Automotive Electronics Global Market Report 2024

The automotive electronics market size has grown strongly in recent years. It will grow from $274.67 billion in 2023 to $299.56 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. During the historical period, growth can be attributed to several factors, including robust economic expansion in emerging markets, a surge in demand for commercial vehicles, increased interest in passenger vehicles, and a rise in disposable income among consumers.

The automotive electronics market size is expected to see strong growth in the next few years. It will grow to $420.18 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. Forecasted growth is fueled by increased demand for electric vehicles, higher automobile production, government support, and a rising need for safety features. Major trends include AI technology, advanced power electronics, augmented reality integration, innovative product launches, and strategic partnerships for expanded product portfolios and revenue growth.

The automotive electronics market is poised for growth, driven by the increasing adoption of electric vehicles. Electric vehicles, powered by electricity stored in batteries, have gained significant traction, fueled by efforts to combat COVID-19 and aspirations to achieve net-zero emissions. Automotive electronics play a crucial role in electric vehicles, facilitating the implementation of electric powertrain systems that deliver high power to these vehicles. According to the Global EV Outlook 2022 report, electric vehicle sales surged in 2021, doubling from the previous year and reaching a record 6.6 million units. The global sales of electric cars in 2021 reached 6,600,000 units, marking a substantial increase from 2,980,000 units in the previous year. Consequently, the rising penetration of electric vehicles is a key driver propelling the growth of the automotive electronics market.

Government support is anticipated to be a significant factor driving the growth of the automotive electronics market. Governments worldwide are increasingly providing substantial support and incentives to encourage the development and adoption of electric vehicles (EVs) and advanced automotive technologies. These initiatives encompass financial incentives, tax breaks, research funding, and regulatory measures aimed at reducing emissions and enhancing vehicle safety. For instance, in July 2023, Chinese authorities announced measures aimed at stimulating vehicle and electronics sales to support economic recovery. In July 2022, the Brazilian government approved a decree for a new program, Inovar-Auto, designed to promote innovation in vehicle technology. Inovar-Auto encourages industry competitiveness by incentivizing automakers to produce more efficient, safer, and technologically advanced vehicles while investing in Brazil. Robust government support is expected to expedite the shift to electric and connected vehicles, thereby driving the demand for automotive electronics.

The automotive electronics market is witnessing a noteworthy trend with the increasing focus on technological advancements in in-vehicle safety. Leading companies in the automotive electronics sector are prioritizing the development of new technological solutions to enhance their market positions. In December 2021, Renesas Electronics, a Japan-based semiconductor manufacturer, exemplified this trend by launching two new microcontrollers (MCUs) specifically designed for automotive actuator and sensor control applications. These MCUs contribute to the advancement of next-generation electronic and electrical (E/E) architecture at the edge. Renesas broadened its RL78 Family of low-power 16-bit MCUs with the introduction of RL78/F24 and RL78/F23, providing highly reliable and high-performance solutions for a range of systems from actuators to zone control.

Product launches represent another key trend in the automotive electronics market, with major players actively introducing new and innovative products to expand their product portfolios and bolster their market positions. In November 2022, Melexis, a Belgium-based microelectronics engineering company, unveiled a new series of integrated pressure sensor chips tailored for automotive engine management. The MLX90824 in this series measures absolute pressure and delivers a SENT protocol digital output signal, while the MLX90822 provides an analog voltage output signal. These devices are factory-calibrated to measure pressure over a full-scale range of 1 bar to 4 bar, showcasing Melexis' commitment to introducing cutting-edge products in the automotive electronics market.

In August 2022, MKS Instruments, a US-based manufacturer of industrial process instruments, acquired Atotech for $4.4 billion in cash and MKS common stock. This strategic acquisition of Atotech, a Germany-based company specializing in automotive electronics, positions MKS to expedite the development of future generations of advanced electronic devices.

Major companies operating in the automotive electronics market report are Denso Corporation, Robert Bosch GmbH, ZF Friedrichshafen AG, Hitachi Ltd., Aptiv PLC,Continental AG, Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics N.V., Texas Instruments, Delphi Automotive, Mahindra Electric, Tata Elxsi, BYD Auto, Huawei Technologies, Tencent Auto, Baidu, Contemporary Amperex Technology Co. Limited, Panasonic Automotive, Aisin Seiki Co., Ltd., Sony Corporation, Pioneer Corporation, Electro 80, Autron Automotive Electronics, REDARC Electronics, Integrated Micro-Electronics, Inc. (IMI), Valeo, Faurecia, Actia Group, Exagan, Hella GmbH and Co. KGaA, Brembo, Marelli Holdings Co., Ltd., Renesas Electronics Europe, Smiths Group, AVTOVAZ, Elektrobit (EB) Russia, Autoliv Romania, Bitdefender, Elba Timisoara, Can-Pack Group, Škoda Auto, Honeywell Czech Republic, Autown Classics, Prevail, LLC, Exkalibr, Auto Concepts, Metalenz Inc., Sila Nanotechnologies, Actnano, Citrine Informatics, PreAct Technologies, Manufacturing Technology, Inc., Nidec Mobility Brazil Ltda, Martins Store, Electronic Components Ltd., Silva, Express Micro Informatica, Anno Domini Ltda, Bom Papel Import E Export Ltda, Amp Intl Fzc, Manoj Electronics Group of Companies, Prime Motors, Carhome Services Llc, Chapin Enterprise Co., Ltd., Shenzhen Vigreat Electronic Co., Ltd., Essa Al Qassab Trading, Seveni Pros Auto, HDM Auto Electrical Parts, Lances Auto Repairs, Enduro Gearbox, Automax Service and Fitment Centre, Maidstone Auto Electrical, Sonic Vision Technologies Pty Ltd.

Asia-Pacific was the largest region in the automotive electronics market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive electronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Key types of automotive electronics encompass advanced driver assistance systems, body electronics, entertainment systems, powertrain components, safety systems, and other specialized functionalities. The powertrain comprises components such as electronic control units, sensors, and current-carrying devices that propel the vehicle forward. Different vehicle categories, including light commercial vehicles, passenger vehicles, heavy commercial vehicles, among others, are distributed through original equipment manufacturers (OEMs) and aftermarket channels.

The automotive electronics market research report is one of a series of new reports that provides automotive electronics market statistics, including automotive electronics industry global market size, regional shares, competitors with an automotive electronics market share, detailed automotive electronics market segments, market trends and opportunities, and any further data you may need to thrive in the automotive electronics industry. This automotive electronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive electronics market consists of sales of adaptive cruise control, navigation systems, adaptive light control, actuators, processors, and microcontrollers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.


The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.