SELLBYVILLE, DE – The automotive electronics market is forecast to exceed $390 billion by 2024, up 8% from 2017 to 2024, according to Global Market Insights.
Shifting consumer preference toward vehicles with safety equipment, including map-supported front lighting, collision warning, and speed alert will drive automotive electronics demand, the firm says. Benefits including a low-speed collision avoidance system, emergency call system and alcohol ignition interlocks will fuel product penetration.
Global vehicle production is likely to surpass 130 million units over the upcoming eight years, increasing industry demand, says Global Market Insights.
Continued use of advanced technology into nearly all the automobile main systems is expected to drive growth. For instance, in Europe more than 40% of the on-board devices in the car are based on electronics, and the percentage is likely to rise with improvements in existing regulations and norms governing the automotive electrical components market, the firm says.
In addition, the US 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 automobile microelectronics demand.
ADAS will be worth more than $60 billion by 2024, says the company. Strict safety norms are among the major contributing factors for ADAS in cars' active security systems. Assured road safety and driving comfort will facilitate demand as well.
Preventive actions to curb fatalities will provide significant opportunities for the industry players, says Global Market Insights. However, the absence of effective supply agreements between several OEM and subsystems manufacturers may impact automotive electronics’ market price trend.
The increase in consumer spending on entertainment systems in vehicles, including satellite radios, MP3 players and rear set entertainment systems will fuel product demand. A surge in disposable income has boosted the growth for high-end and luxury car sectors, thereby contributing to the automobile electrical components’ market size.
The North American automotive electronics market is expected to grow 8.5% during the forecast period. Safety systems and powertrains 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 $90 billion in 2016. The need to meet international regulatory standards to promote exports will facilitate industry growth.
Thailand, Vietnam, India, and Indonesia are among the key promising contributors in APAC.
Bosch Group, Continental, Denso, Delphi, Dow Corning, Hitachi and Panasonic are the major revenue-generating companies. Other prominent players in terms of product offerings and geographical presence are Altera, Audiovox, Avago Technologies, Atmel, Infineon Technologies, Texas instruments, Wipro and TRW.