Automotive Electronic and Electrical Architecture Market Analysis

In 2023, the global automotive electronic and electrical architecture market size was valued at $75.2 billion, with a projected compound annual growth rate (CAGR) of 8.5% from 2024 to 2032. A key driver of market growth is the increasing demand for electric vehicles (EVs). As the global automotive industry shifts toward electrification to reduce emissions and reliance on fossil fuels, EVs are gaining popularity. This trend has accelerated the demand for more complex and efficient electrical and electronic architectures.

Electric vehicles require advanced power management systems to control battery packs, electric motors, inverters, and other high-voltage components. This necessitates robust E/E architectures to manage the complex power distribution and communication between components.

For example, in January 2024, Bosch showcased its move toward software-defined vehicles by integrating infotainment and driver assistance functions into a single SoC (System on Chip). This transition is part of the broader trend toward centralized vehicle electronics, reducing the number of individual control units. Bosch’s innovative cockpit and ADAS integration platform combines autonomous driving features such as lane detection and voice assistance. Bosch's multi-SoC approach is a key advantage, offering flexibility and over-the-air updates to enable a personalized driving experience.

A major challenge in the automotive E/E architecture market is the increasing concern over cybersecurity risks. As cars become more connected and reliant on software, they are more vulnerable to hacking and cyber-attacks. Protecting the massive amount of data transmitted across various vehicle systems, external networks, and cloud platforms is a complex task. Manufacturers must invest in robust cybersecurity solutions to protect critical systems such as autonomous driving and infotainment. The growing demand for stringent security measures adds to both the cost and complexity, posing a significant challenge for automotive manufacturers and suppliers.

According to vehicle type, the market is divided into passenger cars and commercial vehicles. In 2023, the passenger car segment accounted for over 75% of the market share and is expected to exceed $100 billion by 2032. Passenger cars dominate the automotive E/E architecture market due to their large-scale production and higher adoption rates of advanced technologies such as ADAS, infotainment systems, and connectivity.

Consumers’ increasing demands for safety, comfort, and convenience are driving the integration of complex electronic and electrical architectures in these vehicles. Additionally, the shift to electric vehicles (primarily passenger cars) further boosts the demand for advanced electronic devices and centralized vehicle control systems. Automotive manufacturers are highly focused on passenger cars to meet regulatory standards and consumer expectations, making this segment a key driver of market growth.

By propulsion type, the automotive E/E architecture market is split into internal combustion engine (ICE) vehicles and electric vehicles (EVs). The ICE segment held more than 80% of the market share in 2023, but the growth rate of electric vehicles is higher. Several key factors contribute to the rapid growth of the EV sector. First, EVs require more advanced and integrated electronic systems to manage their complex powertrains, battery management, and energy distribution, driving the demand for complex E/E architectures.

Second, the global push for sustainability and emission reduction has accelerated the shift to electric vehicles, with governments providing incentives and stricter regulations for traditional internal combustion engines. Furthermore, electric vehicles heavily rely on software-defined systems for real-time monitoring, wireless (OTA) updates, and autonomous driving, which requires advanced E/E infrastructure. The combination of technological and regulatory factors is driving rapid growth in the electric vehicle market.

In 2023, China’s automotive electronic and electrical architecture market accounted for 60% of the revenue share, and it is expected to exceed $30 billion by 2032. China is the largest automotive production hub in the world, manufacturing a significant portion of global vehicles, including electric vehicles (EVs) that rely on advanced electronic and electrical systems. Moreover, China benefits from strong government support, with policies, subsidies, and incentives aimed at promoting the growth of electric vehicles and automotive innovation.

Driven by growing consumer demand for high-tech vehicles, Chinese automakers are also rapidly adopting advanced driver assistance systems (ADAS), connectivity features, and centralized computing systems. Additionally, China’s strong position in semiconductor manufacturing and its focus on smart mobility further solidify its market leadership.

The North American automotive electronic and electrical architecture market is driven by strong demand for electric vehicles (EVs) and autonomous driving technologies in the region. The United States and Canada are key players, with major automotive manufacturers and tech companies investing heavily in ADAS and connected vehicle solutions. Regulatory standards for vehicle safety, emissions, and cybersecurity are also driving automakers to adopt more complex electronic and electrical architectures.

The ongoing trend of automotive electrification and government support for green technologies further propels market growth. Additionally, North America's well-established technological infrastructure supports the integration of cutting-edge automotive electronics.

Europe’s automotive electronic and electrical architecture market is characterized by a strong focus on the sustainability and innovation of automotive technologies. Driven by stringent emissions regulations and ambitious carbon footprint reduction goals, European countries are leading the adoption of electric vehicles (EVs).

Major automakers in the region are increasingly integrating advanced driver assistance systems (ADAS) and connected vehicle technologies into their vehicles to enhance safety and user experience. The market is also supported by significant investments in the development of next-generation E/E architectures. Furthermore, the growing trend of Mobility as a Service (MaaS) is encouraging the development of more integrated and flexible automotive electronics. As a result, Europe is positioning itself as a leader in the transition to software-defined vehicles.

In 2023, major players like Continental, Magna International, and Robert Bosch GmbH together held over 35% of the market share in the automotive electronics and electrical architecture industry. These industry leaders are driving growth through innovative technologies and solutions tailored to automotive needs, focusing on the efficiency, performance, and sustainability of electronic and electrical architecture design. Their advancements in E/E architecture technologies enhance vehicle electrical systems and contribute to improving the overall functionality of modern vehicles.

As the automotive industry transitions to electrification and advanced electronic systems, these companies are at the forefront of providing reliable and high-performance E/E architectures to meet the evolving demands of consumers and manufacturers. Their efforts not only improve vehicle performance but also align with global trends in transportation sustainability and energy efficiency, shaping the future of the market.

The main participants in the automotive electronic and electrical architecture industry include:

• Aptiv
• Continental Automotive
• Denso
• Hitachi Astemo
• Hyundai Mobis
• Infineon Technologies
• Magna International
• Robert Bosch
• Valeo
• ZF Friedrichshafen

The article is reproduced from the WeChat Official Account: qicheyanjiuyuanauto