Automotive Electronics Market Outlook:
Automotive Electronics Market size was valued at USD 295.51 Billion in 2025 and is set to exceed USD 597.82 Billion by 2035, registering over 7.3% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of automotive electronics is estimated at USD 314.93 Billion.
The growth of the market can be attributed to the increasing demand for automotive electronics systems, which are effectively contributing to enhanced vehicle safety worldwide. For instance, it is projected that electronic systems are anticipated to account for almost 50% of the total price of a new car by 2030. Besides this, the significantly rising adoption of electric vehicles and hybrid electric vehicles, along with an upsurge in the demand for infotainment features, is also propelling the growth of the global automotive electronics over the projected timeframe.
In addition to these, factors that are believed to fuel the market growth of automotive electronics include the rise in the demand for autonomous vehicles, proliferating automotive production, and the surging integration of highly advanced safety systems such as emergency call systems, automatic emergency braking, and lane departure warning systems to lower the road crashes. Electronic parts that are used in automobiles are utilized to be controlled digitally for most of the car’s operations, along with an embedded system that is used in the telematics, music system, radio, anti-lock braking system, parking ability, and safety airbags. With the recent advancements in automotive electronic control units as well as surging investment in research and development, the demand for automotive electronics is on the rise among automobile users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive electronics market during the forecast period. For instance, the European Union (EU) invested of more than USD 58 billion in automotive research and development, in 2020. Additionally, the growing replacement of mechanical devices by electrical devices is also predicted to present the potential for market expansion over the projected period.
