Automotive Electronics Market, By Component (Infotainment Systems, Advanced Driver Assistance Systems (ADAS), Powertrain Electronics, Body Electronics, Chassis Electronics, Others (Lighting, Telematics, etc.)), By Vehicle Type (Passenger Cars, Commercial Vehicles, Electric Vehicles), By Sales Channel (Original Equipment Manufacturers (OEMs) and Aftermarket), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Feb 2025

Code : CMI4525

Pages :120

Formats :

Excel and PDF

Industry : Automotive and Transportation

Automotive Electronics Market Size and Trends

Global automotive electronics market is estimated to be valued at USD 276.44 Bn in 2025 and is expected to reach USD 489.65 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.5% from 2025 to 2032.

Automotive Electronics Market Key Factors

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Rising demand for advanced safety, infotainment, and comfort features from consumers can drive the automotive electronics market growth. Technologies such as advanced driver assistance systems (ADAS), autonomous driving, connected cars, and car-to-car communication can witness huge demand due to increasing focus of automakers on safety and connectivity.

Market Driver - Increasing demand for advanced driver assistance systems (ADAS) and electric vehicles (EVs)

The automotive industry has witnessed huge demand for vehicles equipped with advanced driver assistance systems and technologies that enhance vehicle and road safety. ADAS technologies like adaptive cruise control, lane departure warning, automatic emergency braking, blind spot monitoring, and park assist are becoming increasingly popular among consumers. Automakers are also proactively making these systems a standard feature in many new vehicles recognizing their importance. With advancements in technologies like radar, ultrasonic sensors, cameras, and computer vision, ADAS systems can now provide drivers with active assistance and automated features that take some control tasks away from the driver and make driving safer.

Electric vehicles are also transforming the automotive landscape, supported by government policies and regulations to curb vehicle emissions. There has been huge demand for electric passenger cars, and all major automakers now have ambitious EV production targets and product launch plans to switch a part of their fleet to electric. As battery technologies improve and costs decline, there will be increase in driving range of EVs that can help to overcome consumer range anxiety. The rapid expansion of public charging networks across cities and major highways is further incentivizing consumers to choose electric vehicles. Automakers are pouring billions into electrification of their lineups and development of advanced batteries, powertrains, and vehicle electronics that power EVs. This boosts automotive electronics industry as electronic components become more critical in electric vehicles.