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Automotive Electronics Market Share

ID: MRFR//2847-HCR | 188 Pages | Author: Swapnil Palwe| April 2024

The competitive landscape of the Automotive Electronics market, market share positioning strategies play a pivotal role in determining the success of companies within this industry. One key strategy is product innovation and differentiation. Companies strive to develop cutting-edge automotive electronic components and systems that offer unique features, enhanced performance, and improved safety. By staying ahead in technological advancements, companies can position themselves as industry leaders, attracting customers who seek the latest and most advanced electronic solutions for vehicles.

Collaboration and partnerships are another significant market share positioning strategy. Given the complexity of automotive electronics and the increasing integration of various systems, partnerships between automotive manufacturers and electronic component suppliers are common. Establishing strong collaborations allows companies to integrate their products seamlessly into the overall vehicle design, creating a competitive advantage. Strategic alliances also enable companies to tap into each other's expertise, resources, and customer bases, strengthening their market presence collectively.

Cost leadership is a prevalent strategy in the Automotive Electronics market. As the demand for electronic features in vehicles continues to rise, achieving cost efficiency in production becomes crucial. Companies that can offer high-quality electronic components at competitive prices gain a significant market share. Cost-effective manufacturing processes, economies of scale, and efficient supply chain management contribute to cost leadership, enabling companies to cater to a broader customer base.

Global expansion and market diversification are key strategies to enhance market share positioning. Companies in the Automotive Electronics market often expand their presence into emerging markets and geographically diverse regions. This not only helps in tapping into new customer segments but also minimizes dependence on specific markets. A diversified market presence allows companies to mitigate risks associated with economic fluctuations in specific regions and benefit from the varied demands of different markets.

Customer-centric approaches, such as providing excellent after-sales support and customer service, are crucial in market share positioning. Building strong relationships with automotive manufacturers and end-users fosters brand loyalty. Companies that prioritize customer satisfaction and offer comprehensive support gain a favorable reputation in the market, leading to repeat business and positive word-of-mouth referrals. A satisfied customer base becomes a strategic asset for maintaining and expanding market share.

Strategic acquisitions and mergers are common in the Automotive Electronics market to strengthen market share positioning. By acquiring companies with complementary technologies or entering into strategic mergers, companies can broaden their product portfolios and capabilities. This strategy enables them to offer more comprehensive solutions to automotive manufacturers, consolidating their position in the market and potentially gaining a competitive edge over rivals.

Compliance with industry standards and regulations is a fundamental strategy for market share positioning in the Automotive Electronics market. As automotive safety and environmental standards evolve, companies that stay ahead in meeting these requirements gain the trust of both manufacturers and consumers. Meeting or exceeding regulatory standards enhances the reputation of a company and its products, providing a solid foundation for market share growth.

Lastly, continuous investment in research and development is a critical strategy for staying competitive in the Automotive Electronics market. Companies that allocate resources to explore and develop new technologies, especially those related to electric vehicles, autonomous driving, and connectivity, position themselves as innovators in the industry. Staying at the forefront of technological advancements ensures that companies remain relevant in a rapidly evolving market, attracting customers who prioritize cutting-edge solutions.

market share positioning strategies in the Automotive Electronics market encompass a combination of product innovation, collaboration, cost leadership, global expansion, customer-centric approaches, strategic acquisitions, regulatory compliance, and continuous investment in research and development. Companies that successfully navigate and implement these strategies can solidify their market presence, gain a competitive advantage, and thrive in an industry marked by rapid technological advancements and evolving consumer preferences.

Covered Aspects:

Report Attribute/Metric Details
Base Year For Estimation 2021
Historical Data 2018 & 2020
Forecast Period 2022-2030
Growth Rate 7.35% (2022-2030)

Automotive Electronics Market Overview:

Automotive Electronics Market Size was valued at USD 270.96 billion in 2023. The Automotive Electronics industry is projected to grow from USD 290.55 Billion in 2024 to USD 507.86 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.22% during the forecast period (2024 - 2030). Active safety system demand and demand for cutting-edge infotainment systems are increasing and are the key market drivers enhancing the Automotive Electronics market growth.

