Automotive Electronics Market: Passenger Vehicles Lead with 64.29% Share, While EVs Project 13.21% CAGR to 2030, Says Mordor Intelligence

HYDERABAD, India, Nov. 25, 2025 /PRNewswire/ -- According to Mordor Intelligence, the automotive electronics market is projected to grow from USD 303.41 billion in 2025 to USD 435.58 billion by 2030, reflecting a 7.75% CAGR. Rising electronics per vehicle, tighter safety and emission norms, and faster EV adoption continue to push demand. Semiconductor's usage now shapes most product cycles, with zonal architectures supporting cost-efficient software updates. Following recent chip shortages, companies are focusing more on securing wide-bandgap device supply, even as Tier-1 suppliers face stronger competition from semiconductor firms expanding into ADAS and power-train systems.

Regional Insights    

Asia-Pacific remains the centre of momentum for automotive electronics, supported by strong EV programs, deeper semiconductor manufacturing capabilities, and leadership in microcontrollers, memory, and power devices. China, Japan, and South Korea each advance their own strengths, while emerging hubs in Southeast Asia expand production to reduce geopolitical exposure. Governments across the region are backing new fabrication projects to strengthen supply security and support long-term industry growth. 

Europe remains a key hub for automotive electronics, supported by stronger safety and emissions policies that encourage higher electronic content in new vehicles. German manufacturers are pushing deeper into software-defined platforms, often working with cloud partners to accelerate development. The region is also building out battery and power-electronics capacity, while navigating added trade friction post-Brexit. A well-established Tier-1 base continues to reinforce Europe's role in ADAS and chassis technologies. 

Automotive Electronics Growth Drivers 

Rise of Software-Led Architectures with Expanding OTA Capabilities 

Automakers are moving toward centralized computing and virtualized platforms, cutting wiring needs and making it easier to roll out new functions across vehicle lines. Over-the-air software updates are becoming standard in higher-end models, opening opportunities for paid digital features and long-term service revenue. At the same time, stricter cybersecurity requirements are adding complexity to development, prompting OEMs and suppliers to reorganize around shared software platforms and strengthen partnerships with cloud technology providers. 

Increasing Regulatory Pressure on ADAS Adoption 

New safety rules across major automotive markets are accelerating the adoption of advanced driver-assistance features, requiring automakers to integrate a wider mix of sensors and processing hardware. Insurance programs are reinforcing this shift by offering benefits for vehicles equipped with active safety systems. As global standards become more aligned, manufacturers gain more flexibility to design scalable electronic platforms, strengthening the importance of semiconductor partners in supporting the transition toward higher levels of automated driving. 

Segmentation Landscape 

By Application 

• Advanced Driver Assistance Systems (ADAS)
• Infotainment and Communication
• Powertrain Control
• Body Electronics
• Safety Systems
• Others

By Component Type 

• Electronic Control Units (ECUs)
• Sensors
• Microcontrollers
• Integrated Circuits
• Displays
• Connectors
• Others 

By Vehicle Type 

• Passenger Vehicles
• Commercial Vehicles 

By Propulsion Type 

• Internal Combustion Engine (ICE)
• Hybrid Vehicle
• Electric Vehicle 

By End Use

• OEM (Original Equipment Manufacturer)
• Aftermarket 

By Sales Channel 

• Direct Sales
• Distributors
• Online Platforms

Automotive Electronics Companies

• Robert Bosch GmbH
• Continental AG
• Denso Corporation
• Aptiv PLC
• Panasonic Automotive
• Infineon Technologies
• NXP Semiconductors 
• STMicroelectronics
• Texas Instruments 
• Renesas Electronics
• Harman International
• Magna International 
• Valeo SA
• Hyundai Mobis 
• ZF Friedrichshafen 
• NVIDIA Automotive
• Intel (Mobileye)
• Analog Devices
• ON Semiconductor 
• Marelli 

Industry Related Reports by Mordor Intelligence 

Automotive Airbags Market: The automotive airbags market is valued at USD 27.98 billion in 2025 and is projected to reach USD 48.10 billion by 2030, registering a CAGR of 11.51% during the forecast period, driving higher integration of advanced airbag systems. Asia-Pacific remains the largest regional market due to high vehicle production volumes, while the Middle East & Africa emerges as the fastest-growing region. 

Automotive Smart Antenna Market: The automotive smart antenna market is valued at USD 3.38 billion in 2025 and is projected to reach USD 5.73 billion by 2030, registering a CAGR of 11.15% during the forecast period. Market growth is driven by the rapid integration of advanced connectivity features in modern vehicles, rising adoption of 5G-enabled architectures, and the increasing shift toward software-defined, connected, and electric vehicles that require high-bandwidth, low-latency communication systems. 

Automotive Sensors Market: The automotive sensors market is valued at USD 28.83 billion in 2025 and is projected to reach USD 38.67 billion by 2030, registering a CAGR of 6.05% during the forecast period. Growth is supported by the increasing integration of advanced driver assistance systems, the rising electrification of vehicles, and the expanding need for real-time sensing technologies that enhance vehicle safety, efficiency, and performance. 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics. 

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