Global Automotive Electrical Products Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Automotive Electrical Products Market is expected to record a CAGR of 9% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 262.6 billion. By 2032, the valuation is anticipated to reach USD 468.1 billion

The Automotive Electrical Products market refers to the sector of the automotive industry that deals with the production, distribution, and sale of various electrical components and systems used in vehicles. These electrical products are integral to the functioning and performance of modern automobiles and are crucial for powering and controlling various vehicle functions.

Key components and systems within the Automotive Electrical Products market include:

• Batteries: Automotive batteries provide electrical power to start the engine, operate lights, accessories, and power electronic components. They are available in various types, including lead-acid, lithium-ion, and nickel-metal hydride.

• Starter Motors and Alternators: Starter motors are responsible for initiating the engine’s cranking, while alternators generate electrical power to charge the battery and supply electricity to the vehicle’s electrical systems.

• Wiring Harnesses: Wiring harnesses consist of a network of electrical wires, connectors, and terminals that route electricity throughout the vehicle, connecting various electrical components.

• Lighting Systems: Automotive lighting includes headlights, taillights, brake lights, turn signals, and interior lighting. These systems have evolved to include energy-efficient LED and HID (high-intensity discharge) technologies.

• Ignition Systems: Ignition systems play a crucial role in starting the engine and ensuring optimal combustion. Modern vehicles often use electronic ignition systems for improved performance and fuel efficiency.

• Electrical Sensors: Various sensors, such as oxygen sensors, temperature sensors, and pressure sensors, monitor engine performance, emissions, and overall vehicle condition.

Automotive Electrical Products Market – Significant Growth Factors

• Vehicle Electrification: The increasing adoption of electric and hybrid vehicles has spurred growth in the automotive electrical products market. These vehicles rely heavily on advanced electrical components such as batteries, electric motors, inverters, and power electronics.

• Advanced Driver-Assistance Systems (ADAS): The integration of ADAS features, including adaptive cruise control, lane-keeping assist, and automated emergency braking, has necessitated the use of sophisticated sensors, ECUs, and wiring harnesses, boosting demand for automotive electrical products.

• Consumer Demand for Connectivity: Modern consumers expect connectivity features in their vehicles, leading to the inclusion of advanced infotainment systems, GPS navigation, smartphone integration, and wireless communication technologies in cars. These features rely on complex electrical systems.

• Safety and Emissions Regulations: Stringent safety and emissions regulations worldwide have mandated the use of advanced electrical components to meet compliance requirements. This includes systems for airbags, ABS, stability control, and emission control systems.

• Rise of Electric and Autonomous Vehicles: The growth of electric and autonomous vehicles has led to a surge in demand for electric powertrains, self-driving sensors, and sophisticated electronic control systems, driving growth in the automotive electrical products market.

• Energy Efficiency and Fuel Economy: Automotive manufacturers are under pressure to improve fuel efficiency and reduce emissions. Advanced electrical systems, such as start-stop technology and regenerative braking, play a crucial role in achieving these goals.

• Increasing Vehicle Production: The global automotive industry has been expanding, with rising vehicle production in emerging markets. This increased production volume has driven demand for electrical components and systems.

• Technological Advancements: Ongoing advancements in electrical component technology, including more efficient batteries, lightweight wiring materials, and improved sensor technology, have allowed for the development of more sophisticated and capable electrical products.

• Growing Awareness of Environmental Impact: Greater awareness of environmental concerns has prompted both consumers and automakers to prioritize cleaner and more efficient technologies. Electric and hybrid vehicles, made possible by advanced electrical components, are seen as more environmentally friendly alternatives.

• Rising Consumer Expectations: Consumers now expect their vehicles to offer a wide range of features and conveniences, from advanced entertainment systems to enhanced safety features. This drives automakers to incorporate more electrical products into their vehicles.

• Infrastructure Development: As electric vehicle adoption increases, governments and private companies are investing in charging infrastructure. This infrastructure growth requires the development and installation of electrical components and systems to support electric vehicle charging.
• Global Urbanization: Urbanization trends have led to increased demand for efficient and sustainable transportation solutions, including electric public transit and shared mobility services, which rely heavily on automotive electrical products.

