Categories: Automotive and Mobility
The automotive market is currently highly focused on the safety and security of the occupants, resulting in an increase in demand for automotive components such as safety sensors, microcontrollers, and processors, among others. The automotive electronics market is expected to rise throughout the forecast period, owing to increased pressure from government safety standards such as the Euro New Car Assessment Program (NCAP) and the U.S. National Highway Traffic Safety Administration (NHTSA). NHTSA stands for the National Highway Traffic Safety Administration (NHTSA). As a result, the growth of the automotive electronics market is expected to be aided over the forecast period.
ADVANCE DRIVER ASSISTANCE SYSTEM (ADAS)
The automotive electronics market is being driven by rising concerns about safety and security, as well as a growing demand for new features in automobiles. On Semiconductor, NXP Semiconductors, ST Microcontrollers, and other dedicated participants in this market are largely inclined to offer sophisticated safety systems such as ADAS in favour of the passengers and driver. Radar, ultrasonic, video, and lidar sensors are part of the ADAS system. Because of the safety features they provide, such as lane departure warning, lane keeping assists, advanced navigation, and others, these electronic parts are in high demand right now. To receive a five-star safety rating, the passenger car must have safety features such as an emergency braking system and lane departure warning, according to the US New Car Assessment Program. This move is expected to result in a significant increase in demand for electronic components in the market, resulting in significant growth in the automotive electronics market.
Over the forecast period, the rise in cyber crime via automotive electronics, combined with the increasing complexities in the system, is likely to stymie the growth of the automotive electronics industry.
Memory, sensors, microcontrollers, microprocessors, display & lighting, and others are the components that make up the automotive electronics market. In the automotive electronics market, sensors are expected to have the largest share, followed by microprocessors. The increase can mostly be ascribed to an increase in safety regulations among automotive manufacturers, owing to an increase in global traffic accidents. According to the Association of Safe International Road Travel, around 1.3 million people die in road accidents each year, with an average of 3,287 deaths every day. These sensors serve as safety equipment, detecting objects and preventing accidents, and are expected to play a significant role in the vehicle electronics market.
The automotive electronics industry is divided into ADAS, infotainment, powertrain, body electronics, and others based on application. Due to expanding OEM demand for ADAS, which includes safety sensors, cameras, microcontrollers, and other components, it is expected to be the fastest growing segment in the automotive electronics industry. The increased number of road accidents caused by distracted driving is to blame for the increase in demand. According to the National Highway Traffic Safety Administration, distracted driving claimed the lives of roughly 3450 persons in the United States alone in 2016. As a result of the increased focus on safety, the automotive electronics market is predicted to expand.
Premium vehicles are expected to be the fastest-growing market, owing to rising demand for luxury vehicles, as well as a shift in consumer tastes toward technologically enhanced safety, infotainment, and entertainment amenities. Furthermore, consumers are mostly drawn to vehicles that are attractive. As a result, it has the ability to enhance the number of automotive electronics products for luxury automobiles, predicting market growth in the coming years.
Because of the existence of prominent Original Equipment Manufacturers (OEMs) in the United States, such as General Motors, Ford Motor Company, Tesla, and Fiat Chrysler Automobile, Over the projection period, North America is expected to lead the global market. Furthermore, due to a growth in the installation activities of various electronic devices in automobiles at the OEM level, the regional market will grow due to increased demand for safety modules.
Europe is expected to have the second-largest market share over the forecasted time period, owing to the region's growing vehicle production. Germany is a big contributor to the region's growing automobile industry. According to the OICA, Europe's automotive output increased by over 4% to 20.9 million vehicles in 2017, up from 20.1 million vehicles in 2016.
Texas Instruments, Bosch Automotive, Infineon Technologies, Denso, Continental AG, Delphi Automotive, and Panasonic are among the top companies in the worldwide automotive electronics industry.
To increase their market share, the major companies in the global industry are heavily spending in the research and development of revolutionary electrical products. Furthermore, they intend to include cutting-edge technologies that will help them maintain or increase their market position. Samsung Electronics, for example, announced intentions to invest US$ 22.35 billion in the development of Artificial Intelligence 5G, automotive electronic components, and biopharmaceuticals in August 2018.