Automotive Electronics Market Size | Growth & Innovation Trends

Q: The market is projected to reach USD 524.8 billion by 2031. What is the CAGR of the automotive electronics market during the forecast period?

The automotive electronics market is expected to grow at a CAGR of 8.4% during forecast period.

Q: What are the primary applications of automotive electronics?

Key applications include powertrain control, ADAS, infotainment, body electronics, and vehicle connectivity.

Q: How is electrification impacting the automotive electronics market?

Electrification is increasing the need for battery management systems, power electronics, and electronic safety modules.

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Code: MTA4887

Publication Date: Jul 2025

How big is the automotive electronics market?

According to 6Wresearch internal database and industry insights, the Global automotive electronics market was valued at approximately USD 296.3 billion in 2024 and is projected to reach USD 524.8 billion by 2031. The market is expected to grow at a CAGR of 8.4% during the forecast period.

Growth is being driven by the increasing electrification of vehicles, growing demand for advanced driver-assistance systems (ADAS), and the integration of infotainment, safety, and connectivity technologies.

Key Growth Factors of the Automotive Electronics Market

Rising adoption of ADAS, autonomous driving, and electric vehicles
Increased demand for in-vehicle infotainment and connectivity systems
Regulatory mandates for safety and emission control technologies
Growing use of ECUs and semiconductor components in modern vehicles
Rising consumer expectations for comfort, convenience, and smart features
Expansion of vehicle electrification driving power electronics demand

Automotive Electronics Market Trends

Automakers are shifting toward centralized electronic architectures. Demand for AI-integrated systems in EVs and AVs is growing. Over-the-air (OTA) update capability is becoming standard. The use of automotive-grade chips and sensors is surging. Consolidation of control units for infotainment, powertrain, and safety is gaining traction.

Emerging Developments in the Automotive Electronics Market

Development of zone-based architectures is simplifying wiring and improving performance. High-performance computing (HPC) platforms are being integrated into autonomous vehicles. Gallium nitride (GaN) and silicon carbide (SiC) are being used in high-efficiency power electronics. AI and machine learning are enabling adaptive cruise control, automatic parking, and predictive maintenance features.