A Market on the Move
The Expanding Horizon of Automotive Electronics

The automotive electronics market has become a cornerstone of the overall industry, with its size reaching a noteworthy USD 239.03 billion in 2022. As technology continues to advance, this market is expected to soar to a staggering USD 386.24 billion by 2030, flourishing at a Compound Annual Growth Rate (CAGR) of 5.8% during the forecast period. [1]

A significant driving force behind the market expansion is the global demand for electric vehicles (EVs), fueled by environmental concerns, government incentives for clean energy, and breakthroughs in battery technology. Last year marked a significant milestone in the electric vehicle (EV) market, with sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) surging to over 10 million units, a 55% increase compared to 2021. From 2017 to 2022, EV sales jumped from around 1 million to more than 10 million, illustrating the exponential nature of EV sales growth in just five years. [2] The complexity and sophistication required in the electronic systems of EVs, such as battery management, motor control, and charging infrastructure, are central to this growing segment.

Safety Requirements
Safety remains a top concern in the automotive industry, with consumers and regulators pushing for advanced safety technologies. Automotive electronics are indispensable in deploying safety technologies for advanced braking systems, airbags, Electronic Stability Control (ESC), collision avoidance systems, and advanced driver-assistance systems (ADAS). [3] The IATF 16949 certification remains a critical standard for companies in the industry, emphasizing safety, superior quality, and traceability. This certification ensures that electronic components used in vehicles not only meet rigorous safety standards but also adhere to the highest quality benchmarks, with a strong focus on the traceability of components to enhance accountability and reliability in the embedded safety systems.

Electronic Control Unit/Data Control Unit (ECU/DCU)
This market segments into various categories, with the Electronic Control Unit/Data Control Unit (ECU/DCU) segment taking the lead in 2022. SkyQuest projects the automotive ECU market to reach USD $140.82 billion by 2030, propelled by a 5.10% CAGR [4]. Some of the driving forces behind this project growth include technologies like ADAS that require very complex sophistication and connectivity to function correctly and reliably. [5]

Recent developments in the industry underscore its dynamic nature:

• In May 2023, Hella commenced the series production of steering sensors for steer-by-wire systems.
• Valeo SA introduced a cutting-edge ECU platform for ADAS,
• while Bosch acquired Seeo Inc back in 2015 to bolster its position in advanced battery technology.

These strategic moves highlight the top player’s commitment to innovation and enhanced vehicle safety. The ADAS/AD segment is expected to see rapid growth due to stringent global safety regulations. Volvo's unveiling of the latest ADAS and safety features for its EX30 SUV in May 2023 is one specific example.
Automotive electronics are increasingly merging with consumer electronics, a trend showcased at CES 2024 in Las Vegas with notable unveilings like: BMW Advanced Personal Assistant, Hyundai Mobis MOBION, and Intrepid Control Systems neoVI CONNECT.

Without a doubt, major EMS and OEM players — including industry giants like Robert Bosch GmbH, ZF Friedrichshafen AG, Aptiv PLC, and Lear Corporation [6] —are leading the charge in the automotive sector. Many of these stakeholders have adopted software solutions like the Cogiscan TTC Platform and iTAC.MOM.Suite to not only meet the changing demands of the market, but to also continuously optimize and control their manufacturing processes.
Some of these key players are even taking their commitments a step further by establishing their own rigorous standards that complement the IATF 16949 certification, underscoring a dedication to quality and safety. In an industry poised for significant expansion, it is crucial to leverage a scalable software platform that is designed to navigate and balance the complexities of this ever-changing landscape.

David & Goliath
This market is also supported by mid-sized EMS companies that assemble products for the downstream automotive suppliers. For example, Canadian based August Electronics & Dynamic Source Manufacturing both offer automotive electronics manufacturing solutions to meet the current and emerging trends in specific to this industry.

In conclusion, the global automotive electronics market is on a trajectory of growth and transformation, driven by technological advancements, consumer expectations, and environmental considerations. As the industry continues to evolve, both established giants and innovative newcomers are shaping a future where vehicles are safer, more efficient, and more interconnected than ever before.