A recent report said that India’s automotive electronics
market is likely to cross 18 billion dollar by 2027 from 6 billion dollar in 2020 with a CAGR of 17 percent. Factors like rising income levels and increase in the preference of customers in vehicle digital experience
will triple the sales of automotive electronics by 2027. Counterpart Research Analyst Soumen Mandal said, “Rising concerns among people about the advanced safety and communication services, along with more embedded connectivity service offerings by automakers, will drive Automotive Electronics market in future”.
The Growth Drivers
Mainly the purpose of using automotive electronics in vehicles is to enhance the performance of its electronic parts which are there such as media player devices and parts for improving the overall feel and efficiency of the vehicle. The most common uses of automotive electronics are in airbags, electronic fuel injection, infotainment and electronic fuel injection which are responsible for improving the efficiency of the vehicles and enhances its performance.
The different components of vehicles which depend on electronics are radio, ignition, engine management, carputers, telematics and in-car entertainment systems. Without these components, one cannot imagine a vehicle. There are stringent rules and regulations of government like Bharat Stage-VI (BS-VI) and Corporate Average Fuel Efficiency II (CAFE II) which are also responsible for the rising electronic content in a vehicle.
The major factors which are driving the automotive electronics market are rapid demand for cutting edge infotainment system in the vehicles. As well as day by day increasing road accidents are growing concerns about safety and demands for active safety systems in vehicles.
In automobiles, there are immense opportunities for new players who can provide better fuel efficient vehicles with more entertainment devices. In fact, in the automotive sector, there is a sudden transition happening from hardware driven vehicles to software driven vehicles.