Automotive Hardware Market

Automotive Hardware Market Outlook for 2023 to 2033

The global automotive hardware market is expected to hit USD 1,23,826.91 million by 2033, evolving at a CAGR of 4.3% during the projected period. The automotive hardware market is worth USD 81,277.80 million in 2023.

With rising demand for advanced connectivity and safety features in automobiles, automotive hardware sales are set to expand. Emerging technologies like electric automobiles and automated driving stimulate innovation in the automotive hardware industry.

The automotive hardware market is anticipated to see an upward trend in adopting sensors, processors, and communication modules to sustain the evolution. The rising adoption of automotive hardware for electric vehicles (EVs) is due to the global trend toward environmentally friendly transportation.

Attributes	Details
Market Value for 2023	USD 81,277.80 million
Market Value for 2033	USD 1,23,826.91 million
Market CAGR from 2023 to 2033	4.3%

Growth Prospects of the Automotive Hardware Market

• The switch to electric and hybrid vehicles represents a significant potential for automotive hardware producers. As governments promote cleaner transportation, sales of automotive hardware components are expanding.
• The demand for automotive door guards related to infotainment systems, telematics, and vehicle-to-everything (V2X) connectivity is increasing as vehicle control systems become more connected.
• The increasing demand for ADAS capabilities in automobiles presents potential for automotive hardware producers of sensors and processors.
• Expansion into emerging economies with a rising automotive industry, such as India and China, gives opportunities for automotive hardware suppliers.

Impediments to Automotive Hardware Market Growth

• The automotive sector is highly competitive, with constant pressure to cut prices. It can be a constraint for growth opportunities for automotive telematics manufacturers who combine the need for high-quality components with cost constraints.
• The quick rate of technological improvements in the automobile hardware sector might be challenging to keep up with.
• The health of the automotive hardware business is inextricably linked to the global economy's health. Economic downturns can diminish customer demand for automobiles, resulting in lower sales.
• Market saturation exists in some mature regions, such as North America and Europe. It implies that demand for new vehicles may be constrained, affecting demand for automotive hardware components.

Historical Performance of Automotive Hardware Market Vs Demand Prospects

From 2018 to 2022, the automotive hardware market experienced substantial changes. The sector experienced a continuous increase in the usage of electric and driverless vehicles. The market was valued at USD 77,941.50 million in 2022. Advanced driver assistance system (ADAS) hardware has become a regular feature, increasing the demand for sensors, cameras, and radar units. There was a rising emphasis on in-vehicle computing hardware, networking, and infotainment systems.

Historical Market Valuation, 2022	USD 77,941.50 million

The automotive hardware market is expected to grow from 2023 to 2033. The global move to electric vehicles continues, spurred by environmental concerns and political laws. Autonomous vehicles may become familiar, necessitating modern technology such as lidar sensors and fast processors. 

 As automobiles grow increasingly connected, cybersecurity has become critical for the growth of automotive door guards. 5G networks enable faster, more reliable communication in automobiles.

Category Wise Outlook

The below section is summarized with a thorough market segmentation analysis. Automotive hardware producers continuously monitor the demand for door latches and market advances. Passenger cars are the most prevalent vehicle type in the automotive equipment market.

Sales of Door Latches Driving the Market for Vehicle Hardware

• The door latches category is positioned to take the lead in surging sales in the competitive automotive hardware market.
• The vital component is essential for vehicle security and accessibility, making it a cornerstone of the door latches segment.

Leading Segment	Door Latch
Segment Share	22%

• As automotive hardware companies negotiate market fluctuations, focusing on the door latches category is critical to secure steady revenue growth.
• The automotive hardware suppliers may capitalize on growing customer needs and stay ahead of the competition by focusing on innovation, quality, and efficiency within the door latches category.
• Businesses in the thriving automotive hardware modules sector must adapt to changing market dynamics while maintaining product excellence.

Passenger Cars Spurring Revenue in the Automotive Hardware Market

• Passenger cars contribute to automotive hardware sales in the highly competitive market categorized by vehicle type.
• The prevalence of passenger cars can be linked to widespread customer demand and consistent expansion, making them a critical segment.

Leading Segment	Passenger Cars
Segment Share	71.3%

• While light commercial cars, buses and coaches, and trucks and trailers have a distinct significance, the passenger car category continues to be a significant revenue source.
• The passenger cars segment is the core sector with the best potential for sustainable growth and profitability within the automotive equipment market.
• The automotive hardware producers ought to emphasize meeting their diversified and developing needs.

