Kevin Parmenter, Director, Applications Engineering. TSC, America
Besides broadcast radio receivers, electronics for actual vehicle operation started in the 1970s when they replaced traditional points and the distributor. Today, the automotive electronics market is at the forefront of the industry's transformation, with electrification, autonomy, connectivity and safety being its primary drivers.
A recent report from Fortune Business Insights cites the global automotive electronics market size as valued at USD 239.03 billion in 2022 and projects it to reach a valuation of USD 259.63 billion in 2023. By 2030 the market is expected to reach USD 386.24 billion with a CAGR of 5.8% during the forecast period.
As the industry continues to evolve, the market is being shaped by innovation, collaboration, and the ability to address challenges like cybersecurity and supply chain disruptions.
Every customer I have spoken with over the last six months or so can’t talk about anything other than supply chain resilience. What’s your plan to make parts in someplace other than China and Taiwan? Can you do this by next quarter? They simply can’t discuss any other topic. (Meanwhile, they don’t want to change anything about the parts, while meeting all the global environmental requirements and, by the way, to drop the price by 10% a year.)
Supply chain disruptions. I get it. The industry's heavy reliance on global supply chains makes it vulnerable to unforeseen hits, as evidenced by the pandemic. The industry lost millions of dollars -- if not billions -- by not being able to service their customer base, and they don’t want it to happen again.
The demanding automotive electronics market isn’t for everyone. Growth has been tremendous and now we see ourselves in a shift to include not only electrification of the drive train but of the safety systems too, including ADAS, radar systems and sensors, 5G-6G wireless communications. This means infotainment, climate control. navigation and more. Also, there are governmental regulations to comply with, including emissions requirements and standards and safety regulations and concerns.
In the coming years, we can expect a growing array of electronic features and systems to enhance the driving experience, making vehicles safer, more efficient, and more connected than ever before. In addition to the need for technological innovations, supply chain efficiency and meeting safety requirements, consumers will mean exponentially more EV charging stations to replace the capacity of fuel filling stations. Can the Silicon and WBG capacity even keep up with the demand?
We are facing all this as an industry on top of other challenges. Smart organizations are setting up their technical and business processes to satisfy the automotive electronics market’s strict requirements for quality and reliability. This will enable them to also sell their innovative parts to other demanding markets. Are we ready for the growth uptick needing global capacity?
