- Connected vehicles are increasingly being equipped with advanced switches, sensors, and body electronic systems to improve user connectivity
- OEMs have been collaborating with automotive component manufacturers to provide advanced systems
Automotive electronics market size will surpass a valuation of $645 billion by 2030. Pertaining to the growing demand for security and infotainment systems in vehicles, as per a report by Decresearch, automotive electronics market trends are poised to gain immense momentum over 2019-2030.
“Automakers are incorporating advanced infotainment systems in vehicles to achieve great efficiency. Intensifying concerns about passenger and vehicle safety have augmented the deployment of these systems. Such favorable factors are likely to impel automotive electronics industry share,” read the report.
Factors aiding growth of automative electronics industry
Governments have been enacting stringent rules and regulations to curb road accidents. Automakers have been implementing safety systems, such as ADAS in modern vehicles to be in line with such regulations.
Developed regions of Europe and North America have stringent regulatory framework for vehicle and road safety, which is further generating lucrative growth opportunities for automotive electronics industry.
Incorporation of infotainment systems in vehicles has gained traction to answer the demand for miscellaneous features, including large display screens. Lately, customers have been showcasing greater preference for vehicles with added comfort and luxury, which has encouraged automakers to install voice recognition, digital radio, high-end radios, rear-seat entertainment, and various other automotive electronic components in vehicles.
Also, surging deployment of infotainment systems in vehicles for displaying vehicle details is expected to stimulate automotive electronics market outlook.
What are automotive companies doing
Automotive companies, striving to capture a broader customer base, are offering technologies, comfort, and enhancing driving experience. OEMs have been collaborating with automotive component manufacturers to provide advanced systems in their latest vehicles.
Some advanced technologies which have found rapid deployment are parking assistance, powertrain, head-up displays, etc. For example, in 2017, Bosch announced partnership with Nikola Motor Company to develop powertrain products for commercial vehicles.
Connected vehicles are increasingly being equipped with advanced switches, sensors, and body electronic systems to improve user connectivity. Incorporation of advanced automotive electronics enhance mobility, safety, and environmental benefits.
Governments of multiple countries have been introducing various initiatives to encourage development of connected vehicles and amplify road safety. For instance, the U.S. Department of Transportation has suggested making vehicular communication and connected car technology a legal need.
As per the law proposed, integration of V2V communication in cars will be compulsory for automobile manufacturers from 2021 onwards.
Acquisitions and collaboration strategy
Automotive market players are following various strategies, such as acquisitions, product innovations, collaborations, and mergers.
For instance, in 2017, Lear Corporation had acquired EXO Technologies to reinforce its advanced electronics portfolio. The company has been intending to develop its integrating intelligent systems and core seating business with vehicles.
