Global automotive under-the-hood electronics market: Projected increase due to the adoption of the autonomous vehicle concept by 2020

Renewable energy


Automotive under-the-hood electronics: Key market research findings

  • Electrification of automotive mechanics drives market growth
  • APAC dominates the market geographically
  • Key vendors – Bosch, Continental, Denso, Delphi, and Hitachi

Technavio’s market research analysts predict the global automotive under-the-hood electronics market to grow at a CAGR of around 10% between 2016 and 2020. The electrification of automotive mechanics is the primary driver for growth in the market. Regulations pertaining to vehicle emissions imposed by government bodies across the globe coupled with the demand for vehicle safety and increased performance from customers is fueling the increase in electronic content in vehicles. During 2015, the APAC region dominated the global automotive under-the-hood electronics market by accounting for almost 43% of the overall market space. The market in this region is flourishing owing to the rapidly growing automotive industry in APAC.

The new market research report from Technavio presents a breakdown and analysis of the automotive under-the-hood electronics segments based on the functionality.

“The increasing adoption of the autonomous vehicle concept by automotive electronics industry is an ongoing trend in the market. Major OEMs and Tier-1 suppliers have initiated projects to commercialize this concept of autonomous vehicles. Audi, Ford, Continental, Bosch, and Delphi are some of the vendors working towards making autonomous driving a reality,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.

In 2015, the hood control modules and engine control units (ECUs) under the hood held a share of 55% to become the dominant shareholder in the global market. ECUs are used in transmission control system, fuel systems, engine management system, anti-lock braking system, climate control system, airbag control, and steering systems. They collect information from sensors, interpret them, and adjust functions accordingly and plays a crucial role in the optimizing engine performance, fuel efficiency, and emissions, safety, and comfort of a vehicle.

The key vendors in the market include Bosch, Continental, Denso, Delphi, and Hitachi. Owing to the increasing electronic content in vehicles, the OEMs are collaborating with other industry experts to sustain their market presence. They are investing in research activities and engineering projects to differentiate their products from other vendors. Competition in the market is expected to intensify in the coming years with the increase in technological innovations and a growing number of suppliers.

A more detailed analysis is available in the Technavio report, Global Automotive Under-the-hood Electronics Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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