Acceptance of IoT and AI in the automobiles, surge in demand for in-vehicle safety feature, and rise in vehicles equipped with automated driving boost the growth of the global automotive electronics market
PORTLAND, Oregon, March 4, 2020 /PRNewswire/ --Allied Market Research published a report, titled, "Automotive Electronics Market by Vehicle Type (Passenger Car, LCV and HCV), Component (Sensors, Actuators, Processors, Microcontrollers, and Other), Application (ADAS, Infotainment, Body Electronics, Safety System, Power Train and Others), and Distribution Channel (OEM and Aftermarket): Global Opportunity Analysis and Industry Forecast, 2019–2026." According to the report, the global automotive electronics market accounted for $228.34 billion in 2019, and is estimated to reach $382.16 billion by 2026, growing at a CAGR of 7.3% from 2019 to 2026.
Prime determinants of growth
Adoption of IoT and AI in the automobiles, increase in demand for in-vehicle safety feature, and surge in vehicles equipped with automated driving propel the growth of the global automotive electronics market. However, low adoption of automotive electronics in newly industrialized countries and rise in cost of automobile with more automated features restrain the market growth. On the other hand, investment toward autonomous driving of vehicles in smart grids provides new opportunities to the industry.
The passenger car segment to dominate throughout the forecast period
Based on type, the passenger car segment accounted for nearly two-fifths of the total share of the global automotive electronics market in 2019, and is estimated to continue to dominate throughout the forecast period. The passenger cars share a major part of the mobile categories that increases the demand of the customer for electronic controls, which drives the growth of the segment. On the other hand, the HCV segment is expected to maintain the highest CAGR of 9.0% from 2019 to 2026. The electronic installation in HCV for driver assistance and safety offers lucrative growth to the segment.
The microcontrollers segment estimated to maintain its leadership status by 2026
Based on components, the microcontrollers segment accounted for the largest share of the global automotive electronics market, contributing to more than one-fourth of the total market in 2019, and is estimated to maintain its leadership status throughout the forecast period. The increase in demand for smart electronics in automotive leads the growth of the segment. However, the processors segment is expected to register the highest CAGR of 8.6% from 2019 to 2026. The processors play a major role in electronic system, which drives the growth of the segment.
Europe to maintain its lead status in terms of revenue by 2026, North America to grow at a moderate pace-
Based on region, Europe accounted for the highest market share in 2019, accounting for nearly one-third of the global automotive electronics market, and is expected to maintain its lead status in terms of revenue by 2026. This is due to the presence of leading market players in the region. However, LAMEA is estimated to portray the largest CAGR of 10.0% from 2019 to 2026. The rapid adoption of autonomous vehicle controls in this province, leads the growth of the market in this region. On the other hand, North America estimated to manifest a CAGR of 4.90% in between 2019 to 2026
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