Indian automotive electronics market to grow to $ 18 billion by 2027

Indian automotive electronics market to grow to $ 18 billion by 2027

Analyst firm Counterpoint predicts that the Indian automotive electronics market will triple between 2020 and 2027, from $ 6 billion to over $ 18 billion. The average annual growth rate will be 17%. Analysts base their optimism on the growth of income and consumer interest in the presence of digital technology in the car.

The Indian auto market is facing challenges due to the ongoing COVID-19 pandemic. In 2020, car sales in this country fell by 26%. But Counterpoint expects significant growth in car sales over the next six years. This growth will be mainly driven by the proliferation of advanced communications technology and electrification.

The average cost of electronic components per passenger vehicle is expected to reach $ 2,685 by 2027. Strict regulations governing fuel efficiency and emissions are considered one of the key drivers of the increase and sophistication of vehicle electronic systems.

Sales of electronics in the commercial vehicle segment are projected to surpass $ 530 million by 2027 due to the growing adoption of telematics and other new technologies such as exhaust gas recirculation (EGR), selective catalytic reduction (SCR) and on-board diagnostics II (OBD II). ). Automotive Industry Standard (AIS) 140 and increased stakeholder awareness are driving the penetration of telematics into commercial vehicles. The infotainment systems currently found in premium models will penetrate other market segments as well.

Indian automotive electronics market to grow to $ 18 billion by 2027

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