Automotive Electronics Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Electronics Market Trends

Growing Adoption of Automotive and Electric Vehicles is Predicted to Support Market Growth

The ACES trends—autonomous driving, connected cars, electrification of the powertrain, and shared mobility—are advancements in the automobile industry that reinforce one another. They are all impacting and destabilizing the automotive value chain as a whole. Additionally, they are important contributors to the automotive software and electrical and auto electronic components (E/E) market, which is anticipated to increase from $238 billion to $469 billion between 2020 and 2030. The whole automotive industry is predicted to increase at a compound rate of 3% over the same period, significantly outpacing software and E/E sector growth at this rate. As a result, most automotive businesses and their executives now concentrate on software and electronics.

To provide energy storage technology and high-performance electronics at a competitive price, the automotive industry invests significant money in research and development. Additionally, OEMs rely increasingly on electronics to ensure high safety. In 2020, almost 35% of the cost of a car was made up of electronic components. However, given technological advancements, it is anticipated that by 2030, auto electronic components will make up around 50% of the cost of a car.

As per market dynamics, the need for Auto electronics components is anticipated to increase as hybrid electric vehicles (HEV) and electric vehicles (EV) become more widely used. Additionally, replacing mechanical parts with electronic parts, such as using electronic switches rather than relays, is another way that electronics may meet the diverse demands of the automobile industry while boosting dependability and lightning wire harnesses. According to market forecast, it is also anticipated that government laws to reduce traffic accidents and technological improvements connected to in-vehicle safety would increase demand.

The need for in-vehicle data storage to enable sophisticated features is driven by the expanding demand for in-car entertainment systems due to their enhanced comfort, efficiency, and convenience. This is one of the key factors influencing the market for in-car infotainment applications.

Automotive Electronics Market Segment Insights:

Automotive Electronics Type Insights

Based on type, the Automotive Electronics Market segmentation includes ADAS, Body Electronics, Entertainment, Powertrain, Safety Systems, and Others. In 2021, the safety systems sector held the biggest market share, at around 29%. Airbags, tire pressure monitoring systems, keyless entry, electronic brake distribution, electronic stability control, electric power steering, and suspension control are just a few of the parts that make up safety systems. Growing consumer awareness of technology advancements affecting automobile safety equipment is anticipated to be a significant development factor for the safety systems market. Therefore such factors will boost the Automotive Electronics market growth.

Automotive Electronics Sales Insights

Based on sales, the Automotive Electronics Market segmentation includes OEM and aftermarket. In 2021, the OEM category held the greatest share, with over 68%. Due to the improved durability and shelf-life of electronic components, the OEM segment dominated the automotive electronics market in 2020. Since they are an essential element of automobiles, people prefer to purchase auto electronic components from OEMs to get authentic parts. In addition, a reduced revenue share for aftermarket electronic components is anticipated throughout the projected period due to the rise in design complexity of these auto electronic components.

Figure 2: Automotive Electronics Market, by Sales, 2021 & 2030 (USD Million)

Automotive Electronics Market, by Sales, 2021 & 2030

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Electronics Application Insights

Based on application, the Automotive Electronics Market data includes PV, LCV, HCV, EV, and 2-wheeler. Due to increased passenger vehicle sales and production worldwide, the passenger car sector currently accounts for the biggest market share for auto electrical connectors. The industry is expanding because of automakers' quick adoption of cutting-edge technology like infotainment and driver assistance systems. Furthermore, the government's strict regulations on fuel economy and the safety of both drivers and passengers are boosting market development. The market for electric vehicles (EVs) is expanding exponentially. Automakers are being forced to switch from making conventional gasoline vehicles to electric ones due to rising fuel pollution levels and carbon footprints. This aspect is anticipated to have rapid market expansion.

Automotive Electronics Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Automotive Electronics market accounted for USD 103.81 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. To provide energy storage technology and high-performance electronics at a competitive price, the automotive industry invests significant money in research and development. Additionally, OEMs depend increasingly on electronics to ensure high safety.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Automotive Electronics Market Share By Region 2021 (%)

Automotive Electronics Market Share By Region 2021

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Asia Pacific Automotive Electronics market region had the biggest increase. Due to the thriving electronic component manufacturing operations, nations including Taiwan, South Korea, Malaysia, and Thailand have considerably contributed to the auto electrical connectors industry expansion. China and Japan supply most of the auto electronics needed in the Asia-Pacific region. However, the small number of Vehicle electronics producers presents a fantastic business opportunity for regional suppliers to take advantage of the domestic demand, making the remainder of Asia Pacific a desirable investment location. Further, the China Automotive Electronics market held the largest market share, and the India Automotive Electronics market was the fastest-growing market in the Region.

