India’s automotive electronics market to cross $ 18 billion by 2027: counterpoint
The Indian automotive electronics market is expected to cross $ 18 billion by 2027 with a compound annual growth rate (CAGR) of 17%, driven by increasing revenue levels and growing customer preference for digital experience in vehicles, a Counterpoint report said Tuesday. .
Automotive electronics sales are expected to triple over the period (from $ 6 billion in 2020), he said.
Counterpoint Research Analyst Soumen Mandal said: “Passenger vehicles are expected to capture nearly two-thirds of the Indian automotive electronics market driven by the increasing use of the Telematics Control Unit (TCU), infotainment and other electronic components such as on-board diagnostics (OBD), electronic control unit (ECU) and anti-lock braking systems (ABS). ” Telematics penetration in India remains low by global standards.
“However, people’s growing awareness of advanced security and communications services, coupled with more integrated connectivity service offerings by automakers, will drive this market in the future,” Mandal said.
Heads-up display (HUD), blind spot monitoring system, auto-dimming rearview mirror, advanced driver assistance systems (ADAS) and automatic transmission functions remain common features for cars in the segment. high-end (cars with an ex-showroom price of over Rs 11 lakh), he added.
The average cost of electronic components per passenger vehicle is expected to reach nearly Rs 2 lakh (2,685) USD by 2027, according to the report. Strict regulations such as Corporate Average Fuel Efficiency II (CAFE II) and Bharat Stage-VI (BS-VI) are also among the main drivers of increasing electronic content in a car.
The Indian two-wheeler market will also see the increasing adoption of automotive electronics.
In the three-wheeler category, electronics penetration is slower compared to passenger vehicles and two-wheelers. In-vehicle telematics and infotainment offerings are scarce in three-wheeled vehicles, given that this segment has the highest electric vehicle penetration among all vehicle classes.
“E-commerce will boost the telematics market, transporting specific products such as groceries and home appliances during the forecast period,” Mandal said.
The electronics market in the commercial vehicle segment is expected to exceed USD 530 million by 2027 due to the increasing adoption of telematics and other new technologies such as Exhaust Gas Recirculation (EGR) , selective catalytic reduction (SCR) and on-board diagnostics II (OBD II).
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)