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The automotive electronics market is anticipated to reach US$ 249.653 billion in 2023 and then increase at a CAGR of 4.6% to US$ 391.43 billion between 2023 and 2033. The automotive electronics demand to increase due to the increased integration and implementation of modern safety systems, including automated airbags, parking assistance systems, emergency braking, and lane departure warning to reduce traffic accidents.

In-vehicle passenger safety features such as alcohol ignition interlocks, emergency call systems, and accident data recorder systems are being quickly implemented, and they are anticipated to propel market expansion for automotive electronics over the projection period.

The Role of IoT and AI in the Evolution of Automobile

The growth of IoT and AI has changed how car functionalities operate, according to market trends for automotive electronics. It has improved the ride assistance systems and boosted driver communication with the vehicle during the last year. The rise of the automotive electronics business is fueled by the inclusion of cameras and sensors in automobiles, which aid drivers in parking their cars or using other nearby features.

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The Increasing Need for In-Vehicle Safety Technology

Automobile electronic components are necessary because car safety regulations are becoming more stringent in different parts of the world, and consumers are becoming more aware of car safety features.

Airbags are standard equipment on all but the most affordable models of vehicles. In contrast, the most expensive models have cutting-edge safety technologies like autonomous emergency braking and sleep recognition. This should present a profitable automotive electronics market opportunity.

A Sharp Rise in Vehicles Embracing Automated Driving

Artificial intelligence has improved autos thanks to its development. These self-driving cars recognize danger and gauge the tension of the driver. Radars and other sensors are used by self-driving autonomous vehicles to sense their environment. Advanced control systems use sensory data to determine the best routes to take, obstacles, and pertinent signage.

Insights into Regional Developments

The automotive electronics market in Europe is witnessing significant growth. Europe is experiencing a market boom due to the increasing concern for safety and security in the automotive industry. This region benefits from reputable automakers like Volkswagen, Skoda, Audi, BMW, and Daimler.

The ADAS industry has thrived due to regulations implemented by the European Union to reduce traffic accidents and promote vehicle safety equipment. These factors are collectively surging the market growth of automotive electronics.

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The automotive electronics business in Asia-Pacific is experiencing substantial growth. Through their robust electronic component manufacturing activity, nations like Taiwan, South Korea, Malaysia, and Thailand have made a substantial contribution to the automotive electronics industry. China and Japan are the primary automotive electronics suppliers in the Asia-Pacific region.

With few automotive electronics manufacturers, local providers have a great opportunity to meet domestic demand and attract investors. India has shown impressive growth in the automotive electronics industry, while China has the leading market share.

Key Takeaways

During the forecast period, Chinese automotive electronics business to expand at a CAGR of 5.5%.
From 2023 to 2033, the United Kingdom automotive electronics industry to register at a 3.3% CAGR.
Through 2033, the Indian automotive electronics market to record a CAGR of 6%.
Between 2023 and 2033, the United States might increase its market share by 21.8%.
Germany may control 7.6% of the automotive electronics industry between 2023 and 2033.
Between 2023 and 2033, Japan's share of the automotive electronics industry might reach 8.3%.
From 2023 to 2033, Australia to hold a 0.2% share of the automotive electronics industry.
The body electronics segment to acquire a substantial market share of 22.4% in the type category between 2023 and 2033.
The passenger cars sector to grab a significant market share of 68.9% in the vehicle type category between 2023 and 2033.
Competitive Landscape

Major automotive electronics manufacturers spend much on research and development to diversify their product lines, propelling the automotive electronics market even higher.

The automotive electronics manufacturers are engaging in various strategic measures to extend their worldwide footprint. These measures include important industry changes such as new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations.

Leading Automotive Electronics Manufacturers: A Profile of Leading Automotive Electronics Companies

Continental AG
DENSO Corporation
Hella GmbH & Co. KGaA
Infineon Technologies AG
Robert Bosch GmbH
Valeo Inc.
ZF Friedrichshafen AG
Hitachi Automotive Systems Ltd.
Visteon Corporation
Xilinx Inc.

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