Global Automotive E/E Architecture Market Size Likely to Reach at a CAGR of 8.4% By 2033

As per the current market research conducted by CMI Team, the global Automotive E/E Architecture Market size is expected to record a CAGR of 8.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 32.4 billion. By 2032, the valuation is anticipated to reach USD 76.9 billion.

Automotive E/E Architecture Market: Growth Factors and Dynamics

• Increasing Vehicle Electrification: The automotive industry is witnessing a significant shift towards electrification, with the rise of electric and hybrid vehicles. This transition is driving the demand for advanced Electronic/Electrical (E/E) architectures that can support the complex powertrain and battery management systems.

• Growing Connectivity and ADAS Features: The proliferation of connected vehicles and Advanced Driver Assistance Systems (ADAS) is fuelling the need for robust E/E architectures. These architectures facilitate seamless integration of sensors, cameras, and communication modules, enabling vehicles to offer features like lane-keeping assistance, adaptive cruise control, and enhanced infotainment systems.

• Software-Centric Approach: Modern vehicles increasingly rely on software-driven functions, from infotainment systems to vehicle diagnostics. This software-centric approach demands flexible and scalable E/E architectures that can accommodate over-the-air updates, software integration, and cybersecurity measures.

• Weight and Space Optimization: With a growing emphasis on fuel efficiency and range in electric vehicles, automakers are looking for E/E architectures that are lightweight and space efficient. This trend is driving the adoption of advanced miniaturized components and modular architectures.

• Industry Collaboration and Standardization: As the complexity of automotive E/E architectures increases, collaboration among automakers, suppliers, and technology providers becomes crucial. Efforts towards standardization and open-source platforms are gaining traction to streamline development, reduce costs, and ensure interoperability between various vehicle components.

• Safety and Redundancy Requirements: As vehicles become more technologically advanced, ensuring safety and reliability becomes paramount. E/E architectures must incorporate redundancy measures and fail-safe mechanisms to minimize the risk of system failures and enhance overall vehicle safety. This is particularly crucial in autonomous and electric vehicles, where any malfunctions can have severe consequences.

• Cost and Time-to-Market Pressures: Despite the growing demand for sophisticated E/E architectures, automakers face significant cost pressures and the need to expedite time-to-market. Balancing the development of cutting-edge technologies with cost-efficiency is a critical challenge for automotive companies. This drives the adoption of scalable and modular E/E architectures, enabling faster and more cost-effective vehicle development processes.

Automotive E/E Architecture Market: Partnership and Acquisitions

• Panasonic Corporation and Toyota Motor Corporation: In 2019, Panasonic and Toyota established a joint venture called Prime Planet Energy & Solutions, aiming to develop high-performance prismatic batteries for electric vehicles. This partnership aimed to enhance E/E architectures for electric mobility with improved battery technologies.

• Bosch and Microsoft: In 2018, Bosch and Microsoft partnered to develop a software platform that would enable vehicles to interact with smart homes. The collaboration aimed to integrate smart home capabilities into E/E architectures, allowing seamless communication between vehicles and home automation systems.

• Magna International Inc. Acquires Veoneer, Inc.: In July 2021, Magna acquired Veoneer, a leading supplier of automotive safety systems and components. This acquisition strengthened Magna’s position in the E/E architecture market, expanding its capabilities in ADAS and autonomous driving technologies.

• ZF Friedrichshafen AG Acquires WABCO Holdings Inc.: In 2020, ZF completed its acquisition of WABCO, a global supplier of braking control systems and technologies. This acquisition complemented ZF’s E/E architecture offerings by adding advanced safety and braking solutions to its portfolio.

Report Scope

Automotive E/E Architecture Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Automotive EE Architecture Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The COVID-19 pandemic disrupted global supply chains, affecting the availability of electronic components and materials essential for E/E architectures. Manufacturing delays and shortages led to production slowdowns and increased costs for automotive companies.

• Decreased Vehicle Sales: The pandemic’s economic impact resulted in a significant decline in automotive sales worldwide. With consumers postponing vehicle purchases, demand for E/E architectures and advanced features like connectivity and autonomous capabilities also witnessed a slowdown.

• Resumption of Production and Supply Chains: As the pandemic subsides and restrictions ease, automotive manufacturing facilities can resume full-scale production. This will help alleviate supply chain disruptions and increase the availability of electronic components for E/E architectures.

• Accelerated Electrification and Connectivity Trends: The automotive industry’s shift towards electric and connected vehicles is expected to rebound as economies recover. This will drive higher demand for advanced E/E architectures that support the intricate electronic systems required for electric powertrains and connected functionalities.

• Government Stimulus and Incentives: Many governments around the world introduced stimulus packages and incentives to revive their economies post-COVID-19. Some of these measures focused on promoting the adoption of electric vehicles and green technologies, which will drive investments in E/E architectures for electric mobility.

• Emphasis on Vehicle Digitization: The pandemic accelerated the need for digitization and contactless solutions in vehicles. Automotive companies are increasingly focusing on integrating advanced infotainment systems, touchless interfaces, and over-the-air updates in their vehicles, which will boost the demand for sophisticated E/E architectures.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Automotive EE Architecture Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.

List of the prominent players in the Automotive E/E Architecture Market:

• Robert Bosch GmbH
• Continental AG
• Aptiv PLC
• ZF Friedrichshafen AG
• DENSO Corporation
• Panasonic Corporation
• Lear Corporation
• Veoneer Inc.
• Magna International Inc.
• Harman International Industries Inc.
• Others

The Automotive E/E Architecture Market is segmented as follows:

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Propulsion

• IC-Engine
• Electric

By Component

• Hardware
• Software

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America