Market Trends of Automotive Terminals Industry
This section covers the major market trends shaping the Automotive Terminals Market according to our research experts:
Growing Sales of Electric Vehicles to Drive the Growth of the Market
The sales of electric vehicles in the past few years have witnessed significant growth due to the need for addressing future energy requirements. The EV market is coming up as an integral part of the automotive industry.
In 2021, the demand for electric vehicles surged, and around 3.5 million battery electric vehicles (BEVs) were sold globally, compared to 3.2 million units in 2020. Despite the COVID-19 pandemic and global chip shortage, the sales of electric vehicles witnessed a significant increase in 2020 and 2021 compared to previous years. The upsurge in demand was due to the combination of new and attractive models, incentive boosts by green recovery funds by governments, implementation of stringent emission standards, improved availability, and the extensive promotion of EVs.
Growing production of vehicles with integrated ADAS features in the wake of rising awareness toward the comfort and safety of passengers and government regulations mandating safety features are expected to drive demand in the market. Moreover, the rising acceptance of self-driving or automated vehicles further contributes to the enhanced growth of the market. Additionally, technological advancements in collision avoidance systems and a growing emphasis on multifunctional systems create lucrative opportunities for players in the market.
In addition to this, ADAS features, such as adaptive cruise control, parking assist, lane departure warning and assist system, blind-spot detection, night vision system, adaptive front lighting system, etc., have been gradually penetrating vehicles globally, majorly in the European (EU) and North American region, and countries, like China and Japan.
Europe and Asia-Pacific to Lead the Automotive Terminals Market
Europe ranks top in implementing safety features in vehicles, while the Americas and Asia-Pacific follow the footprints of Europe. Euro NCAP released a few protocols on safety features, like autonomous emergency braking, driving monitoring, and child occupant protection, in 2021 and is anticipating mandating these features in EU vehicles by 2020-2025. With growing regulations toward vehicle safety standards across every region, the adoption of safety and security systems in automobiles is expected to increase, which in turn, will result in the demand for and usage of terminals during the forecast period.
The increasing demand for electric and semi-autonomous vehicles in Europe is simultaneously impacting the usage of automotive terminals. For instance, the share of electric vehicles in the regional market has increased by approximately 30% over the past few years. It is expected to grow over the next five years, owing to growing environmental concerns. Thus, the region is expected to witness high demand for automotive terminals during the forecast period.
The Asia-pacific region market is expected to grow at a faster pace during the forecast period owing to development in infrastructure, increased vehicle sales, and government regulations regarding safety devices in vehicles. Furthermore, China is leading the market in terms of revenue due to its massive use of electronic components in vehicles, followed by Japan, Korea, and India.
The growing number of self-driving vehicles in North America and the demand for next-generation vehicles will enhance the growth of the market over the forecast period. The United States is one of the biggest markets for ADAS implementation, with the highest penetration globally and the highest fitment value per vehicle. The best-selling OEMs across the country (Ford, Toyota, Honda, Nissan, etc.) have already implemented a suite of ADAS features as a feature (standard/optional) in selected models. Such developments are likely to contribute to the overall development of the market. For instance,
- In December 2021, Toyota and Honda stated that they are committed to focusing on collision reduction technologies, announcing near and long-term developments in their advanced driver assistance system (ADAS) offerings.
The above-mentioned development across the region is likely to witness major growth for the market during the forecast period.
