Automotive Electronics Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (ECU/DCU, Sensors, Power Electronics, and Others), By Application (Body, Chassis, Powertrain, Infotainment, and ADAS/AD), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion (ICE and Electric/Hybrid), and Region Forecast 2020-2031

Automotive Electronics Market size was valued at US$ 172,500 million in 2024 and is expected to reach US$ 268,400 million by 2031, growing at a significant CAGR of 4.9% from 2025-2031. Moreover, the U.S. Automotive Electronics Market is projected to grow significantly, reaching an estimated value of US$ 76,800 million by 2031. The market refers to the segment of the automotive industry that focuses on electronic systems used in vehicles to enhance safety, comfort, efficiency, and performance. These systems include advanced driver-assistance systems (ADAS), infotainment, powertrain control, electronic control units (ECUs), sensors, and battery management systems in electric vehicles.

With the shift towards connected, autonomous, and electric mobility, automotive electronics have become a core driver of innovation in the sector. Increasing consumer demand for smart features, regulatory mandates for safety, and the global push for electrification are propelling investment and R&D in automotive electronics, making it one of the fastest-evolving domains in the automotive value chain.

Facts & Figures

• More than 40% of the price of making an automobile is now comprised of electronics, versus when mechanical components ruled the auto bill-of-materials a decade ago
• The availability of over-the-air (OTA) software updating is ubiquitous on new cars from all the major OEMs today, a huge milestone on the journey to software-defined automotive ecosystems on top of scalable electronic platforms
• ADAS and infotainment are where most of the R&D spend on car electronics is happening, fueled by changing consumers' requirements for connected, safe, and personalized driving.
• Chipsets in automobiles are being rearchitected to perform AI workloads at the edge such that autonomous and semi-autonomous driving becomes feasible with real-time decision-making without necessarily requiring full connectivity with the cloud

Key Developments:

• In July 2025, Dixon Technologies acquires term sheet to purchase 51% of Q Tech India, Dixon's foray into high-precision microelectronic production is a strategic foray into the vehicle electronics supply chain
• In June 2025, Compal completes Phase One of new auto electronics factory in Poland, the facility is dedicated to ECU manufacturing for domestic European OEMs, representing further local manufacturing presence
• In April 2025, Foxconn (Sony-Honda joint venture) accelerates EV electronics production, Foxconn, using its Afeala EV platform, is including advanced sensor and infotainment systems in North America-bound vehicles

Automotive Electronics Market Segmentation:

Based on the type:

• ECU/DCU
• Sensor
• Power Electronics
• Others

Message Electronic Control Units (ECUs) and Domain Control Units (DCUs) are the nervous system of modern automobiles, managing everything from engine performance to entertainment and driver aid functions. As cars continue to get more centralized in computing power, the trend now shifts away from distributed ECUs towards high-performance DCUs that bundle multiple functions into fewer, more intelligent units. This not only minimizes wiring expense and complexity but also facilitates real-time diagnostics and over-the-air updating. With more software-defined cars and advanced features such as adaptive cruise control and driver-assistance systems being utilized, there is increased demand for high-performance, scalable, and secure control architectures. ECUs/DCUs are also becoming a strategic differentiator in autonomous-ready cars and EVs.

Based on vehicle:

• Passenger cars
• Commercial Vehicles

Passenger cars are the largest consumer of automotive electronics because demand for connected products, in-car experiences, and advanced safety solutions is increasing. Customers of automobiles now demand digital-first products in the form of interactive instrument clusters, smartphone-integrated audio systems, semi-autonomous cruise, and traffic assist. Electronics are now a key differentiator at model choice, particularly in the premium and mid-range segments. The transition to personal mobility, and growing EV penetration, is compelling the OEMs to load up passenger cars with smart sensors, high-speed processors, and cloud connectivity. Passenger cars are the technology pioneers, ahead of such technologies being used in commercial fleets, and thus this segment is a top revenue generator for Tier-1 electronic vendors as well as chipmakers.

Based on the propulsion:

• ICE
• Electric
• Hybrid

Electric and hybrids are electronics-based in their operation, calling for sophisticated power control modules, battery management system (BMS), regenerative braking loops, and thermal management systems. Electronics are secondary support systems on ICE vehicles but primary to range extension and vehicle function for EVs. EV electronics are driven by the requirement for performance and sophistication, leading to the demand for high-reliability, high-efficiency electronics with safety, energy efficiency, and fast-charging capability. With the world moving towards executing internal combustion engine phase-outs globally, demand for EV-centric electronics is expanding exponentially. The OEMs are counting on vertically integrated electronic platforms with the need to maintain costs and IP internally, while the suppliers are concentrating on developing high-voltage, compact units optimized for next-gen EV architecture.

Based on the application:

• Body
• Chassis
• Powertrain
• Infotainment
• ADA/AD

Advanced Driving Assistance Systems (ADAS) and Automated Driving (AD) are today leading uses of car electronics, both as safety and consumer technology. Lane-keep assist, adaptive braking, and blind spot monitor all sit on top of a very interconnected system of radar, lidar, ultrasonic sensors, and AI-processing. Growing global regulatory demands, NCAP scores and Vision Zero roadway safety targets, are driving ADAS adoption even on mid-tier vehicles. Car electronics are no longer just passive regulators; they are intelligent systems with the ability to sense, process, and respond in real-time. ADAS/AD is not only a growth story but also a technology battle among rival OEMs as they compete for marketplace share.