Automotive E/E Architecture Market Size, Share, Analysis, Trends, Growth, 2032

Automotive E/E Architecture Industry Prospective:

The global automotive E/E architecture market size was evaluated at $76 billion in 2023 and is slated to hit $154 billion by the end of 2032 with a CAGR of nearly 8.7% between 2024 and 2032.

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Automotive E/E Architecture Market: Overview

Automotive E/E architecture also referred to as automotive electrical/electronic architecture is an integrated tool of electronic components, wiring, and software that regulates a slew of functions of vehicle. Furthermore, it ensures seamless vehicle operations ranging from engine control to infotainment tools. Reportedly, key parts of automotive E/E architecture include sensors, electronic control units, actuators, software apps, and communication networks.

Key Insights

• As per the analysis shared by our research analyst, the global automotive E/E architecture market is projected to expand annually at the annual growth rate of around 8.7% over the forecast timespan (2024-2032)
• In terms of revenue, the global automotive E/E architecture market size was evaluated at nearly $76 billion in 2023 and is expected to reach $154 billion by 2032.
• The global automotive E/E architecture market is anticipated to grow rapidly over the forecast timeline owing to an increase in the number of electric vehicles and advancement in autonomous driving systems.
• In terms of vehicle type, the passenger vehicles segment is slated to register the highest CAGR over the forecast period.
• Based on propulsion type, the electric propulsion segments are predicted to contribute majorly towards global market expansion in the upcoming years.
• On basis of system type, the electronic systems segment is anticipated to boost the segmental space in the ensuing years.
• Region-wise, the Asia-Pacific automotive E/E architecture industry is projected to register the fastest CAGR during the assessment timespan.

Automotive E/E Architecture Market: Growth Factors

A surge in the use of electric cars globally to scale up the global market surge over 2024-2032

An increase in the number of electric vehicles and advancement in autonomous driving systems will prop up the global automotive E/E architecture market. Additionally, a surge in the vehicle connectivity along with need for advanced safety & security features such as ADAS systems will spur the market expansion globally in the years ahead.

Apart from this, strict emission laws along with safety protocols are expected to spur the global market surge in the years ahead. Software-centric approach along with need for space optimization is projected to elevate the expansion of the market globally.

Automotive E/E Architecture Market: Restraints

Escalating development prices and cyber-attacks & hacking can retard the global industry expansion by 2032

Surging development costs and cyber-security threats are expected to hinder the expansion of the global automotive E/E architecture industry. Moreover, supply chain oscillations and strict laws can obstruct the expansion of the industry across the globe.

Automotive E/E Architecture Market: Opportunities

An increase in the demand for ADAS will open new growth avenues for the global market over forecast period

Growing preference for electrification and use of advanced driver assistance systems is expected to boost the expansion of the global automotive E/E architecture market.

Moreover, rise in the production of software-defined vehicles are likely to proliferate the growth of the market globally. Demand for autonomous driving systems and demand for electric vehicles will enunciate the growth of the market globally in the years ahead.

Automotive E/E Architecture Market: Challenges

Obsoleteness of existing technologies & skepticism among consumers about new ones can retard the global industry surge

Complexities of the architecture and less acceptance of consumers are likely to challenge the growth of the global automotive E/E architecture industry. Technological obsolescence and need for adhering to compliance implemented by government can hinder the global industry surge in the years ahead.

Automotive E/E Architecture Market: Report Scope

Automotive E/E Architecture Market: Segmentation

The global automotive E/E architecture market is divided into vehicle type, propulsion type, component type, system type, structure type, and region.                                             

In terms of vehicle type, the automotive E/E architecture market across the globe is segmented into passenger vehicles and commercial vehicles segments. Apparently, the passenger vehicles segment, which garnered nearly two-third of the global market revenue in 2023, is set to record fastest CAGR in the next couple of years as a result of massive demand for passenger vehicles globally and use of ADAS systems in passenger cars.

Based on the propulsion type, the global automotive E/E architecture industry is divided into internal combustion engine and electric propulsion segments. Apparently, the electric propulsion segment, which led the global industry share in 2023, is set to contribute lucratively towards the global market expansion in the coming years and this can be due to rise in the vehicle electrification, technological breakthroughs, and supportive government laws. Additionally, customer demand for eco-friendly vehicles and funding for research activities will drive the segmental surge.

On the basis of system type, the global automotive E/E architecture market is sectored into electronic systems and electrical systems segments. Moreover, the electronic systems segment, which led the global market in 2023, is projected to steer the segmental space in the upcoming years owing to surging demand for electric cars and use of new techniques in the new vehicles.

Based on the component type, the global automotive E/E architecture industry can be bifurcated into software and hardware segments.

On the basis of structure type, the automotive E/E architecture market across the globe is sectored into distributed architecture, vehicle centralized architecture, and domain centralized architecture segments.

Automotive E/E Architecture Market: Regional Insights

North America is projected to maintain numero uno position in the global market over the analysis timeline

North America, which accounted for about half of the global automotive E/E architecture market size in 2023, is expected to lead the global market in the analysis timespan. Furthermore, the regional market expansion in the coming seven years can be due to huge demand for electric cars in the countries such as the U.S.

Moreover, rise in the investment in the new automotive systems and presence of strong technology infrastructure in the U.S. will prop up the regional market surge in the ensuing years. Presence of key players in the countries such as Ford, Aptiv Plc, and General Motors will spearhead the regional market surge in the years ahead.

Asia-Pacific automotive E/E architecture industry is anticipated to register the highest CAGR in the projected timeline. The exponential growth of the industry in the region can be credited to swift acceptance of electric vehicles and use of smart & connected vehicles in the Asian countries. Industry 4.0 revolution has brought a paradigm shift in the automotive sector in APAC, thereby bolstering the industry surge in the region.

Automotive E/E Architecture Market: Competitive Space

The global automotive E/E architecture market profiles key players such as:

• Valeo Corporation
• Toyota Motor Corporation
• DENSO Corporation
• Texas Instruments
• BYD Company Limited
• Continental AG
• ZF Friedrichshafen AG
• Hyundai Motor Group
• Veoneer Inc.
• NXP Semiconductors
• Panasonic Corporation
• Harman International Industries Inc.
• Robert Bosch GmbH
• Lear Corporation
• Aptiv PLC
• Infineon Technologies
• Magna International Inc.

The global automotive E/E architecture market is segmented as follows:

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Propulsion Type

• Internal Combustion Engine
• Electric Propulsion

By Component Type

• Software
• Hardware

 By System Type

• Electronic Systems
• Electrical Systems

By Structure Type

• Distributed Architecture
• Vehicle Centralized Architecture
• Domain Centralized Architecture

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa