% during the forecast period of 2017 to 2022. The TMR report has evaluated that the opportunities in the automotive electronics market, across the world, were worth US$3,530.7 mn in 2017, which will swell up to US$5,048.9 mn by the end of the forecast period, which is 2022.

Which factors will ensure a healthy future for the automotive electronics market?

The demand in the global automotive electronics market is augmenting as a result of various factors, such as ubiquity of smartphones that has yielded the need for user interface that can be integrated with the vehicles, rising safety considerations among the consumers across developed and developing countries, escalating demand for high-end electronics for navigation, information, and entertainment from the segments of luxurious vehicles, and the growing popularity of hybrid and electric vehicles due to environmental considerations. Not only that, electronics has vast innovation possibilities as far as the automotive sector is concerned. The vendors operating in this market are continuously investing on research and development of new products and those are gaining adoption at an equally quicker rate too. Government regulatory and subsidies for products that offer enhanced safety for their citizens are also expected to provide traction to the global automotive electronics market.

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Which market segments are promising higher growth?

Based on vehicle type, the TMR report segments the global automotive electronics market into compact passenger cars, premium passenger cars, mid-sized passenger cars, luxury passenger cars, heavy commercial vehicles, and light commercial vehicles. Among these, driven by its sheer demand, the mid-sized passenger car currently represents the best segment, producing 26.2% of the total demand in 2017 and projected to expand at a CAGR of 6.8% during the forecast period of 2017 to 2022. By 2022, this particular segment will be serving more than a quarter, 25.4%, of the total demand in the global automotive electronics market. As per the estimations of the TMR report, this particular segment will produce a demand worth of US$71.8 mn annually through the duration of the forecast period.

Which is the most lucrative region for the vendors to concentrate on?

Europe is currently the most lucrative region for the companies operating in the global automotive electronics market, promising to lay down opportunities worth of US$1,265.8 mn by 2022. That being said, North America automotive electronics market is projected to expand at an above-average CAGR of 8.0% during the said forecast period, and produce a revenue of US$1,159.3 mn. Asia Pacific is another region that is quickly turning profitable, and is estimated to be worth US$1,256.8 mn by 2022.

How stiff is the competition among the leading vendors?

Infineon Technologies AG, Texas Instruments, Inc., ON Semiconductor Corp., STMicroelectronics N.V., Maxim Integrated Products, Inc., NXP Semiconductors NV, OMRON Corporation, Robert Bosch GMBH, Hitachi Ltd., and ZF Friedrichshafen AG are some of the key companies currently operating in the global automotive electronics market, which is heavily dependent on product innovation.