Mexico automotive electronics market is growing, supported by increasing vehicle ownership and demand for digital and safety features. The market includes components for infotainment, navigation, and driver assistance, appealing to tech-savvy consumers. The Mexico government promotes digitalization, encouraging local and foreign companies to invest in automotive electronics. The market’s growth aligns with Mexico’s automotive ambitions, as electronics enhance vehicle functionality and safety. As vehicle standards rise, automotive electronics are set to play a crucial role in Mexico’s developing automotive industry, improving the driving experience and supporting the country’s goals for technological advancement.

In 2023, the size of the automotive electronics market was estimated at USD 235.4 billion. From USD 252.70 billion in 2024 to USD 415.16 billion in 2030, the Automotive Electronics market industry is anticipated to expand at a compound annual growth rate (CAGR) of 7.35 percent (2024 - 2032).

Market Research Future Insights :

Autonomous driving, connected vehicles, electrification of the powertrain, and shared mobility (ACES) are developments in the automotive sector that build on one another. These are all having an effect on and destabilising the entire automobile value chain. They also provide significant contributions to the electrical and electronic (E/E) and automotive software markets, which are expected to grow from $238 billion to $469 billion between 2020 and 2030.

Throughout the same time period, it is expected that the entire automotive industry will grow at a compound rate of 3%, exceeding the growth of the software and E/E sectors by a wide margin. Because of this, the majority of automobile companies and their executives are now focused on software and electronics.

The car industry spends a lot of money on R&D to produce high-performance electronics and energy storage technology at a competitive price. Manufacturers also depend more on electronics to guarantee excellent safety. By 2020, electronic components would account for roughly 35% of the price of an automobile. Nonetheless, it is estimated that by 2030, automotive electronic components would account for almost 50% of the cost of a car due to technological developments.

Regional Analysis :

The analysis offers market information for North America, Europe, Asia-Pacific, and the rest of the world, organised by region. The market for North American automotive electronics, which had a value of USD 103.81 billion in 2021, is anticipated to increase at a substantial CAGR throughout the research period. The car industry spends a lot of money on R&D to produce high-performance electronics and energy storage technology at a competitive price. Manufacturers also depend more on electronics to guarantee excellent safety. The United States, Canada, Germany, France, the United Kingdom, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil are additional significant nations covered in the market analysis.

The region with the largest growth in the automotive electronics market was Asia Pacific. Countries like Taiwan, South Korea, Malaysia, and Thailand have significantly contributed to the rise of the automotive electronics industry due to their robust electronic component manufacturing activities. The majority of the automotive electronics required in the Asia-Pacific area are supplied by China and Japan. The rest of Asia Pacific is a great place to invest because of the small number of automotive electronics manufacturers, which offers fantastic business opportunities for local suppliers to capitalise on the domestic demand. Moreover, the region's fastest-growing market for automotive electronics was India, while the Chinese market had the biggest market share.

The region with the biggest growth was the European Automotive Electronics market. Europe is also experiencing an exponential market boom as a result of the growing concern for the safety and security of people and automobiles. It is helpful that this region is home to reputable automakers like VW, Skoda, Audi, BMW, and Daimler, among others. Also, the European Union has put in place a number of regulations to lower traffic accidents and require safety features in all cars, which has contributed to the ADAS industry's success in this Region. These factors collectively are driving the market for automotive electronics to grow. Also, the UK Automotive Electronics market had the quickest rate of growth in the European Region, while the Germany Automotive Electronics market had the greatest market share.

Market Segmentation : 

The Automotive Electronics Market is divided into several categories based on type: ADAS, Body Electronics, Entertainment, Powertrain, Safety Systems, and Others. The safety systems industry had the largest market share in 2021, at over 29%. Some of the components that make up safety systems include airbags, tyre pressure monitoring systems, keyless entry, electronic brake distribution, electronic stability control, electric power steering, and suspension control. The safety systems market is expected to experience significant growth due to rising consumer awareness of technological developments affecting automotive safety equipment. As a result, these factors will fuel the expansion of the automotive electronics market.

OEM and aftermarket are two segments of the automotive electronics market based on sales. With a share of almost 68% in 2021, the OEM category had the largest market share. The OEM segment led the automotive electronics market in 2020 as a result of the increased durability and shelf life of electronic components. Electronic components are a necessary aspect of autos, hence people prefer to buy them from OEMs to acquire genuine parts. The rise in design complexity of these electronic components is also expected to result in a decreased revenue share for aftermarket electronic components over the course of the predicted period.

The PV, LCV, HCV, EV, and 2-wheeler categories are included in the Automotive Electronics Market data based on application. The passenger vehicle industry now holds the largest market share for automotive electronics as a result of rising passenger vehicle sales and production on a global scale. Because automakers quickly adopted cutting-edge technologies like infotainment and driver assistance systems, the sector is growing. Furthermore, market growth is being aided by the government's stringent restrictions regarding fuel efficiency and the safety of both drivers and passengers. Electric vehicles (EVs) are experiencing a rapid market growth. Due to the increasing fuel pollution and carbon footprints, automakers are being compelled to produce more electric vehicles instead of conventional gasoline automobiles. It is projected that the market for this element would grow quickly. 

Key Players :

The global Automotive Electronics market major players such as Robert Bosch GmbH (Germany), OMRON Corporation (Japan), Infineon Technologies AG (Germany), HGM Automotive Electronics (US), Hitachi Ltd. (Japan), Delta Electronics Inc. (Taiwan), Atotech (Germany), ZF Friedrichshafen AG (US), Denso Corporation (Japan), Koninklijke Philips N.V. (Netherlands), and others are working on expanding the market demand by investing in research and development activities.

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