DOVER, DE – Automotive electronics will grow from $185.1 billion in 2015 to $352.9 billion by 2023, a 91% jump, new research suggests.
Research firm Global Market Insights attributes the increase to the mounting scope of equipment in end-use industries. Rising automotive electronics adoption to provide safety features such as alcohol ignition interlocks, emergency call systems and mishap data recorder systems are expected to fuel demand. Increasing adoption by original equipment manufacturers on high-volume conventional implementations is also likely to modify the regulatory framework.
The rise of lithium-ion batteries, coupled with electronic compressors for hybrid as well as electric vehicles, is being optimized to minimize production cost.
Preventive measures undertaken by countries to curb fatalities will provide opportunities for industry players, says GIM.
The safety systems market was more than $52.39 billion in 2015 and is forecast to reach $100 billion by 2023, a CAGR of 8.5% from 2016 to 2023. ADAS has an estimated forecast of $56 billion by 2023, growing at a CAGR of more than 13%. This can be primarily attributed to increasing safety systems installed in electric and hybrid vehicles on account of mandatory ADAS.
The Asia Pacific automotive electronics market was $72.63 billion in 2015 and is expected to reach $145.58 billion by 2023, a CAGR of 9.1% over the forecast period. This can be attributed to the need for tailored features in electric vehicles, enhancement in product quality, and reduction in manufacturing cost.
The North American region was $41.73 billion in 2015 and is likely to account for 22.95% of the market share by 2023. This can be attributed to increasing customer needs for safety, comfort and convenience.
Body electronics was valued at $38.61 billion in 2015 and is likely to grow at a CAGR of 6.4% from 2016 to 2023. Distinctive features offered, such as enhanced communications, safety relevant functionality and low power consumption are anticipated to drive demand.
Powertrain automotive electronics accounted for 20.88% of total shares in 2015 and is likely to reach $59.39 billion by 2023. The need for ECU production, better drivability and cost-effectiveness to congregate emission norms is expected to drive demand.
The automotive electronics market was led by Bosch and Continental AG last year. Other major participants include Delphi, ZF Friedrichshafen, TRW and Denso.