PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1944415
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1944415
The Automotive Electronic Components Market Vehicle Type was valued at US$ 267,045.11 Million in 2024, expanding at a CAGR of 8.12% from 2025 to 2032.
The automotive electronic components market includes devices and systems that control, monitor, and improve vehicle performance, safety, and comfort, such as sensors, control units, infotainment systems, and power electronics. The rising adoption of electric and self-driving vehicles, as well as advanced driver-assistance systems (ADAS), which require sophisticated electronic integration, is driving market growth. A key trend is the growing emphasis on connected car technologies and in-vehicle infotainment, which improve user experience and vehicle intelligence. However, high production costs and complex integration challenges serve as impediments. Meanwhile, opportunities arise from lightweight, energy-efficient components and rising electrification demand, allowing manufacturers to innovate and enter new automotive markets.
Automotive Electronic Components Market- Market Dynamics
Rising Electric Vehicle Adoption Driving Growth in the Automotive Electronics Component Market
The increasing adoption of electric vehicles (EVs) is expected to drive significant growth in the automotive electronics market. EVs, which run on battery-stored electricity via electric motors, rely heavily on sophisticated electronic systems for optimal performance and energy efficiency. The transition to EVs and hybrid vehicles has been accelerated by post-COVID-19 recovery efforts and global initiatives aimed at net-zero emissions. For example, the U.S. The Energy Information Administration (EIA) reported that combined U.S. sales of hybrid, plug-in hybrid, and battery electric vehicles increased from 17.8% of total new light-duty vehicle (LDV) sales in Q1 2024 to 18.7% in Q2. This growing EV adoption is driving the automotive electronics industry forward.
The worldwide market is segmented on the basis of Application, Sales, Propulsion, Vehicle Type, Type, and Region.
In 2025, the safety systems segment accounted for the majority of market revenue. The demand for efficient, safe, and convenient driving experiences is increasing, as are stringent safety regulations. Continental AG, DENSO Corporation, Infineon Technologies AG, and Robert Bosch GmbH are developing safety systems vehicles to meet rising demand for light and heavy commercial vehicles. The segment's growth is fueled by factors such as increased focus on vehicle safety and an increase in the number of road accidents. For instance, in March 2023, Hyundai Motor India Limited debuted its new Hyundai Verna, which includes a level 2 ADAS system and 65 advanced safety features, among other things. The new Verna would also have Hyundai's Smart Sense safety features, which would include automated sensing technology with radars, cameras, and sensors on the road to detect obstacles and assist in corrective warnings and actions.
Based on the Vehicle Type, the passenger cars segment is the popular segment in the market share for automotive electronics in 2026, as passenger vehicle sales and production are higher than other vehicle segments like commercial vehicles and off-road vehicles. The sheer volume of passenger cars produced and sold over time drives demand for automotive electronics. According to the OICA, passenger car production in 2022 increased by 7.9% over the previous year's volume in 2021. Thus, increased passenger car production and sales result in increased market demand.
Automotive Electronic Components Market- Geographical Insights
The automotive electronics component market in North America is expected to grow significantly between 2025 and 2030. Several Automotive Electronics companies in the region are launching partnerships and collaboration initiatives to increase their demographic presence. For example, in January 2023, a U.S.-based automotive electronics supplier announced a technology collaboration with semiconductor and software manufacturer Qualcomm to develop an advanced automotive cockpit domain controller that will enable automotive companies' modern cockpits. Through this collaboration, the companies are assisting the automotive industry in transforming to a more intelligent, personalized vehicle experience.
United States Automotive Electronic Components Market- Country Insights
The US automotive electronics market is increasing due to the increasing technological advancements, strategic partnerships, and the rapidly growing adoption of electric vehicles. A few regional automotive electronics companies are expanding their markets through collaboration and innovation. A leading automotive electronics manufacturer partnered with a major semiconductor and software company in January 2023. Controllers update vehicle cockpits. These advanced cockpit designs create intelligent, personalized driving experiences that will shape the auto industry. Electric vehicles' rapid growth also drives this market. According to an industrial report, sales of new light-duty chargeable EVs in the U.S. have increased from 308,000 in 2020 to 608,000 in 2021, with more than 73% of that number accounting for battery electric vehicles. Electric vehicle adoption has increased demand for advanced automotive electronics like battery management systems, infotainment technologies, and safety features, making the US a key market for automotive electronics innovation and expansion.
The automotive electronic components market is highly competitive and characterized by rapid technological innovation, strategic collaborations, and strong global supply chains. Key players focus on developing advanced solutions such as sensors, control units, infotainment systems, and power electronics to meet rising demand for vehicle electrification, connectivity, and safety features. Competition is driven by product performance, quality, scalability, and the ability to integrate with emerging technologies like ADAS, autonomous driving, and electric powertrains. Manufacturers also emphasize cost optimization and regulatory compliance to address global emission and safety standards. Major companies in this market include Alpine Electronics, Inc., Continental AG, Magna International Inc., and Infineon Technologies, each leveraging extensive R&D capabilities and broad OEM partnerships to sustain competitive advantage and expand market reach.
In March 2023, Infineon Technologies AG expanded its partnership with Delta Electronics, Inc., an energy and power management company, to deepen its innovative activities and provide higher density and more efficient solutions for the growing electric vehicle market. The partnership would provide EV drivetrain applications such as on-board chargers, DC-DC converters, and traction inverters, as well as a diverse range of components such as low-voltage and high-voltage microcontrollers, discrete and modulus.
In January 2023, ZF Friedrichshafen AG has announced the launch of Smart Camera 6, a next-generation camera for automated driving and safety systems. The primary goal of Smart Camera 6 is to meet the demand for 3D surround view and interior monitoring systems through the use of Image Processing Module systems.