Auto Electronics Market Still Zipping Along PDF Print E-mail
Written by Mike Buetow   
Monday, 03 February 2014 11:08

LOS ALTOS, CA -- A bevy of electronics-based options are driving new car decisions, according to a new report. World production of automotive electronics will grow 8.4% this year, up from a 6.8% gain in 2013, says Henderson Ventures in its monthly report.

"Car makers have hit the technological accelerator," writes Ed Henderson, president of Henderson Ventures. The research firm predicts the market will expand 7.7% and 7.5%, respectively, in 2015 and 2016, when the market will exceed $200 billion.

"[T]he sophistication of electronics-based additions has been kicked up a gear with high-tech apps such as adaptive cruise control, collision mitigating systems and automated parking, among others," Henderson said. "Despite the fact that many of the features are used only occasionally, manufacturers have found that the technological smorgasbord available to potential customers helps to move cars and accelerate profitability.

The US market will see growth of 6.4% and 5.8%, respectively, in 2014 and 2015, down from 9.6% in 2013. Western Europe will rebound from two straight years of losses to post gains of 2% and 2.9%, respectively, in 2014 and 2015.

China and Japan will see the most robust gains. Japan will grow 9.1% and 8.1%, respectively, while China will be up 11.8% and 10.9%.

 

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