Rising demand for EVs, safety systems, and smart mobility drives sustained growth in global and European automotive electronics.

ROCKVILLE PIKE, MD, UNITED STATES, November 26, 2025 /EINPresswire.com/ --
The global automotive electronics market is projected to grow from USD 350 billion in 2025 to over USD 600 billion by 2035, reflecting a compound annual growth rate (CAGR) of approximately 5.2% over the decade. The European automotive electronics market, accounting for nearly 25% of the global market in 2025, is expected to expand from USD 87 billion in 2025 to USD 145 billion by 2035, driven by stringent emissions regulations, widespread adoption of electric vehicles (EVs), and increasing demand for advanced driver-assistance systems (ADAS).

Electrification remains the primary growth driver. Electric vehicle penetration in Europe is forecasted to increase from 18% of new vehicle sales in 2025 to nearly 55% by 2035, while globally EV adoption is projected to reach 45% of new vehicle sales by 2035. This shift is fueling demand for high-voltage power electronics, battery management systems, and thermal control electronics, which together are expected to contribute more than 30% of the total electronics revenue by 2030.

ADAS and autonomous driving technologies represent another major market segment. The global ADAS electronics market is projected to grow from USD 40 billion in 2025 to USD 95 billion by 2035, corresponding to a CAGR of 8.3%. In Europe, regulatory mandates such as the EU General Safety Regulation, which requires features like lane-keeping assistance, automated emergency braking, and driver monitoring systems, are expected to drive ADAS adoption in nearly 80% of new vehicles by 2030. Key components—including radar, lidar, camera modules, and domain controllers—are forecasted to account for 45% of European automotive electronics revenue by 2035.

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Connectivity and infotainment electronics are also expanding rapidly. The global market for connected vehicle electronics is expected to grow from USD 25 billion in 2025 to USD 60 billion by 2035. Increasing consumer demand for multi-screen displays, AI-driven voice assistants, and over-the-air (OTA) software updates is contributing to this growth. In Europe, around 70% of new vehicles are expected to be equipped with advanced connected infotainment systems by 2030, representing a nearly 10% CAGR over the forecast period.

Supply chain resilience is critical to sustaining this growth. Semiconductor demand for automotive electronics is projected to reach over 1.5 million units globally by 2030, with Europe aiming to increase local production capacity by 50% to reduce dependence on imports. Strategic partnerships between OEMs and tier-one suppliers are expected to optimize component availability and accelerate technology deployment.

By 2035, electronics are projected to represent up to 50% of the total vehicle value in premium segments, while mid-range vehicles will see electronics contributing 35–40% of total value, reflecting the industry-wide shift from mechanical to software-defined platforms. Electrification, autonomous driving, and connected mobility will remain the three pillars of growth, with Europe leading innovation due to regulatory support, infrastructure readiness, and high consumer adoption rates.

The 2025–2035 period will thus mark a defining era for the global and European automotive electronics markets, with technology and data-driven innovation at the forefront. Companies that invest in advanced electronics, AI-enabled software, and resilient supply chains are expected to capture the largest share of the projected USD 600 billion global market by 2035, solidifying Europe’s position as a leader in sustainable, connected, and intelligent mobility solutions.

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