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The growth in the market is primarily driven by the escalating demand for enhanced safety and comfort features in vehicles. The market also gets impetus from government regulations formed for safety in the automotive sector.
The Global Automotive Cockpit Electronics Market is the market for all electronic systems that are installed in the cockpit of a vehicle. This includes everything from the infotainment system and instrument cluster to the climate control system and advanced driver assistance systems (ADAS).
The introduction of a wide range of sensors along with modern automotive control amenities play a vital role in introducing developments in the automotive cockpit electronics. The global cockpit electronics market comprises luxury goods that are focused on enhancing driving experience by creating a comfortable atmosphere inside the vehicle.
The global automotive cockpit electronics market is expected to grow from $xx billion in 2022 to $xx billion by 2030, at a CAGR of 8.0% during the forecast period. The market growth is attributed to the increasing demand for comfort, safety, and convenience features in vehicles, the growing adoption of connected vehicles, and government regulations mandating the installation of certain safety features in vehicles.
Some of the major drivers contributing to the overall growth of the automotive cockpit electronics market include increasing consumer awareness regarding advanced technologies, increasing per capita income of consumers, growing demand for technically advanced cars, and changing demand for vehicle electronics from analog to digital.
Advancements in technology have given rise to market competition owing to which major leading organizations are heavily investing in R&D activities. However, complicated hardware and software designs and high expenditure in terms of manufacturing are challenges to the automotive cockpit electronics market.
Automotive cockpit electronics represents an area dedicated to instrument panel and controls that allow center stack electronics and information for enhanced safety, convenience, and driving experience. Buoyed by increasing use of advanced technology, the share of automotive electronics components in vehicles in terms of vehicle cost has gradually increased from just 8-10% to over 30% in the recent years, providing a significant scope of opportunity for automotive cockpit electronics.
Growth in the global market is set to be driven by increasing consumer preference for convenience features and enhanced user experience. Rising disposable income and demand for autonomous vehicles are prompting people to invest in latest car models with advanced electronics that allow users to view information in the line-of-sight, like navigation. The integration of sophisticated technologies and government regulations on telematics and increasing connectivity aid in market expansion. The market growth is also bolstered by increasing use of innovative technologies like head-up display and in-car navigation systems.
The Automotive Cockpit Electronics market in the U.S. is estimated at US$XX Billion in the year 2023. The country currently accounts for a ~27% share in the global market. China, the world’s largest automotive market, is expected to reach an estimated market size of US$XX Billion in the year 2030.
The US witnessed high penetration rate for automotive navigation systems owing to robust uptake within the light commercial vehicles segment and changing consumer preferences. The Asia-Pacific region is expected to gain from increasing consumer demand and rising vehicle production. The region is receiving notable contributions from India, South Korea and Indonesia, representing major automobile hubs on the basis of vehicle sales and production.
Visteon, a leading worldwide technology company servicing the mobility sector, announced the release of its fourth-generation SmartCore cockpit domain controller, a solution designed to help global automakers deliver a more connected, customized, and safe driving experience.
Traditional cluster information displays, safety inputs (internal and external camera feeds), and Android Automotive infotainment ranging from maps and parking to charging locations, as well as enjoyable entertainment experiences for passenger displays, are all part of the modern intelligent cockpit experience.
Visteon’s fourth-generation SmartCoreTM cockpit domain controller unifies all of this data across multiple cockpit displays and can deliver feature upgrades wirelessly over-the-air, eliminating the need to replace hardware and extending the platform’s lifecycle. Customer deliveries of the new Aito M5 began over the weekend in Shanghai, marking another significant stride for Huawei in the realm of auto manufacturing.
The Aito M5 appears to be a mid-size plug-in hybrid SUV with a look similar to the Porsche Macan. The company’s AITO (Adding Intelligence to Auto) series’ debut model.
The M5, which was created in collaboration with the Chinese manufacturer Seres, is the first production car in the world to be equipped with Huawei’s Harmony OS operating system, so there is where the true significance resides.
This drives the so-called Harmony OS Smart Cockpit, which has a 15.6-inch touchscreen in the Centre, a digital instrument cluster, and an infotainment system powered by Huawei. There are clear connections between this and other Harmony OS-powered products from the company, including the incorporation of its personal assistant Celia and navigation app Petal Maps.
The creation of the allegedly first Bluetooth and NFC (Near Field Connection) capable digital car key in the world is an illustration of the functionality of Harmony OS in the M5. The digital key for unlocking and locking the automobile on Harmony OS phones is kept in the Huawei Wallet app and functions even when the phone battery is low without the need for a physical key.
Visteon Corporation has agreed to purchase Johnson Controls’ automotive electronics unit for $265 million in cash, subject to adjustments. The transaction is expected to close after receiving regulatory and other consents and approvals.
Visteon’s competitive position in the fast-growing vehicle cockpit electronics category will be strengthened by the acquisition, which will increase its worldwide scale, production and engineering base, product portfolio, and client penetration. The combined company will be a $3 billion global electronics company with a No. 2 global position in driver information and above-average category growth rates, serving nine of the world’s top ten vehicle manufacturers.
The business to be acquired by Visteon earned around $1.3 billion in revenue and $58 million in EBITDA in the fiscal year just finished (earnings before interest, taxes, depreciation and amortization). This EBITDA includes a $12 million deduction for corporate allocations that will not be transferred as part of the deal.
Visteon will determine whether additional resources at its corporate headquarters are required to support this activity. With projected yearly cost synergies, the deal provides prospects for long-term margin development through economies of scale. The deal has no bearing on the company’s previously announced $1 billion share repurchase programme, of which $875 million is still available.
Major companies operating in the automotive cockpit electronics market are Robert Bosch GmbH, Visteon Corporation, Alpine Electronics Inc, Panasonic Corporation, Continental AG, Garmin Ltd, DENSO CORPORATION, Harman International Industries Inc, Clarion Company Ltd, Delphi Automotive Plc, among others. These companies are making new investments to improve their technology in order to retain their competitiveness in the industry.
