Automotive in India – Mobility, Make in India and Semiconductors Key Drivers
The Indian automotive OEM industry is already in a strong position. Globally, it is at the forefront of many segments—leading in two-wheelers, segment A cars, and tractors. The industry aspires to nearly triple vehicle sales by 2026, from 26 mn to 65 mn to 76 mn vehicles, across segments. These could be definitive tailwinds for the Indian automotive components industry, which has ambitions of its own by 2026—to double the contribution to manufacturing GDP with a four-fold growth in size and a six-fold growth in exports.
Make in India
For most major domestic and foreign OEMs across vehicle segments, India’s growing localization levels indicate the industry’s capability to produce a diverse portfolio. Top selling models across vehicle segments—hatchbacks, SUVs, premium sedans, commercial vehicles—have achieved 85 percent or higher localization. Market leaders in two-wheelers have started developing bikes that are 100 percent indigenous. And a very cost-sensitive segment such as tractors is at nearly 100 percent localization.
The Automotive HUD Market
The automotive HUD market is estimated to be USD 1.1 billion in 2019 and is projected to reach USD 4.3 billion by 2025, at a CAGR of 25.28% during the forecast period. Consumers are increasingly considering advanced automotive safety functions and technologies while making purchase decisions. Further, government regulations in the developed regions of North America and Europe are increasingly favoring automotive innovations and technologies that support vehicle and road safety. 3-D is the fastest growing segment of the automotive HUD market, by dimension type. The 3-D HUD technology is attractive to leading auto manufacturers because it is compact, does not require eye tracking, and provides a deeper field of view than the existing HUD displays. Passenger car is expected to be the largest vehicle type segment in the automotive HUD market. The demand for such advanced technology is expected to increase in both developing and developed countries such as the US, Germany, the UK, China, and Japan, where there is faster adoption of advanced in-vehicle safety technologies. Europe is expected to be the largest growing automotive HUD market. Europe is projected to dominate the automotive HUD market during the forecast period. Owing to the large market for premium and luxury cars in the European countries and the rising consumer demand for active safety systems in mid-segment vehicles, the European region is the largest market for automotive HUDs.
The Market Model of the Future
Dominance of Mobility
Mobility remains dominated by personal vehicles, and the market is far from the tipping point at which services start to generate more revenues than vehicles. In the outcome economy context, purchasing decisions made for each ride are influenced by factors including availability, comfort, ease of use, reliability ratings and pricing. By contrast, revenues from mobility services are projected to soar to almost €1.2 trillion—with profits reaching as much as €220 billion. Fueled by constant improvements in autonomous vehicle technologies, global markets for mobility as a service are set to grow exponentially over the next decade.
Semiconductor on the Hot Seat
According to IC Insights most recent report on semiconductor industry drivers, industrial electronic systems are forecast to enjoy the second-fastest CAGR through 2021, 4.6 percent. This growth includes increases in robotics, wearable health devices and systems promoting the Internet of Things help drive growth in this segment, the firm said. Other forecasted compound annual growth rates listed in the report include 4.2 percent for communication systems and 2.8 percent for consumer electronic systems. The personal computing segment is expected to have the weakest CAGR of all major semiconductor drivers through 2021, IC Insights said. The global automotive semiconductor market is expected to reach an estimated $67.5 billion by 2023 with a CAGR of 13.1% from 2018 to 2023.
The future of the global automotive semiconductor market looks promising with opportunities for passenger cars, commercial, and electric vehicles. The major growth drivers for this market are increasing vehicle production, increasing electronic content per vehicle, and growing demand for advanced vehicle safety and comfort systems. Emerging trends, which have a direct impact on the dynamics of the automotive semiconductor industry, include the introduction of high efficiency power semiconductors, and development of smaller single-chips for radar sensors.
Automotive Sensor Market
According to Research for Markets, the Global Automotive Sensors Market is accounted for $23.89 billion in 2016 and is expected to reach $40.23 billion by 2023 growing at a CAGR of 8.1% from 2016 to 2023. Safety & control application segment is expected to witness high compound annual growth rate. The growth is attributed to raising awareness about vehicle safety, and increasing various regulations. Position sensors are leading the market by its market revenue due to high adoption in passenger cars. By geography, Asia Pacific is projected to register the largest market share and is anticipated to grow with a highest CAGR during the forecast period attributed to rising demand for safer vehicles and growing automobile industry in emerging economies such as China and India.
