Automotive Electronics Market Size Worth $410.13 Billion by 2025
The global automotive electronics market size is expected to reach USD 410.13 billion by 2025, according to a study conducted by Grand View Research, Inc. It is estimated to expand at healthy CAGR of 8.6% during the forecast period. Growing adoption of safety systems to curb road fatalities and increasing demand for state-of-the-art vehicles are expected to fuel the automotive electronics market. Strict government regulations on fuel emission standards would also drive the market. Furthermore, transition towards advanced safety systems is expected to help boost the global market growth over the next few years. Some of such advanced safety systems include alcohol ignition interlocks, emergency call systems, and accident data recorder systems.
Regulatory bodies across various countries are framing new guidelines for automobile manufacturers mandating the installation of automated safety systems in vehicles due to increasing cases of road accidents. For instance, the European Commission and China launched New Car Assessment Programme (NCAP), which mandates the installation of automatic emergency braking and Lane Departure Warning (LWD) features in vehicles, thus, improvising the safety standards. In addition, companies offering infotainment solutions are also integrating features, such as Advanced Driver-Assistance Systems (ADAS) along with the infotainment systems. For instance, NVIDIA Corporation introduced the DRIVE CX platform. DRIVE CX is a hardware and software solution that can be used for infotainment, as well as ADAS solutions, in next generation autonomous vehicles.
Asia Pacific led the market in 2017 and is expected to continue its dominance over the forecast period. The growth in the region is accredited to the presence of emerging automotive manufacturing countries, such as China, Japan, and India. Growing demand for luxury and hybrid vehicles and implementation of new government regulations regarding safety standards and autonomous technologies have also contributed toward increasing the demand for automotive electronics in APAC. The demand for interactive systems, such as embedded vision systems, capable of real-time image tracking has been on the rise, specifically in North America and Europe. For instance, the U.S. Department of Transportation has mandated safety equipment, such as backup camera in all new vehicles, thus, increasing vehicle costs by USD 200 for the new base models.
To read more Click Here
Source: Grand View Research