Indian auto electronics market estimated to touch $70 billion by 2032

Safety controls have the highest demand in the country, accounting for 49% of total demand in 2022 followed by power electronics at 32%

Globally, the share of auto-electronic parts in any vehicle is growing due to multiple factors. The global market for automotive electronics is poised to grow at a CAGR of 8–10 per cent to reach USD 540–650 billion in 2032 from USD 250 billion in 2022.

As vehicles incorporate more electronics across multiple areas, OEMs are expected to account for nearly 70 - 75 per cent of the market as most electronics are likely to be factory fitted.
 

The Grant Thornton-ACMA report titled Auto Electronics Manufacturing: Conquering the Next Frontier said that the Indian automotive electronics market currently is estimated at USD 10.6 billion of which around 86 per cent is for the domestic market while the rest is for vehicle exports.

India, currently, relies heavily on imports to fulfil the demand of auto-electronic products with around 64 per cent of the total demand being imported. The overall market for auto-electronics is estimated to reach USD 70.3 - 74.4 billion by 2032.

Domestic market demand is projected to grow at a CAGR of 21.5 per cent from 2022 to 2032 to reach a market size of USD 63.7 billion.

Demand from exported vehicles is forecasted to reach a market size of USD 6.6 to 10.7 billion in 2032, registering a CAGR of 15.8 per cent - 21.4 per cent.

Safety controls have the highest demand in the country, accounting for 49 per cent of total demand in 2022 followed by power electronics at 32 per cent, communication & entertainment and body electronics at 10 per cent each.