The European Automotive Electronics market region had the substantial increase. Due to the growing concern for passengers' and cars' safety and security, Europe is likewise seeing exponential market expansion. The presence of well-known automakers like Volkswagen, Skoda, Audi, BMW, and Daimler, among others, is advantageous in this area. Additionally, the European Union has implemented several rules to reduce traffic accidents and mandate safety features in all automobiles, which has helped the ADAS business flourish in this Region. All of these causes are fueling the expansion of the Automotive Electronics market. Further, the Germany Automotive Electronics market held the largest market share, and the UK Automotive Electronics market was the fastest-growing market in the European Region.

Automotive Electronics Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for automobile electronics. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. According to market competitive landscape, players in the Automotive Electronics industry must provide affordable products To grow and remain in a market that is becoming increasingly competitive.

Manufacturing locally to cut operational costs is one of the main business tactics the Automotive Electronics industry uses to serve customers and increase the market sector. The Automotive Electronics industry has recently given medicine some of the most important advantages. The Electronics market major players such as Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (US), Hitachi Ltd. (Japan), Delta Electronics Inc. (Taiwan), Atotech (Germany), ZF Friedrichshafen AG (US), Denso Corporation (Japan), Koninklijke Philips N.V. (Netherlands), and others are working on expanding the market demand by investing in research and development activities.

A Canadian company called Magna International Inc. produces vehicle parts. It was listed on the 2020 Forbes Global 2000 and is one of Canada's biggest corporations. Veoneer and Magna International Inc. announced their merger agreement in July 2021, under which Magna would acquire Veoneer. The firm will be merged with Magna's electronics and ADAS business segments.

Bosch Engineering creates electronic solutions for automotive and non-automotive applications that enable effective, secure, and connected mobility. Bosch Engineering created a high-voltage lab rig (HVLR) in July 2021 that can be used to test electric vehicles' power electronics effectively. Instead of on a bench, the test may be performed in a high-voltage lab, intended to save development costs and speed up the process.

List of the Key Companies in the Automotive Electronics market include

  • Robert Bosch GmbH (Germany)

  • OMRON Corporation (Japan)

  • Infineon Technologies AG (Germany)

  • HGM Automotive Electronics (US.)

  • Hitachi Ltd. (Japan)

  • Delta Electronics Inc. (Taiwan)

  • Atotech (Germany)

  • ZF Friedrichshafen AG (U.S.)

  • Denso Corporation (Japan)

  • Koninklijke Philips N.V. (Netherlands)

Automotive Electronics Industry Developments

December 2022: NXP and Delta Electronics have formed a strategic partnership to create platforms for future autos. Public information has also been released on the two firms' collaborative labs. Its objectives include enhancing electrification options and utilizing real-time goods based on NXP S32E and S32Z processors. Smart actuation, safety processing, domain and zonal control, and EV control are developed using the S32K39 microcontroller.

July 2021: Renesas Semiconductor Manufacturing CO., Ltd., a fully owned subsidiary of Renesas Electronics Corp., a leading provider of cutting-edge electrical and semiconductor solutions, announced its plan to consolidate the Yamaguchi Factory by the end of June 2022.

July 2021: BeXema GmbH will be acquired by HORIBA Europe for power electronics. Due to this purchase, the firm has added electric power industry technology to the group's internal supply chain.

Vehicle Electronics Market Segmentation:

Vehicle Electronics Type Outlook

  • Advanced driver assistance systems

  • Body Electronics

  • Entertainment

  • Powertrain

  • Safety Systems

  • Others

Vehicle Electronics Sales Outlook

  • OEM

  • Aftermarket

Vehicle Electronics Application Outlook

  • Passenger cars

  • Light commercial vehicle

  • Heavy commercial vehicle

  • Electric vehicle

  • Two-wheeler

Vehicle Electronics Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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