Region/Country-wise Analysis

The section provides a comprehensive market analysis comprising information about different nations. The market for vehicle hardware is expanding in North America, Europe, and Asia Pacific. The most dramatic rise has been seen in Asia Pacific, followed by Europe. Automotive hardware producers ought to pay attention to North America.

Asia Pacific Market Outlook

Region/Country	CAGR (2023 to 2033)
India	7.2%
ASEAN	6.3%
China	5.2%
Japan	4.1%
Australia and New Zealand	2.1%

Assessing Automotive Hardware Landscape of India

• India's automotive hardware industry is developing, owing to a growing middle-class population and a shift toward more fuel-efficient and safer vehicles.
• The Indian government's emphasis on lowering emissions and improving road safety has spurred automotive door hinges demand analysis.
• Several major automobile manufacturers have invested considerably in the Indian automotive equipment market, encouraging innovation in hardware solutions for automobiles.

ASEAN Countries Expanding Automotive Hardware Horizons

• The ASEAN region enjoys steady expansion in the automotive hardware sector as vehicle ownership increases and economic circumstances improve.
• Local and multinational automotive hardware providers are expanding their presence in ASEAN countries to meet the rising demand for components and accessories.
• The diversity of the ASEAN area's automotive markets creates opportunities for low-cost and high-end automotive hardware goods.

Automotive Hardware Evolution in China

• China has a substantial global automotive market due to a burgeoning middle class and significant demand for electric vehicles (EVs).
• The Chinese government's encouragement of EV development and innovation accelerates growth in automotive hardware, notably in the electric vehicle sector.
• Local automakers and technological giants are investing significantly in automotive hardware research and development and production competencies.

Shaping the Japanese Future of Mobility in Automotive Hardware

• Japan has a history of innovation, with a concentration on high-quality automotive hardware components and sophisticated manufacturing processes to boost the market expansion for automotive hardware.
• Japanese automotive hardware vendors are at the forefront of precision component manufacturing and cutting-edge technology for global automotive markets.
• Japan remains a research and development hotspot, notably in areas like autonomous driving and linked car technologies. The factor surges the automotive hardware sales.

ANZ Automotive Hardware Industry in Transition

• Australia and New Zealand have smaller automotive markets that place a premium on safety, quality, and environmental criteria.
• The ANZ countries place a premium on automotive hardware that complies with stringent safety and pollution requirements, fueling demand for innovative components.
• The automotive fastener market in Australia and New Zealand is distinguished by an emphasis on specific automotive hardware demand, such as off-road and heavy-duty vehicles, and a growing interest in electric and hybrid cars.

Europe Market Outlook

Countries	CAGR (2023 to 2033)
France	4.2%
Italy	3.7%
Spain	3.3%
United Kingdom	2.9%
Germany	2.5%

Innovation and Excellence in France’s Automotive Hardware Sector

• In its automobile hardware industry, France actively promotes green mobility options. The French government provides subsidies for EVs and is putting money into the infrastructure needed for charging them.
• France is putting much effort into smart transportation technology to improve road safety, including enhanced driver assistance systems. This factor escalated the automotive hardware market growth.

Sustainable Solutions for Italy's Automotive Hardware Sector

• The luxury and high-performance automobiles distinguish Italy's automotive hardware sector. While Italy has a long history of creating high-end combustion-engine automobiles, there is a growing interest in environmentally friendly hardware.
• Italy's automakers are introducing hybrid vehicles in response to the shift toward cleaner mobility alternatives, stimulating market growth.

Accelerating Growth and Innovation in Spain's Automotive Hardware Market

• Spain’s automotive hardware market is becoming increasingly concerned with environmentally friendly solutions.
• Spain's automotive hardware market is seeing an increase in electric and hybrid car hardware as part of its efforts to cut emissions and promote sustainable transportation choices.
• Spain to increase its charging infrastructure and investigate renewable energy integration potential to boost cleaner transportation, surging automotive hardware sales.

Shift of the United Kingdom in the Automotive Hardware Market

• The automotive hardware market in the United Kingdom is attempting to deal with the difficulties brought on by changing legislation and the global movement toward environmental sustainability.
• The United Kingdom is making large expenditures in EV hardware, including charging infrastructure and battery production.
• The United Kingdom automotive fastener market is studying the creation of autonomous vehicle infrastructure and hardware.

