Innovation in the automotive electronics has been growing and it plays a key role when it comes to road safety. There are several market drivers like economic, ecology and safety that are critical for the automotive sector. 

The automotive market is impacted by these economic factors including global GDP, consumer confidence, employment levels, availability of credit and fuel prices. Typically, economic factors that impact disposable income also drive the automotive sector.

In addition to economic drivers, the automotive sector is impacted by ecological and safety factors and concerns that are quite often mandated by governments, including fuel economy and CO2 emission levels. Advances in electronics have enabled automotive manufacturers to increase the value in their products by offering more features and improved reliability.

New technologies evolving in this sector include semiconductor electronics capable of delivering more efficient power management and conversion systems. These products are important drivers of improved fuel economy and emissions performance.

The Indian auto component industry is expected to register a turnover of US$ 66 billion by FY 15-16 with the likelihood to touch US$ 115 billion by FY 20-21 depending on favourable conditions, as per the estimates of Automotive Component Manufacturers Association of India (ACMA). In addition, industry exports are projected to reach US$ 12 billion by FY 15-16 and add up to US$ 30 billion by FY 20-21.

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