Auto electronics: Key market research findings
- APAC dominates the global auto electronics market geographically
- Interior components segment accounts for the majority share of the market revenue
- Key vendors—Continental, Denso, Aisin Seiki, Valeo, and Delphi
The market research analysts at Technavio estimate the global auto electronics market to grow at a CAGR of over 14% between 2016 and 2020. The primary driver for the market is the advent of electronic or hybrid substitutes for mechanical and hydraulic systems in cars and commercial vehicles. Drive-by-wire and hybrid vehicular technologies are gradually pushing vehicular electronics to the creation of an autonomous car electronically driven by the on-board computers. During 2015, the APAC region dominated the global auto electronics market by occupying almost 52% of the overall market share. Countries such as India, China, Japan, and Indonesia are expected to account for the bulk of the sales during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the auto electronics segments by components.
“The latest trend in the market is the rapid electrification of vehicles. Electrification of vehicles includes the installation of powertrain, infotainment, connected vehicles, safety systems, and electronics, among others. Electrification enables original equipment manufacturers (OEMs) to generate earnings from the hybrid electric vehicle systems, hybrids, scale economies, and cost reduction by manufacturing in low-cost destinations. This also gives part suppliers a chance to diversify and increase bargaining power with other automakers,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
In 2015, the interior components segment accounted for the majority share of the market and is expected to reach almost $630 billion by 2020. The growing emphasis on safety and driving experience, both from regulations and consumers, is likely to boost growth in the interior components market globally. Manufacturers are actively investing in the development of advanced interior components to meet this increase in demand.
The key vendors in the global auto electronics market include Continental, Denso, Aisin Seiki, Valeo, and Delphi. The global auto electronics market is highly competitive due to a constantly evolving market. The vendors compete on the basis of cost, product quality, reliability, and aftermarket service.
A more detailed analysis is available in the Technavio report, Global Auto Electronics Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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