Evolving Trends of Automotive Hardware in Germany

• The automotive hardware market in Germany is a global leader with a strong emphasis on innovation.
• Germany has made significant investments in battery technology, charging infrastructure, and self-driving technologies, putting it at the forefront of electric and autonomous vehicle development.
• The government offers incentives for electric vehicles, which encourages the adoption of electric hardware components in the automotive sector.

North America Market Outlook

Countries	CAGR (2023 to 2033)
United States	2.2%
Canada	3.3%

Rising Demand for EV Boosts Automotive Hardware Growth in the United States

• The United States remains an influential player in the North American automotive hardware market, owing to a robust manufacturing sector and a significant consumer market.
• Soaring customer demand for electric vehicles and sophisticated safety features are fueling expansion in the automotive hardware business in the United States.
• The Biden administration's emphasis on sustainable energy and infrastructure spending is likely to benefit automotive hardware sales, notably in the electric car segment.

Canada Automotive Hardware Sector Tied to the United States Industry

• Canada's automotive hardware market is strongly tied to the United States, with numerous Canadian firms exporting components to the United States automotive industry.
• The Canadian government's emphasis on environmental sustainability and electric car infrastructure expenditures should boost demand for eco-friendly automobile components.

Competitive Landscape Analysis of the Automotive Hardware Industry

The market is characterized by many competitors contending for automotive hardware market share. To fulfill the ever-changing demands of the automotive sector, automotive hardware vendors place a premium on innovation, quality, and cost-efficiency.

Global expansion, strategic collaborations, and technology improvements are frequent strategies. The market is very dynamic and competitive, with automotive hardware providers continually responding to evolving customer tastes and regulatory changes to maintain their positions.

Noteworthy Advancements in the Automotive Hardware Market

Company	Details
DENSO	To improve object detection for safer nighttime driving and lower accident rates, KOITO and DENSO work together to integrate lighting and image sensor technology.
Continental	With the goal of introducing an industry-first hardware-as-a-service model by 2027, Continental and Aurora have signed an agreement to create commercially scalable autonomous trucking systems. The partnership, which represents a crucial step toward autonomous mobility in transportation, uses Continental's expertise in automotive solutions and Aurora's autonomous technology.
DENSO Corporation	DENSO Corporation has acquired complete control of Certhon Group to expand its global agriculture production business. The acquisition uses its partnership and horticulture technology knowledge to address global food concerns. The strategic decision aligns with DENSO's goal to improve the food value chain while resolving societal problems associated with agriculture and food.
ZF Friedrichshafen	ZF Group and Leapmotor have created a strategic cooperation in Hangzhou, China, to focus on creating innovative and intelligent chassis for electric vehicles to improve consumer safety and comfort.
Bosch	The Carolina Panthers and San Antonio Spurs partnered with Bosch Power Tools to assist regional causes. They are going to sponsor neighborhood projects and offer support to have a good effect.

Essential Automotive Hardware Manufacturers

• Bosch
• Continental
• Denso
• Valeo
• Magna International
• ZF Friedrichshafen
• Autoliv
• Panasonic Automotive
• Infineon Technologies
• NXP Semiconductors
• Aptiv (formerly Delphi Automotive)
• Alpine Electronics
• Aisin Seiki Co., Ltd.
• Harman International

Key Segments

By Product:

• Door Latches
• Exterior Door Handles
• Door Seals
• Door Straps
• Door Hinges
• Mounting Brackets
• Gas Springs
• Fuel Flaps
• Grab Handles
• Shackles
• Bonnet Support Rods
• License Plates
• Seat Belt Latches
• Door Lock Buckles

By Vehicle:

• Passenger Vehicles
  • Compact Cars
  • Mid-sized Cars
  • Luxury Cars
  • SUVs
• Light Commercial Vehicles
• Buses and Coaches
• Trucks and Trailers

By Sales Channel:

• OEM
• Aftermarket

By Region:

• North America
• Latin America
• Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Frequently Asked Questions

What is the Current Automotive Hardware Market Valuation?

The automotive hardware market is worth USD 81,277.80 million in 2023.

How Big Can the Automotive Hardware Market Be by 2033?

The market is estimated to reach USD1,23,826.91 million by 2033.

What is the Automotive Hardware Market Growth Potential by 2033?

The automotive equipment market is anticipated to expand at a 4.3% CAGR through 2033.

Which Product Segment Dominates the Automotive Hardware Market?

The door latch segment holds a share of 22.0% of the market.

Which Vehicle Type Leads the Market?

Passenger cars account for 71.3% of the automotive hardware market share.