Automotive Electrical Products Market – Mergers and Acquisitions

• Aptiv PLC (formerly Delphi Automotive) and HellermannTyton Group: In 2015, Aptiv PLC (formerly Delphi Automotive) acquired HellermannTyton Group, a leading manufacturer of cable management solutions. This acquisition expanded Aptiv’s capabilities in electrical and electronic architecture, helping them provide comprehensive solutions to the automotive industry.

• Molex and Laird: In 2019, Molex, a global electronics solutions provider, acquired Laird, a leading supplier of automotive connectivity solutions. This acquisition strengthened Molex’s portfolio of connected vehicle solutions, particularly in areas like telematics and in-car connectivity.

• BorgWarner and Delphi Technologies: In 2020, BorgWarner completed its acquisition of Delphi Technologies, a major player in automotive power electronics and propulsion systems. This merger created a leading global provider of clean and efficient vehicle propulsion solutions.

• ZF Friedrichshafen AG and WABCO: In 2020, ZF Friedrichshafen AG, a global technology company specializing in driveline and chassis technology, acquired WABCO Holdings Inc., a leading supplier of braking control systems and other advanced technologies for commercial vehicles. This acquisition strengthened ZF’s position in the commercial vehicle segment.

• Valeo and FTE Automotive: In 2017, Valeo, a major automotive supplier, acquired FTE Automotive, a leading manufacturer of hydraulic actuation systems and other automotive technologies. This acquisition expanded Valeo’s product offerings in the field of electrification and automated driving.

• Siemens and Mentor Graphics: Although not exclusive to the automotive sector, Siemens’ acquisition of Mentor Graphics in 2017 had significant implications for automotive electrical and electronic systems. Mentor Graphics provides software tools for designing automotive electrical and electronic systems, aiding in the development of advanced vehicle technologies.

• TE Connectivity and Creganna Medical Group: TE Connectivity, a global leader in connectivity and sensor solutions, acquired Creganna Medical Group in 2016. While Creganna primarily focuses on medical technology, this acquisition brought expertise in precision manufacturing and advanced materials, which can be applied to automotive electrical components.

• Continental AG and Elektrobit Automotive: Continental AG, a prominent automotive technology company, acquired Elektrobit Automotive in 2015. This acquisition bolstered Continental’s capabilities in automotive software development, including embedded systems, human-machine interfaces, and connectivity solutions.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Automotive Electrical Products Market – Significant Threats

• Supply Chain Disruptions: Disruptions in the global supply chain, such as those caused by natural disasters, trade disputes, or the COVID-19 pandemic, can lead to shortages of critical electronic components and disrupt production.

• Competition from Non-Automotive Sectors: As automotive technologies converge with those in other industries, automotive electrical product manufacturers face competition from non-automotive companies entering the market, such as tech giants and electronics manufacturers.

• Rapid Technological Advancements: The rapid pace of technological advancements in the automotive industry requires constant investment in research and development to stay competitive. Failure to keep up with emerging technologies can lead to obsolescence.

• Regulatory Changes: Evolving regulations related to emissions, safety, and cybersecurity can require significant changes to electrical systems, leading to compliance challenges and increased development costs.

• Cybersecurity Threats: Connected vehicles are susceptible to cybersecurity threats, including hacking and data breaches. Ensuring the security of electrical systems and data is a growing concern.

• Cost Pressures: The demand for advanced electrical features can drive up production costs. Balancing the integration of new technologies with cost considerations is a challenge, especially for manufacturers of mass-market vehicles.

• Warranty and Recall Costs: Electrical component failures can result in costly warranty claims and recalls, damaging a company’s reputation and financial stability.

• Counterfeit Parts: The automotive industry faces the threat of counterfeit or substandard electrical components, which can compromise vehicle safety and performance.

• Environmental Regulations: Stricter environmental regulations, including those related to the disposal of electronic waste (e-waste), require manufacturers to consider the environmental impact of their products throughout their lifecycle.

• Short Product Lifecycles: Rapid product obsolescence due to technological advancements can result in short product lifecycles and the need for continuous product innovation.

• Geopolitical Instability: Political conflicts and trade disputes between nations can disrupt the supply chain and impact the availability of critical materials and components.

