Automotive Electronics Market Siae to Attain USD 546.24 Billion by 2034

The global automotive electronics market size surpassed USD 282.63 billion in 2024 and is predicted to reach around USD 546.24 billion by 2034, growing a CAGR of 6.81% from 2025 to 2034.

Highlights of the Automotive Electronics Market

• Asia Pacific dominated the global automotive electronics market in 2024.
• North America is anticipated to grow at the fastest rate in the market during the forecast period.
• By component, the current carrying devices segment holds a dominant presence in the automotive electronics market in 2024.
• By component, the sensors segment is anticipated to grow at the fastest rate in the automotive electronics market during the forecast period.
• By application, the safety systems segment holds a dominant presence in the automotive electronics market in 2024.
• By application, the advanced driver assistance system (ADAS) segment is anticipated to grow at the fastest rate in the automotive electronics market during the forecast period.
• By sales channel, the OEM segment holds a dominant presence in the automotive electronics market in 2024.
• By sales channel, the aftermarket segment is anticipated to grow at the fastest rate in the automotive electronics market during the forecast period.

Industry Valuation and Growth Rate Projection

Automotive electronics refers to the application of electronic systems and elements in vehicles for numerous purposes, including vehicle control, communication, safety, entertainment, and connectivity. These electronic systems and elements are designed to improve the performance, comfort, efficiency, and overall user experience of automobiles. Governments globally are implementing stringent regulations targeted at enhancing vehicle safety and reducing emissions, which is contributing to a rise in the incorporation of electronic systems for better performance and compliance.

Automotive Electronics Market: Stats and Figures

• In October 2023, Continental, working with DeepDrive, generated a wheel hub drive with incorporated brakes for its application in electric vehicles.

Industry Leader Announcements

• Steve Sanghi, Microchip CEO

Microchip CEO Steve Sanghi said he completed several actions as part of his nine-point turnaround plan, including refining the company's distribution strategy, re-engaging with customers, and changing its long-term business model to reflect current operating conditions.

How AI Has Benefitted the Automotive Electronics Market

The significance of artificial intelligence (AI) in the automotive field extends beyond manufacturing, revolutionizing automotive retail as well. This article dives into the influence AI has had on the automotive industry so far, considering its technological developments and benefits. The incorporation of AI technology into vehicles has remarkably enhanced the driving experience. Real-time monitoring systems are due to AI developments. Automotive firms continuously innovate, adding the latest AI-driven features to their vehicles, including preventive maintenance alerts and damage detection, setting the latest trends in the auto industry.

Recent Developments

• In November 2024, Renesas Electronics Corporation started the latest generation of automotive fusion system-on-chip (SoCs), serving multiple automotive domains including in-vehicle infotainment (IVI), Advanced Driver Assistance Systems (ADAS), and gateway applications on a single chip.

Geographical Insights

The automotive electronics market is experiencing significant growth, with Asia Pacific maintaining its position as the dominant region while Europe emerges as a rapidly growing market. The North America region is projected to be the fastest-growing in the automotive electronics market during the forecast period.

Asia Pacific

Asia Pacific dominated the global automotive electronics market in 2024. The presence of leading semiconductor producers and a focus on research and development in areas such as supportive government policies, ADAS, and autonomous vehicles, including incentives for EV acceptance and regulations encouraging safety features, led to market growth.

Europe

Europe is experiencing rapid growth in the automotive electronics market during the forecast period. Europe is experiencing rapid expansion in the automotive electronics market, mainly driven by the increasing requirement for electric and hybrid vehicles, government initiatives encouraging sustainable transportation, and strict emission regulations. The increasing target of vehicle safety features, such as Advanced Driver Assistance Systems (ADAS), and the increasing need for connectivity solutions are also boosting market growth.

North America

North America is projected to be the fastest-growing automotive electronics market during the forecast period. The North American automotive electronics market is experiencing fast growth due to factors such as increased need for electric vehicles, advanced driver-assistance systems (ADAS), and connected car technologies. The rising acceptance of electric vehicles (EVs) is a major driver, as EVs need sophisticated electronic systems for motor control, battery management, and energy efficiency.

Competitive Landscape

The automotive electronics market is featured by intense competition amongst major key players and new entrants, boosted by technological developments and evolving consumer preferences. The market is heavily influenced by technological advancements, with firms investing in R&D to advance innovative electronic solutions.

• Company Name: Texas Instruments Incorporated
• Year of Incorporation: 1930
• Headquarters: Dallas, Texas

Texas Instruments Inc. (TI) programs, produces, and delivers semiconductors. The firm provides application-specific standard semiconductor products via its analog and embedded processors divisions. TI serves automotive, enterprise systems, communications equipment, industrial, personal electronics, and other markets.

• Company Name: Panasonic Corporation
• Year of Incorporation: 1935
• Headquarters: Kadoma, Osaka, Japan

Panasonic Holdings Corp (Panasonic), formerly Panasonic Corp, generates, produces, sells, and services a range of electric and electronic goods. It also provides electronic components, mounting machines, PCs and tablets, welding equipment, projectors, electric motors, batteries, electronic components, semiconductors, electronic materials, and LCD panels.

• Company Name: Hitachi Automotive Systems, Ltd
• Year of Incorporation: 2009
• Headquarters: Chiyoda-ku, Tokyo, Japan

Hitachi Ltd (Hitachi) is a multinational conglomerate with an existence in data technology, electronics, social infrastructure, power systems, industrial systems, and construction machinery. The firm manufactures and sells data and telecom systems, automotive systems, smart life, construction machinery, and eco-friendly systems.