The global automotive electronics market is expected to register a CAGR of 9.3% during the forecast period (2020–2030) and record a significant increase in its valuation, from $235.7 billion in 2019, to $615.3 billion by 2030.
The major factors boosting the growth of the market are the increasing demand for vehicles and the soaring number of government measures and regulations being enacted for making the vehicles fuel-efficient and safer. Automotive electronics refer to the electronic systems integrated in vehicles for enhancing or even enabling their performance.
One of the key factors pushing the growth of automotive electronics market is the rapidly increasing sale of vehicles around the world. In this day and age, automotive electronics contribute nearly 35% of the total cost of an average automobile, a considerable increase from the 5% contributed by these components in 1970.
This number is projected to significantly increase in the future, thereby driving the industry revenue. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), the total automotive sales during 2014–2018 stood at around 95.1 million.
The rise in government regulations and measures aimed at improving the safety and efficiency of vehicles is another major factor driving prosperity in the automotive electronics market.
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In various countries, such as the U.S., Japan, and China, the governments are initiating the mandatory installation of various emission-controlling systems, such as positive crankcase ventilation (PCV) valve, catalytic converter, evaporative controls, and exhaust gas recirculation (EGR) valve, in vehicles. Furthermore, the governments are also making the use of certain autonomous driving systems mandatory, in order to improve road and passenger safety.