• Economic Downturns: Economic recessions and financial crises can lead to reduced consumer spending on vehicles, affecting the demand for automotive electrical products.

Report Scope

Category-Wise Insights

Based on Component:

In 2022, the segment related to current carrying devices held the largest share of revenue, accounting for approximately 42% of the market. Current carrying devices encompass various products, including electronic switches, fuses, connectors, and wiring harnesses.

The prominent market share attributed to current-carrying devices within the component category can be attributed to several factors. This strong position is primarily a result of the substantial investment associated with numerous electronic components utilized in vehicles. These components encompass electronic switches, fuses, connectors, and wiring harnesses.

The automotive industry’s increasing emphasis on connectivity, convenience, and safety features in both passenger vehicles and commercial fleets has further propelled the growth of this segment. In essence, the demand for advanced electrical components and systems within vehicles has significantly bolstered the prevalence of current-carrying devices in the automotive electrical products market.

Based on Application:

In 2022, the safety systems segment secured the largest share of revenue, approximately 29% of the total market. Safety systems encompass a diverse range of components, including airbags, keyless entry systems, electric power steering, electronic brake distribution, tire pressure monitoring systems, electronic stability control, suspension control, and more. This dominant position of the safety systems segment within the market can be attributed to several factors.

Notably, there is a growing awareness among consumers regarding technological advancements that impact safety equipment in automobiles. This heightened awareness has emerged as a significant driving force behind the growth of the safety systems market. In essence, the increasing emphasis on vehicle safety and the integration of advanced safety technologies have propelled the prominence of safety systems within the automotive electrical products market.

Automotive Electrical Products Market – Regional Analysis

North America:

• United States: North America, particularly the United States, is a major hub for automotive manufacturing and innovation. The market here is driven by a strong focus on safety and connectivity features. Demand for electric and hybrid vehicles is also growing.

• Canada: The Canadian market shares similarities with the United States, with a focus on safety and advanced electrical systems. Electric vehicle adoption is on the rise.

• Mexico: Mexico is an emerging player in the automotive sector, with significant manufacturing operations. The market here is driven by cost-effective production and export to North American and global markets.

Europe:

• Western Europe: Western European countries like Germany, France, and the UK are at the forefront of automotive technology and electrification. Strict emissions regulations are driving the adoption of electric vehicles and advanced electrical components.

• Eastern Europe: Eastern European countries are increasingly becoming manufacturing hubs, attracting investments from global automotive companies. The market here is characterized by lower labor costs.

Asia-Pacific:

• China: China is the world’s largest automotive market, with a strong focus on electric vehicles and smart connectivity. The government’s push for new energy vehicles (NEVs) has propelled the market for automotive electrical products.

• Japan: Japan is known for its automotive technology innovation. The market here emphasizes safety and efficiency.

• South Korea: South Korea’s automotive industry is known for quality and innovation, particularly in electronics and electrical components.

• India: India’s automotive market is growing, with a focus on cost-effective vehicles. There is increasing demand for affordable electric vehicles and connectivity features.

• Southeast Asia: Countries like Thailand and Vietnam are emerging as manufacturing hubs. The market here is influenced by the preferences of both domestic and export markets.

South America:

• Brazil: Brazil is the largest automotive market in South America. The market here is influenced by consumer demand for cost-effective vehicles and safety features.

• Argentina: Argentina has a growing automotive industry, with a focus on regional production and exports.

List of the prominent players in the Automotive Electrical Products Market:

• Continental AG
• DENSO Corporation
• Hella GmbH & Co. Kgaa
• Infineon Technologies AG
• Robert Bosch GmbH
• Valeo Inc.
• ZF Friedrichshafen AG
• Hitachi Automotive Systems Ltd.
• Visteon Corporation
• Xilinx Inc.
• Others

The Automotive Electrical Products Market is segmented as follows:

By Component

• Electronic Control Unit
• Sensors
• Current Carrying Devices
• Others

By Application

• ADAS
• Infotainment
• Body Electronics
• Safety Systems
• Powertrain Electronics

By Sales Channel

• OEM
• Aftermarket

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• 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