Vehicle Under the Hood Electronic Global Market Report 2025

The vehicle under the hood electronic market size has grown strongly in recent years. It will grow from $36.99 billion in 2024 to $39.84 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth observed during the historic period is attributed to the increasing demand for fuel efficiency, the implementation of stricter automotive safety regulations, the rising adoption of ECUs, greater integration of electronics in vehicles, and growing consumer preference for advanced features.

The vehicle under the hood electronic market size is expected to see strong growth in the next few years. It will grow to $52.87 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. In the forecast period, growth is expected to be driven by the rising demand for electric vehicles, wider adoption of autonomous driving technologies, the expansion of connected vehicle technologies, and stricter emission regulation policies. Key trends during this period include advancements in battery management systems, innovations in engine control technologies, development of powertrain electronics, enhanced integration of AI-based control systems, and improvements in thermal management solutions.

The growing adoption of electric vehicles (EVs) is expected to drive the expansion of the vehicle under-the-hood electronics market in the coming years. Electric vehicles are automobiles powered fully or partially by electric motors that use energy stored in rechargeable batteries instead of conventional internal combustion engines. The rise in EV adoption is fueled by increasing environmental awareness and stricter carbon emission regulations. Under-the-hood electronics in EVs manage power distribution, battery systems, thermal control, and vehicle control units, ensuring safe and efficient performance. For example, according to the International Energy Agency, in 2023, electric vehicle sales increased by 3.5 million units compared to the previous year, reflecting a 35% year-over-year growth. Thus, the increasing prevalence of electric vehicles is boosting the demand for vehicle under-the-hood electronics.

Key players in the vehicle under-the-hood electronics market are pursuing strategic partnerships to enhance technology integration and broaden market reach. A strategic partnership involves collaboration between two or more organizations to combine resources, expertise, and efforts toward shared goals. For instance, in January 2024, Qualcomm Incorporated, a US-based semiconductor company, and Robert Bosch GmbH, a Germany-based engineering and technology firm, launched an integrated cockpit and Advanced Driver Assistance Systems (ADAS) platform. This platform unites previously separate infotainment and ADAS functions into a single, software-driven central vehicle computer, powered by Qualcomm’s Snapdragon Ride Flex SoC. The solution enables automakers to provide features such as automated parking, lane detection, personalized navigation, voice assistance, and multi-display control within one scalable system, reducing hardware complexity and cost while supporting vehicles from entry-level to premium segments.

In January 2025, NXP Semiconductors N.V., a Netherlands-based semiconductor manufacturer, acquired TTTech Auto for $625 million. This acquisition strengthens NXP’s automotive safety and control offerings by integrating TTTech’s real-time safety software and middleware into NXP’s automotive chip portfolio. TTTech Auto, based in Austria, specializes in safety software and real-time networking solutions for automotive electronic systems.

Major players in the vehicle under the hood electronic market are Robert Bosch GmbH, Panasonic Corporation, ZF Friedrichshafen AG, Denso Corporation, Hyundai Mobis Co. Ltd., Continental Aktiengesellschaft, Thyssenkrupp AG, Mitsubishi Electric Corporation, Honeywell International Inc., Valeo S.A., NXP Semiconductors N.V., JTEKT Corporation, SKF AB, Toyoda Gosei Co. Ltd., ALPS ALPINE Co. Ltd., Joyson Safety Systems Co. Ltd., Tokai Rika Co. Ltd., Nexteer Automotive Group Limited, Johnson Electric Holdings Limited, and NSK Ltd.

Asia-Pacific was the largest region in the vehicle under the hood electronic market in 2024. The regions covered in vehicle under the hood electronic report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The vehicle under-the-hood electronic market research report is one of a series of new reports that provides vehicle under-the-hood electronic market statistics, including the vehicle under-the-hood electronic industry global market size, regional shares, competitors with the vehicle under-the-hood electronic market share, detailed vehicle under-the-hood electronic market segments, market trends, and opportunities, and any further data you may need to thrive in the vehicle under-the-hood electronic industry. This vehicle under-the-hood electronic 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.

Under-the-hood vehicle electronics are electronic systems and components installed in the engine compartment that control essential functions, including engine performance, transmission management, emissions, power distribution, and, for hybrid and electric vehicles, power conversion and battery management. These electronics are designed to operate reliably under extreme conditions such as high temperatures, vibration, and exposure to fluids, serving as a critical foundation for modern vehicles by ensuring efficiency, safety, and regulatory compliance.

The primary types of under-the-hood vehicle electronics include automotive control modules and electronic control units (ECUs) as well as automotive under-the-hood sensors. Control modules and ECUs are electronic devices that monitor, manage, and optimize engine, transmission, emission, and powertrain operations, ensuring optimal vehicle performance, efficiency, and safety. They consist of various components, including sensors, actuators, control units, and wiring harnesses, and are used across passenger cars, commercial vehicles, and electric vehicles. These electronics are supplied through both original equipment manufacturers (OEMs) and the aftermarket, with applications in engine control, transmission management, emission regulation, and overall powertrain control.

The countries covered in the vehicle under the hood electronic market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle under the hood electronic market includes of sales of battery management systems, ignition systems, electronic fuel injection systems, turbochargers and boost controllers. 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.

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