Automotive Electronics Market Trends

Automotive Electronics Market Trends

• The automotive market is witnessing a dynamic shift towards the higher adoption of vehicles (EVs), especially in developing countries. Therefore, the nature of the market becomes more competitive from the supply side and demanding from consumer side, in terms of advanced features, such as advanced driver-assistance systems (ADAS), connected car solutions, battery management systems (BMS), lightweight materials and sensors for better efficiency etc.
   
• The adoption of sustainable practices is rising with the increase in strict involvement of government regulation and standards. Greenhouse gas emissions bring attention of the manufacturers for shifting towards the electronics solutions. For instance, the recent data from Climate TRACE in 2023, the road transport sector accounted for 74.8% of the total carbon dioxide (CO2) emissions. The world is moving towards smart and eco-friendly approaches which is leading to the adoption of new technologies in automotive electronics.
   
• Growing technology adoption by the manufacturers and users in the field of automobile market is a key market trend of automotive electronics market.  Many auto manufacturers are developing autonomous cars and driving features for their use in ride sharing, public transportation and personal needs.
   
• In November 2024, Marelli launched its Electronic Control Unit (ECU) which uses AI technology for vehicle and engine control in motorsport applications. The real time computation is established through the VEC_480 solution they provide which has 2.5 times computing performance as compared to its previous Vehicle Control Unit (VCU). The inter-processor bandwidth is increased to 10 times and there is also improvement in the RAM which provides greater reliability in vehicle operations.
   
• The evolving Advanced Driver Assistance System (ADAS) is acting as a catalyst in the transition from traditional mechanical system to the advanced automotive electronics system. Organizations are forming strategic collaboration to progress in personalized and connected vehicles. For instance, in January 2025, JLR and Tata Communications announced their partnership where JLR’s connected vehicle is enhanced with the Tata Communication move platform. The partnership aims towards gaining deeper insights through the monitoring of vehicle performance in real time.
   
• Businesses are adhering to standards set by the automotive industries which are critical aspects of avoiding any random or systematic failure in the system. For instance, any failure in ECU can lead to unforeseen behavior in the brakes. Reliability standards such as SN 29500 or IEC 62308 provide the basis for extracting the failure rate of such systems in automotive electronics.
   
• Safety regulations in the automobile industry are shaping the automotive electronics market and the norms are set in the regions to avoid any casualties. For example, the European Union (EU) mandated the installation of the advanced driver distraction warning system from mid-2024. This was done so that the system detects eye movement and warns the driver and helps prevent accidents.