APAC Automotive Electronics Market

APAC Automotive Electronics Market Size (2024 to 2029)

The APAC automotive electronics market size is expected to reach USD 64.11 billion in 2024 and reach USD 101.59 billion by 2029, growing at a CAGR of 9.62% from 2024 to 2029.

Automotive electronics include an electric drive system integrated into the vehicle. High penetration of electric and hybrid vehicles is expected to be an important area of ​​concern for electronic system providers. Technological advances such as EVs and active electric suspensions in the automotive industry are expected to activate the application space for power electronic systems in the automotive sector. Airbags, electronic fuel injection, infotainment, and ADAS optimize the overall efficiency of the combined system in the main areas where automotive electronic systems are used. 

MARKET DRIVERS

The adoption and integration of advanced safety systems, such as airbags, automatic emergency braking (AEB), and lane change warning (LDW), are expected to stimulate the demand for automotive electronic products in the coming years. The APAC automotive electronics market is driven primarily by the growing demand for premium audio systems combined with advanced driver assistance systems. The shift from technology to advanced security systems is expected to further increase demand in the coming years. With the inclusion of road safety systems and increased demand for advanced vehicles, strict government regulations on fuel emission standards are expected to lead the market. The essential electronic systems used to ensure passenger safety include backup detection systems, airbags, on/off switches for airbags, power absorption steering systems, electrochromic mirrors/mirrors with automatic dimming, headrests, padded headrests, head screens, and passenger detection system. 

Features such as emergency call systems, accident data recording systems, and alcohol ignition interlocks are also expected to drive market growth. The growing awareness of several consumers and government initiatives has accelerated the adoption of vehicle safety systems. For example, China and the European Commission have launched a New Car Assessment Program (NCAP) that improves vehicle safety standards, including automatic emergency braking (AEB) and lane change warning (LDW).

MARKET RESTRAINTS

The lack of awareness of the benefits of the vehicle safety system and the high costs associated with a few products may hamper the expansion of the automotive electronics market in APAC.

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

APAC Automotive Electronics Market Analysis By Vehicle Type

• Passenger Cars
• Commercial Vehicles

The passenger car segment held a prominent share, attributed to the rising population, urbanization, and usage in most Western countries. Nevertheless, in the anticipated years, owing to the adoption of ADAS and favourable government policies, the commercial vehicles segment will account for a noteworthy share.

APAC Automotive Electronics Market Analysis By Sales Channel

• Original Equipment Manufacturers (OEM)
• Aftermarket 

The sales through the OEM segment are high compared to the aftermarket in 2019, owing to the consumer need to improve the vehicle performance with the aid of new and advanced components, which can be purchased directly from famous makers.

APAC Automotive Electronics Market Analysis By Application

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

In 2019, the security system sector registered the largest market share. Also, the actions taken by regulatory committees to avoid accidents are foreseen to accelerate the growth of this segment in the future. Nevertheless, the ADAS and infotainment sectors will be the most lucrative divisions in the coming years.

COUNTRY ANALYSIS

• China
• India
• Japan
• Australia
• New Zealand
• South Korea
• South East Asia
• Rest of Asia-Pacific

Asian countries, especially Taiwan, Korea, Malaysia, and Thailand, have contributed significantly to the market growth due to the fast-growing electronic component manufacturing industry. Most product demands in the Asia Pacific are met by China and Japan. However, a limited number of manufacturers offer great investment opportunities for local suppliers to take advantage of local demand so that the rest of the region becomes an attractive place for investors.

KEY PLAYERS IN THE APAC AUTOMOTIVE ELECTRONICS MARKET

Sanyo Electric Co., Ltd., Yamaha Corporation, Philips N.V., Bosch, Johnson Controls, TRW Denso Corporation, Continental AG, Sony Corporation, Delphi Automotive PLC. These are the market players dominate the Asia Pacific automotive electronics market.

RECENT HAPPENINGS IN THE ASIA PACIFIC AUTOMOTIVE ELECTRONICS MARKET

• In May 2018, Magna International partnered with Renesas Electronics Corporation to accelerate the development and adoption of advanced ADAS, which is driving the market growth.
• In 2019, the Chinese government announced subsidies for consumers of electric vehicles, depending on the range of vehicles that will contribute to the thriving automotive market.
• In September 2018, the Minister of Road and Highway Transport of India announced that it would order the ADAS system for all cars in 2022 to strengthen road safety in India. To reduce road fatalities and reduce traffic congestion, ADAS must be placed on all types of vehicles.
• In October 2018: Broadcom, Inc. announced the expansion of its automotive Ethernet portfolio and developed innovative PHY, smart camera MCUs and security switches. The new product was developed to improve the solutions of connectivity in the vehicle, ADAS, infotainment and intelligent mobility of the company.
• In July 2019, the Government of India selected 11 cities across the country to introduce electric vehicles into the public transportation system creating opportunities for the automotive electronics market in the region under the FAME scheme (rapid adoption and manufacturing of hybrid vehicles and electrical).

MARKET RESEARCH METHODOLOGY

Secondary Research: The first phase of the research process is extensive secondary research and identification of the related intelligence. Secondary data is compiled from various sources. Extensive secondary research helps in generating hypotheses and identifying critical areas of interest that are investigated through primary research.

Primary Research: This entails conducting hundreds of primary interviews with industry participants and commentators in order to validate the data points obtained from secondary research and to fill the data gaps. A primary interview provides first-hand information on the market size, market trends, growth trends, competitive landscape, future outlook, etc. It also helps in deciding the scope and deliverables of the study in terms of the requirements of the market. Primary research involves e-mail interactions, telephonic interviews as well and face-to-face interviews for each market, category, segment, and sub-segment across geographies.

MARKET REPORT HIGHLIGHTS

• Evaluation of the current stage of the market and future implications of the market based on the detailed observation of recent key developments.
• Address the matter by better understanding the market size estimates through CAGR analysis to forecast the future market.
• Comprehensive segmentation of the market, a detailed evaluation of the market by further sub-segments.
• Address Market Drivers and restraints and provide insights for gaining market share.
• Porter’s Five Forces are used to analyze the factors responsible for the shaping of the industry as it is a result of a competitive environment.