Passenger Car Demand to Boost the Global Automotive Electronics Market
A recent report from Technavio is forecasting positive growth for many segments of the global automotive electronic market over the next four years.
A recent report from Technavio is forecasting positive growth for many segments of the global automotive electronic market over the next four years, as several related markets, such as automotive biometric vehicle access systems, automotive remote diagnostics, and diesel common rail injection systems, will likely witness an increase in revenues. The market for global automotive biometric vehicle access systems reportedly will to grow at a compound annual growth rate (CAGR) of more than 19% during the estimated period. The presence of numerous vulnerabilities in the existing keyless entry system is a critical factor driving the growth of this market. Car access technology has evolved from the use of manual keys to electronic keyless entry systems due to a spurt in incidences of stolen or misplaced mechanical keys by drivers. With the advent of the electronic keyless entry systems, the situation has changed drastically because vehicle access is now linked to electromagnetic frequency and communication wavelengths.
Remote vehicle diagnostics is a key telematics application that shows significant potential revenue from the aftersales of passenger cars during the forecast period. It has turned out to be the best available means to boost ROI on several new technology offerings, such as telematics applications and services and connected car offerings. Many vehicle manufacturers are therefore focusing on implementing remote diagnostics as a business model to explore this untapped revenue potential. Demand in the telematics market will be a key growth driver for the remote vehicle diagnostics market, which is anticipated to grow at a CAGR of more than 14% until 2020.
“One of the latest trends in the automotive remote diagnostics market is the emergence of a new advanced connected technology called prognostics,” said Siddharth Jaiswal, lead analyst. “This feature can actively monitor vehicle components’ health, and it subsequently notifies customers. For instance, GM’s prognostic feature focuses on the battery, starter motor, and fuel pump, and the technology is expected to be added in more vehicle parts over the next four years.”
Common rail injection plays a key role in mitigating fuel losses and emissions during the combustion process. An increase in regulatory norms, particularly in Europe and the Americas, have forced OEMs to comply with fuel economy standards. One such solution is to adopt the common rail injection technology, which increases the efficiency of fuel emission. The growing demand for diesel vehicles in the Americas is leading to the substantial penetration of common rail injection technology in the region, and the segment will likely grow at a CAGR of over 5% during the forecast period.
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