Market Report

Global automotive electronics market to grow at a CAGR of 19%

Published: May 30, 2016 | London, UK

Technavio research analysts are forecasting positive growth for many segments of the global automotive electronic market over the next four years as several related markets, including automotive biometric vehicle access systems, automotive remote diagnostics, and diesel common rail injection systems, will likely witness an increase in revenues.

It is predicted that the global automotive biometric vehicle access systems to grow at an impressive CAGR of more than 19% during the estimated period. The presence of numerous vulnerabilities in the existing keyless entry system is a critical factor driving the growth of this market over the forecast period. Car access technology has evolved from the use of manual keys to electronic keyless entry systems, due to a spurt in incidences of stolen or misplaced mechanical keys by drivers. With the advent of the electronic keyless entry systems, the situation has however changed drastically because vehicle access is now linked to electromagnetic frequency and communication wavelengths.

Remote vehicle diagnostics is a key telematics application that shows significant potential revenue from the aftersales of passenger cars during the forecast period. It has turned out to be the best available means to boost ROI on several new technology offerings such as telematics applications and services, or connected car offerings. Many vehicle manufacturers are therefore focusing on implementing remote diagnostics as a business model to explore this untapped revenue potential. This growth in the telematics market will be a key growth driver for the remote vehicle diagnostics market during the forecast period. With this, the global automotive remote diagnostics segment is anticipated to grow at a CAGR of more than 14% until 2020.

“One of the latest trends in the automotive remote diagnostics market is the emergence of a new advanced connected technology called prognostics. This feature can actively monitor vehicle components’ health, and it subsequently notifies customers. For instance, GM’s prognostic feature focuses on the battery, starter motor, and fuel pump, and the technology is expected to be added in more vehicle parts of the vehicles over the next four years,” said Siddharth Jaiswal, one of Technavio’s lead analysts for automotive research.

Some of the key vendors for the global automotive electronics market by industries include BioEnable, Techshino, and Miaxis for automotive vehicle access systems; Robert Bosch GmbH, Continental AG, and OnStar for automotive biometric remote diagnostics; and Bosch, Continental, and Delphi for diesel common rail injection systems.

Source: Technavio Research

Tags

Related Articles