Europe Automotive Electronics Market

Europe Automotive Electronics Market (2023 to 2028)

The European automotive electronics market is expected to reach a valuation of USD 112.62 billion by 2028 and USD 80.87 billion in 2023, growing at a CAGR of 6.84% from 2023 to 2028.

Automotive electronics is a system developed electrically for road vehicles, which plays a vital role in the control of the vehicle's engine. Systems such as engine ignition (sparks, synchronization), fuel injection, music, communication systems, exhaust control, heating/air conditioning, navigation systems, and safety systems are a few functions that are electronically controlled in the vehicle. Automotive electronics originated from the transition to advanced security systems. Due to technological advances, automotive electronics are becoming popular and increasingly adopted by consumers.

Technological innovations in automotive electronic systems help increase vehicle efficiency and improve user connectivity. Rising automobile production and the need for enhanced protection are likely to drive the demand for these systems in the coming years. The European automotive electronics market is driven primarily by the growing demand for premium audio systems combined with advanced driver assistance systems. The recent movement of the automotive industry towards a policy that offers luxury and comfort is a crucial factor in revitalizing the automotive electronics market. Manufacturers in this market are integrating superior digital microchip processors and chips into today's audio systems. As the demand for audio systems technologies increases, such as hands-free communication systems with Bluetooth, station guidance systems, energy-efficient systems, vehicle noise compensation, and touchscreen navigation systems, the European automotive electronics market continues to excite market participants and new entrants. 

In addition, the introduction of new technologies, such as emergency call systems, increased interest in vehicle safety, alcohol ignition interlocks, and accident recording systems, will drive this market growth over the estimated period. The constant use of various electronic components by car manufacturers has created new business opportunities for suppliers. High consumer purchasing power and lifestyle changes are expected to support the automotive electronics market soon. 

However, the growing trend of information and entertainment in vehicles will set new horizons for growth soon, which may limit the expansion of the automotive electronics market.

REPORT COVERAGE:

This market research report on the European automotive electronics market is segmented and sub-segmented into the following categories.

Europe Automotive Electronics Market - By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Based on the vehicle type, Europe's automotive electronics market is divided into Passenger Cars and Commercial Vehicles. Of these, the passenger cars segment accounts for the prominent share, owing to the rising population, urbanization, and usage in most Western countries. However, in the foreseen years, with the adoption of ADAS and favorable government laws, the commercial vehicles segment will contribute a considerable share to overall business development.

Europe Automotive Electronics Market - By Sales Channel:

• OEM          
• Aftermarket

Based on the sales channel, Europe's automotive electronics market is separated into Original Equipment Manufacturers (OEM) and Aftermarket. The sales in the OEM segment are relatively high compared to the aftermarket sales in 2018, attributing to the consumer concern to improve the performance of cars with the addition of new and advanced components that are purchased directly from renowned manufacturers.

Europe Automotive Electronics Market - By Application:

• Advanced Driver Assistance System (ADAS)
• Power Trains
• Security Systems
• Entertainment
• Body Electronics

Based on the applications, the European automotive electronics market is divided into Advanced Driver Assistance Systems (ADAS), power trains, security systems, entertainment, and body electronics. In 2018, the security system sector occupied the largest market share. The actions taken by regulatory committees in several countries to prevent accidents are expected to accelerate the growth of the segment. Nonetheless, the ADAS and infotainment sectors will be the most attractive in the coming years.

Europe Automotive Electronics Market – By Country:

• United Kingdom
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Rest of Europe

In the European automotive electronics market, information and entertainment applications are in high demand due to their implementation in luxury and passenger cars. With a focus on providing the luxury and comfort features offered by leading car manufacturers in European countries such as Germany and Italy, the prospects for industrial development are even more significant. Strict European regulatory frameworks related to vehicle safety and road safety are creating some growth opportunities for the automotive electronics market in this area.

KEY MARKET PLAYERS:

Delphi Technologies, Continental AG, Bosch Group, Hyundai Mobis, Johnson Control, ZF Friedrichshafen AG, Hitachi Automotive Systems, Denso Corporation, Autoliv, Inc., Samsung Group, Lear Corporation are some of the major key market players involved in the European automotive electronics market.

RECENT HAPPENINGS IN THE MARKET:

• In September 2017, Bosch announced a partnership with Nikola Motor Company for the development of powertrain products for commercial vehicles.
• In December 2017, Lear Corporation acquired the Israel-based GPS developer EXO Technologies to invest in acquisitions to strengthen its advanced electronic portfolio. The company focuses on expanding its main seating business and integrating intelligent systems within vehicles.