Global Automotive Electronic & Electric Equipment Industry
The global automotive electronic and electric equipment market encompasses diverse equipment produced for automotive end-users. Equipment manufactured by the automotive electronic and electric equipment industry serves several uses, including safety, entertainment and information, engine control, passenger comfort, driver assistance, and transmission systems.
Technology development is shaping the industry, boosting electronics and electric equipment performance to improve efficiency and introduce a higher degree of innovation.
Key Market Segments
- Consumers are eager to take advantage of in-car entertainment (ICE), and Markets and Markets estimates the global ICE industry will record close 30% growth in 2012, falling slightly from 2011. Overall, the ICE market is forecast to witness 12% yearly growth through 2016. Leading players currently operating in the global ICE System market include Japan’s Denso, Deplhi, Alpine, JVC-Kenwood and Pioneer; Germany’s Bosch; and Harman International in the US. Leading navigation system and service providers include Garmin in the US and TomTom in the Netherlands. Prominent software developers include India’s KPIT, Russia’s Luxoft, and Nuance and Intel in the US.
- The world automotive semiconductor industry is expected to exceed 7% yearly growth between 2010 and 2014, according to TechNavio. Market growth will be fuelled by the introduction of lighter automotive design. The automotive design platform concept is also being taken up in the world automotive semiconductor market, though high-quality assurance standards may prove an obstacle to market growth. Leading vendors currently operating in this industry include Freescale Semiconductor, Reneseas Electronics, STMicroelectronics and Infineon Technologies.
- TechNavio predicts the world lane departure warning system industry will record yearly growth in excess of 40% over the four-year period ending 2015. Market expansion will be driven by customer awareness concerning vehicle safety. The world lane departure warning system market is increasingly integrating high-tech LDW systems for low-cost cars. The expense of LDW systems may prove an obstacle to market growth. Prominent vendors currently present in the market include Denso, Delphi, Toyota, Aisin, Audiovox, Fiat, Ford, Mercedes-Benz, Robert Bosch, Audi, Peugeot Citroën, Continental, Nissan, Hyundai, Bayerische Motoren Werke (BMW) and General Motors.
Regional Market Share
- Beidou, a new navigation system produced in China and also called COMPASS, is currently emerging in the global satellite navigation market. Research from Netscribes predicts it will be difficult for other navigation systems developed in the US, the EU and Russia to compete with Beidou in the Chinese market. For the moment, this navigation system is in its initial phase but development continues on the back of state investment. Though GPS satellite navigation systems currently account for 95% of China’s satellite navigation market, COMPASS is set to encroach on this market share.
- China’s tire pressure monitoring system (TPMS) market volume was less than 2 million units in 2011, with a TPMS installation rate of 8%. A slow rate of growth saw several companies leave the market, though others entered the market, and China now has close to 200 TPMS manufacturers. The only mass-production players are Kysonix, Top Sun, Sate Auto and Shanghai Topsystem. Though the introduction of TPMS industry standards benefited TPMS manufacturers in China, the country’s controls are tighter than international standards. The market is set to witness strong growth as China introduces a TPMS plan, requiring that all vehicles have TPMS installed by 2017.
Market Outlook
Manufacturers operating in the global automotive electronic and electric equipment industry will continue to focus on integrating technology to develop higher-performance products. As the range and number of electronic applications used in vehicles grows, industry production levels will rise along with product innovation to meet increasing demand.
The automotive electronics industry will also benefit from recovery in the automotive industry, with economic recovery leading to higher levels of income and many households purchasing new cars or investing in existing vehicles.
The automotive-related microelectronics market in particular is expected to witness strong growth over the coming years. Expansion will be driven by advances in the power train solutions market, and the rising popularity of hybrid vehicles and related technologies. State regulations will help spur development of safety technologies such as occupant protection.
Leading Industry Associations
- Specialty Equipment Market Association www.sema.org
- Motor and Equipment Manufacturers’ Association www.mema.org
- European Electronic Component Manufacturers’ Association www.eeca.eu
