As per Organisation Internationale des Constructeurs d’Automobiles (OICA), in 2018, 95.1 million commercial and passenger vehicles were sold, and between 2014 and 2018, the number rose at a CAGR of 1.8%.
In the coming years too, the demand for automobiles is predicted to increase, primarily in China, Indonesia, Thailand, Brazil, and India.
Additionally, from just 5% in 1970, the share of electronic components in the total cost of automobiles is expected to touch 50% by 2030, which reflects technological advancements in such components as well as their increasing significance in vehicles. Driven by such factors, the global automotive electronics market, from its value of $235.7 billion in 2019, would progress to $615.3 billion by 2030, at a 9.3% CAGR during the forecast period (2020–2030).
Current Carrying Devices to Register Fastest Market Growth
Current carrying devices are expected to record the fastest automotive electronics market growth, on the basis of component, during the forecast period. This is because almost 200 electronic switches and fuses are installed in an automobile to make it functional. With the increasing vehicle production, to cater to the rising demand, the usage of electronics will also surge.
The driver assistance system category, based on system, is projected to observe the highest CAGR, of 10.7%, in the automotive electronics market, during the forecast period, in terms of revenue. The major reason behind this would be the quick increase in the adoption of autonomous vehicles, which are currently either in the development phase, especially after 2023. Additionally, with advancements in driver assistance systems, with respect to passenger and pedestrian safety, they would be rapidly integrated in automobiles.
In 2019, passenger cars, under the vehicle segment, dominated the automotive electronics market. This is because almost 70% of the automobiles sold in 2019 were passenger cars.
Further, all the new technologies being worked upon, such as autonomous driving and electric propulsion, are first tested on passenger cars, and the integration of these technologies require electronic components in significant amounts.