Automotive Under the Hood Electronics

Global Automotive Under the Hood Electronics Market to Reach US$65.5 Billion by 2030

The global market for Automotive Under the Hood Electronics estimated at US$50.0 Billion in the year 2024, is expected to reach US$65.5 Billion by 2030, growing at a CAGR of 4.6% over the analysis period 2024-2030. Passenger Cars End-Use, one of the segments analyzed in the report, is expected to record a 5.0% CAGR and reach US$41.1 Billion by the end of the analysis period. Growth in the Commercial Vehicles End-Use segment is estimated at 4.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.5 Billion While China is Forecast to Grow at 7.6% CAGR

The Automotive Under the Hood Electronics market in the U.S. is estimated at US$13.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$13.5 Billion by the year 2030 trailing a CAGR of 7.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.7% and 4.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.7% CAGR.

Global Automotive Under the Hood Electronics Market - Key Trends and Drivers Summarized

How Are Automotive Under the Hood Electronics Revolutionizing Modern Vehicles?

Automotive under the hood electronics have become a crucial aspect of vehicle design, transforming how modern cars operate and perform. These electronic components, which include engine control units (ECUs), transmission control modules, sensors, and powertrain control systems, are essential for enhancing fuel efficiency, performance, and emissions control. With the automotive industry moving toward electrification and greater automation, the demand for sophisticated under the hood electronics has increased exponentially. These systems enable features like advanced fuel injection, turbocharging, and hybrid power management, which are critical for meeting stringent regulatory requirements and consumer expectations. Moreover, under the hood electronics play a significant role in ensuring the seamless operation of various subsystems, contributing to the overall reliability and safety of the vehicle.

What Are the Key Segments of Automotive Under the Hood Electronics?

Key components include ECUs, microcontrollers, power management integrated circuits (PMICs), and sensors. Each of these components plays a vital role in optimizing engine performance, managing emissions, and enhancing fuel efficiency. Vehicle types are segmented into passenger vehicles and commercial vehicles, with passenger vehicles holding a significant share of the market due to high consumer demand for fuel-efficient and technologically advanced models. Applications for under the hood electronics include engine management, transmission control, fuel management, and thermal management systems. Hybrid and electric vehicles are driving additional demand, as these vehicles require more sophisticated power management and control systems. The aftermarket segment is also expanding, as more vehicle owners seek to upgrade their cars with the latest electronic components for better performance and reliability.

What Are the Emerging Trends and Technological Advancements?

Several trends are shaping the automotive under the hood electronics market, with electrification being one of the most prominent. As automakers transition to electric and hybrid vehicles, the complexity and sophistication of under the hood electronics have increased. High-voltage power electronics, battery management systems, and thermal management solutions are now essential components in electric vehicles. Another trend is the rise of smart engine management systems that use real-time data and AI algorithms to optimize performance and reduce emissions. The integration of Internet of Things (IoT) technology has enabled predictive maintenance and remote diagnostics, giving manufacturers and consumers greater control over vehicle performance. Additionally, advancements in semiconductor technology have led to more efficient and compact electronic components, reducing vehicle weight and improving overall efficiency. The development of over-the-air (OTA) software updates has also revolutionized the way electronic systems are managed and upgraded, keeping vehicles up-to-date with the latest technology and performance enhancements.

What Factors Are Driving the Growth in the Automotive Under the Hood Electronics Market?

The growth in the automotive under the hood electronics market is driven by several factors, including the increasing demand for fuel-efficient and low-emission vehicles, advancements in electric vehicle technology, and stricter regulatory standards. Government regulations aimed at reducing carbon emissions and improving fuel economy have compelled automakers to invest heavily in advanced electronic systems that optimize engine performance and reduce environmental impact. The rapid adoption of hybrid and electric vehicles has also spurred demand for more sophisticated power management and thermal control solutions. Additionally, the growing consumer preference for vehicles with enhanced safety and performance features has accelerated the integration of cutting-edge electronics under the hood. The automotive industry’s focus on vehicle automation and connectivity is another significant driver, as these trends require robust electronic architectures capable of supporting advanced driver-assistance systems and autonomous driving features. Finally, the ongoing development of 5G and vehicle-to-everything (V2X) communication technologies is expected to further propel market growth, as these advancements enable more seamless and efficient electronic control systems.

SCOPE OF STUDY:

The report analyzes the Automotive Under the Hood Electronics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
End-Use (Passenger Cars End-Use, Commercial Vehicles End-Use, Two-Wheelers End-Use)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 44 Featured) -

• Aptiv Plc
• Bosch Mobility Solutions
• Bourns, Inc.
• Continental AG
• CTS Corporation
• Delphi Auto Parts
• Denso Corporation
• FORVIA Group
• Hamamatsu Photonics KK
• HELLA GmbH & Co. KGaA

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.