Automotive Electronics Market 2030: The Role of South Korea in Smart Mobility Solutions

The global automotive electronics market was valued at USD 262.60 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2030. A key factor contributing to this growth is the increasing integration of advanced safety systems in vehicles. Technologies such as automatic emergency braking, airbags, parking assistance systems, and lane departure warning are becoming more widely implemented to reduce road accidents. The growing adoption of these safety features is expected to significantly boost demand for automotive electronics throughout the forecast period.

In addition to these safety systems, other critical features like emergency call systems, alcohol ignition interlocks, and accident data recorders are also gaining traction in the automotive market. These technologies play an important role in protecting in-vehicle passengers and enhancing overall road safety, and their rapid adoption is expected to further drive the market's growth over the coming years.

Gather more insights about the market drivers, restrains and growth of the Automotive Electronics Market

Another major driver of the automotive electronics market is the rising demand for electric vehicles (EVs). As more consumers transition from traditional internal combustion engine (ICE) vehicles to electric vehicles, there is a corresponding increase in the demand for electronic systems to support these vehicles. This shift has led to a higher need for specialized components such as battery management systems, electric powertrains, and other EV-related electronic technologies.

In addition to the growing consumer demand for EVs, government regulations and financial incentives have also played a key role in supporting the automotive electronics market. Policies aimed at reducing carbon emissions, along with various subsidies and funding programs for electric vehicle development, have positively impacted the growth of the automotive electronics sector. These combined factors are expected to drive the continued expansion of the market through 2030.

Regional Insights

The automotive electronics market in North America is expected to see significant growth from 2024 to 2030. Several leading automotive electronics companies in the region are focusing on partnerships and collaborations to expand their market reach. For example, in January 2023, a U.S.-based automotive electronics supplier partnered with semiconductor and software manufacturer Qualcomm to develop an advanced automotive cockpit domain controller. This technology is designed to support the creation of modern, intelligent, and customizable automotive cockpits, enhancing the overall vehicle experience.

U.S. Automotive Electronics Market Trends

The U.S. automotive electronics market is projected to grow at a CAGR of 9.9% from 2024 to 2030, driven by the increasing adoption of connected cars. These vehicles, equipped with internet connectivity, can communicate with other devices, including smartphones, other vehicles, and even infrastructure. As connected cars require complex electronic systems, this trend is a major factor driving the demand for automotive electronics in the U.S.

Asia Pacific Automotive Electronics Market Trends

Asia Pacific dominated the automotive electronics market with a 41.4% share in 2023. The growing demand for advanced electronics in vehicles, combined with rising consumer purchasing power and an increased focus on safety features, is driving growth in the region. Additionally, the region’s automotive manufacturers are modernizing their production technologies, with companies like Mercedes Benz, General Motors, and Volkswagen shifting plants to developing countries. Asia Pacific is also home to key semiconductor suppliers and enjoys easy access to power electronics components, making it the leading regional market.

In 2023, China accounted for 51.3% of the Asia Pacific automotive electronics market revenue. Government incentives and regulations promoting new energy vehicles (NEVs) are driving the demand for electric vehicles (EVs), which is expected to further fuel the automotive electronics market. Additionally, China’s investment in autonomous driving technology, including sensors, LiDAR, radar systems, and AI algorithms, is a key growth factor.

India’s automotive electronics market is anticipated to grow at a CAGR of 8.7% from 2024 to 2030. Technological advancements are driving the development of innovative products like infotainment systems, navigation units, and advanced driver assistance systems (ADAS), propelling market growth.

Japan’s automotive electronics market is experiencing growth due to government initiatives that promote EV adoption, including tax incentives, subsidies, and regulations. The government’s goal to have EVs represent 50% of new car sales by 2030 is expected to drive further demand.

Europe Automotive Electronics Market Trends

Europe’s automotive electronics market was valued at USD 65.02 billion in 2023. Consumers in Europe are increasingly seeking vehicles with advanced connectivity features such as smartphone integration, navigation, and entertainment systems. Consequently, automakers are heavily investing in the development of sophisticated infotainment systems to meet these demands.

The U.K. automotive electronics market accounted for 13.1% of Europe’s total revenue in 2023. There is a growing focus on enhancing vehicle safety through the integration of advanced systems like collision avoidance, lane departure warnings, and emergency braking, which is expected to drive the demand for automotive electronics in the region.

Germany’s automotive electronics market is expected to grow at a CAGR of 6.7% from 2024 to 2030. The country’s involvement in the global automotive supply chain is fueling the adoption of electronic components and technologies that meet international standards, further supporting market growth.

In France, the automotive electronics market is projected to grow due to the rising demand for personalized vehicle features. Innovations in automotive electronics, such as customized audio units, navigation systems, and heads-up displays, are expected to drive the market.

MEA Automotive Electronics Market Trends

The automotive electronics market in the Middle East and Africa (MEA) is expected to reach USD 17.44 billion by 2030. The demand for connected cars in the region is rising, as consumers seek vehicles equipped with advanced features like infotainment systems, ADAS, and V2V/V2I communication capabilities.

In Saudi Arabia, the market is being driven by the growing demand for IoT technologies and the integration of sensors into vehicles for enhanced safety and performance. These sensors monitor vehicle health, tire pressure, and other parameters, contributing to the overall improvement of vehicle safety and efficiency.

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Key Companies & Market Share Insights

Some of the key players operating in the market includeDenso Corporation, Robert Bosch GmbH, Xilinx, Inc., Continental AG, Hella GmbH & Co., ZF Friedrichshafen AG, and Infineon Technologies AG.

Key Automotive Electronics Companies: