Automotive Hardware Market Trends and Forecast
The future of the global automotive hardware market looks promising with opportunities in the passengers car and truck & trailer markets. The global automotive hardware market is expected to grow with a CAGR of 5.3% from 2025 to 2031. The major drivers for this market are the increasing vehicle production, the rising demand for automotive components globally, and the growing vehicle maintenance services.
Lucintel forecasts that, within the type category, door latch is expected to witness higher growth over the forecast period.
Within the application category, passengers car is expected to witness the higher growth.
In terms of region, APAC is expected to witness the highest growth over the forecast period.
Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.
Emerging Trends in the Automotive Hardware Market
Technological trends that focus on electric vehicles, automation, advanced materials, and sustainability are reshaping the automotive hardware market. The primary drivers are the increasing adoption of electric and autonomous vehicles, as well as the need for enhanced safety and connectivity features. These trends are forcing manufacturers to adapt and innovate their hardware solutions to meet the changing demands of consumers and regulators.
• Electric Vehicle (EV) Integration: Since the world is getting ready for EVs, automotive producers are increasingly focused on building advanced battery systems, electric drivetrains, and charging infrastructure. The global shift toward EVs not only changes the nature of automotive hardware but also fuels demand for such components: more range capabilities, faster charging times, and energy-efficient storage.
• Autonomous Vehicle Technologies: The automotive hardware market is being revolutionized by autonomous driving technologies, including sensors, cameras, radar, and LIDAR systems. These systems are crucial for the safe operation of self-driving vehicles. Hardware manufacturers continue to innovate to improve the performance, reliability, and affordability of autonomous vehicle components, thereby paving the way for widespread adoption.
• Smart and Connected Vehicles: The smart vehicles equipped with IoT technology are overhauling the automotive hardware. Connected vehicles also come with a new experience like real-time diagnostics, remote control, and personalized driver experience. Manufacturers focus on hardware that supports seamless connectivity such as sensors, communication systems, and data-processing units to enhance user experience and performance.
• Light Materials and Fuel Efficiency: In response to increasing the fuel efficiency of vehicles and lowering emissions, vehicle manufacturers are increasing the use of lightweight materials. Automotive hardware is made from carbon fiber, aluminum, and high-strength steel, thus reducing the weight of the vehicle without compromising safety and performance standards.
• Sustainability and Green Manufacturing: Sustainability is becoming the key focus in the automotive hardware market, with more efforts being made to reduce the environmental impact of manufacturing processes and products. Companies are adopting green materials, recycling strategies, and energy-efficient production techniques to meet stricter environmental regulations and consumer demand for eco-friendly vehicles.
Emerging trends such as electric vehicle integration, autonomous vehicle technologies, connected systems, lightweight materials, and sustainability are changing the automotive hardware market. As manufacturers align their strategies with these trends, the industry is set for a transformative shift, impacting the design, production, and functionality of automotive hardware components worldwide.
Recent Development in the Automotive Hardware Market
Technological advancements and changing consumer preferences have been major drivers of developments in the automotive hardware market. Electric and autonomous vehicles, new safety technologies, use of lightweight materials, and incorporation of smart systems are major development areas. The market is all the more transformed with new opportunities for manufacturers and consumers alike.
• Electric Vehicle Components: The growing demand for electric vehicles is forcing major developments in automotive hardware, especially in battery technology, charging infrastructure, and electric drivetrains. Manufacturers are working on increasing energy density, reducing charging time, and lowering the cost of EV components. These developments are driving the growth of the EV market and are expected to accelerate the transition to electric mobility.
• Autonomous Vehicle Hardware: As autonomous driving technologies gain more and more popularity, the hardware components, including sensors, cameras, radar, and LIDAR systems, are becoming increasingly sophisticated. These technologies are critical for enabling self-driving vehicles to navigate safely and efficiently. Manufacturers are investing in improving the reliability and accuracy of these systems to ensure the successful deployment of autonomous vehicles.
• Smart Vehicle Connectivity: As IoT and 5G technologies become prevalent, the hardware of automotive devices is also getting more connected. Infotainment systems have improved dramatically, remote diagnostics have been provided, and advanced driver assistance has also been integrated in the vehicle. The manufacturers are focusing on building hardware that ensures a seamless exchange between vehicles, infrastructure, and other devices for better experience and safety for users.
• Lightweight Materials for Fuel Efficiency: To meet the environmental regulations and consumer demand for fuel-efficient vehicles, automakers are increasingly opting for lightweight materials such as aluminum, carbon fiber, and high-strength steel. These materials make the vehicle lighter in weight, improving fuel efficiency and reducing emissions without compromising safety or performance. This trend is driving innovation in material science within the automotive hardware sector.
• Sustainable Manufacturing Practice: In response to climatic change and resources depletion, there is a drastic change in automotive industry manufacturing, adopting sustainable and environmentally friendly manufacturing practice. Eco-friendly materials, recycling strategies, energy-efficient processes are inculcating and are incorporated in reducing environmental effects, hence development of greener, more sustainable automotive hardware products.
The development of electric vehicle components, autonomous vehicle hardware, smart connectivity, lightweight materials, and sustainable manufacturing are changing the game in the automotive hardware market. All of these are being driven by the need for more efficient, safe, and environmentally friendly solutions in the automotive sector that meet consumer and regulatory demands, thereby driving innovation and improving performance.
Strategic Growth Opportunities in the Automotive Hardware Market
The automotive hardware market presents several growth opportunities across key applications, driven by technological advancements, regulatory changes, and evolving consumer preferences. Strategic opportunities exist in electric vehicle components, autonomous vehicle technologies, smart connectivity, lightweight materials, and sustainable manufacturing practices. These opportunities provide avenues for innovation and expansion in the rapidly changing automotive landscape.
• Electric Vehicle Market Growth: The adoption of electric vehicles will lead to growth in the electric drivetrain, battery systems, and charging infrastructure. As the demand for EVs grows, manufacturers will be able to focus on efficiency, range, and cost improvement in EV components, thereby creating a high-value market for innovative hardware solutions in the electric mobility sector.
• Autonomous Vehicle Systems: The opportunity for growth for the automotive hardware market is presented with the development of autonomous vehicles in the areas of sensors, cameras, and LIDAR systems. As this technology advances, there is a strong demand for high-performance, affordable autonomous driving hardware, and companies should focus on developing the next-generation components for self-driving vehicles.
• Connected Vehicle Technologies: The demand for advanced automotive hardware in enabling the integration of IoT, real-time communication, and data processing in the car is increasing with the increased connectivity of automobiles. This is an excellent opportunity for the manufacturers to develop smart hardware that increases connectivity and safety while driving and enhances driving experience. Further, integration of 5G and edge computing will also open up new growth opportunities.
• Lightweight Material Solutions: The trend towards fuel efficiency and reduced emissions is creating demand for lightweight materials in vehicle manufacturing. Car manufacturers are increasingly using materials such as carbon fiber, aluminum, and high-strength steel to reduce the weight of vehicles without compromising safety or performance. Manufacturers of lightweight materials and components have a great growth opportunity in this market.
• Sustainable Manufacturing: With sustainability now at the core of activities in the automobile industry, manufacturers can now have opportunities to create cleaner automotive equipment. This means recyclable materials, minimal waste generation, and energy efficiency during manufacture. Companies are going to take advantage of this by producing greener, more sustainable products to meet consumer demand for environmentally friendly vehicles.
Strategic growth opportunities exist across electric vehicles, autonomous vehicle systems, connected technologies, lightweight materials, and sustainable manufacturing in the automotive hardware market. Manufacturers that emphasize innovation and are aligned with the above trends will find themselves well positioned to thrive within the rapidly changing automotive landscape.
Automotive Hardware Market Driver and Challenges
The key drivers for the automotive hardware market include technological advancements, changes in regulations, and shifting demands from consumers in terms of electric vehicles, autonomous systems, and smarter, more sustainable products. Challenges such as high development costs, supply chain disruption, and regulatory compliance issues can cause a hindrance to growth in this sector.
The factors responsible for driving the automotive hardware market include:
1. Electric Vehicle Adoption: As the global shift toward electric vehicles accelerates, the demand for EV components such as batteries, drivetrains, and charging systems is rising. Manufacturers are responding by developing more efficient, cost-effective solutions that cater to the growing EV market.
2. Autonomous Driving Technology: The demand for autonomous driving technologies, with respect to hardware advancement, particularly sensors, cameras, and radar systems, is driving the demand for hardware. Technologies in autonomous driving are key to ensuring the safe operation of self-driving vehicles, so manufacturers have opportunities to innovate in this area.
3. Environmental Regulations: The tightening of environmental regulations is compelling automotive manufacturers to reduce emissions by seeking lighter-weight materials, powertrains, and green manufacturing practices. In all this, there would be an enormous growth in the automotive hardware market.
4. Consumer Demand for Smart Features: Growing demand for connected and smart vehicles is fueling automotive hardware solutions that include the features of vehicle-to-vehicle communication, real-time diagnostics, and more sophisticated driver assistance systems. These investments in the development of hardware support such features contribute to market growth.
Challenges in the automotive hardware market are:
1. High development costs: Development of new automotive hardware technologies, especially electric vehicles and autonomous systems, require massive investment in research and development. High development costs can limit manufacturersÄX%$%X ability to get new products into the market in a timely and cost-effective manner.
2. Supply Chain Disruptions: Automotive hardware is susceptible to disruptions in the supply chain, especially in critical components like semiconductors and batteries. Such supply chain disruptions result in production delays and can reduce the availability of automotive hardware in general.
3. Regulatory Compliance: Changing environmental and safety regulations can be a challenge for automotive hardware manufacturers. The compliance requirements are usually achieved through heavy investments in new technologies and processes, which increases the cost of production and complexity.
Technological advancement, adoption of electric vehicles, autonomous systems, and regulatory changes are driving growth in the automotive hardware market. Manufacturers need to overcome issues of high development costs, supply chain disruptions, and regulation issues to fully capitalize on opportunities brought about by these trends.
List of Automotive Hardware Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies automotive hardware companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the automotive hardware companies profiled in this report include-
• Kiekert
• Aisin Seiki
• Magna International
• Dorman Products
• Mitsui Mining and Smelting
Automotive Hardware Market by Segment
The study includes a forecast for the global automotive hardware market by type, application, and region.
Automotive Hardware Market by Type [Value from 2019 to 2031]:
• Door Latch
• Gas Springs
• Others
Automotive Hardware Market by Application [Value from 2019 to 2031]:
• Passengers Cars
• Trucks & Trailers
Automotive Hardware Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Automotive Hardware Market
Global regions are evolving rapidly in terms of automotive hardware because of technological advancement, increasing demand for electric vehicles (EVs), and changes in the manufacturing process. Innovations related to components, materials, and automation are reshaping the industry in the major markets, namely, the United States, China, Germany, India, and Japan, in which automobiles are designed, manufactured, and sold.
• United States: The U.S. automotive hardware market is largely impacted by the transition toward electric vehicles (EVs) and autonomous driving technologies. Important developments include the development of high-performance batteries, lightweight materials, and smart sensors. In addition, there is considerable emphasis on enhancing vehicle safety through hardware components, such as advanced driver-assistance systems (ADAS) and smart braking systems.
• China: China still holds the number one position in the world automotive hardware market with major improvements in electric vehicle production and infrastructure. The country focuses on developing more efficient batteries, improving electric drivetrain performance, and growing EV charging networks. Chinese auto manufacturers are making greater investments in smart vehicle technologies, including autonomous driving and IoT integration, and are striving for more innovative hardware in their vehicles.
• Germany: Germany is looking into technological innovations with electric mobility and autonomous cars in the country. Automotive hardware, on the whole, will be part of such innovation by GermanyÄX%$%Xs producers as they pour massive investments in sensor, motor, and advanced battery technologies. It also highlights more sustainable ways to produce and has also enhanced the implementation of lightweight material components to better their fuel economy while ensuring less emission of carbon.
• India: The growing demand for low-priced and fuel-efficient automobiles in India is giving a boost to the automotive hardware market. Local production of core parts like engines, transmissions, and braking systems in vehicles has gained importance. The domestic companies are also exploring possibilities for integrating electric vehicle components with hybrid technology to take advantage of the growing need for environment-friendly solutions.
• Japan: ItÄX%$%Xs the home for automotive hardware innovation, with respect to hybrid and electric vehicles. Powertrain technology and efficient battery systems and electric motors are advanced and developed in this country by automakers. Artificial intelligence (AI) and machine learning will be a feature of the manufacturing processes and improvement in vehicle performance within the Japanese automotive hardware industry.
Features of the Global Automotive Hardware Market
Market Size Estimates: Automotive hardware market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Automotive hardware market size by type, application, and region in terms of value ($B).
Regional Analysis: Automotive hardware market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the automotive hardware market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the automotive hardware market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for automotive hardware market?
Answer: The global automotive hardware market is expected to grow with a CAGR of 5.3% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the automotive hardware market?
Answer: The major drivers for this market are the increasing vehicle production, the rising demand for automotive components globally, and the growing vehicle maintenance services.
Q3. What are the major segments for automotive hardware market?
Answer: The future of the automotive hardware market looks promising with opportunities in the passengers car and truck & trailer markets.
Q4. Who are the key automotive hardware market companies?
Answer: Some of the key automotive hardware companies are as follows:
• Kiekert
• Aisin Seiki
• Magna International
• Dorman Products
• Mitsui Mining and Smelting
Q5. Which automotive hardware market segment will be the largest in future?
Answer: Lucintel forecasts that, door latch is expected to witness higher growth over the forecast period.
Q6. In automotive hardware market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the automotive hardware market by type (door latch, gas springs, and others), application (passengers cars and trucks & trailers), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Automotive Hardware Market, Automotive Hardware Market Size, Automotive Hardware Market Growth, Automotive Hardware Market Analysis, Automotive Hardware Market Report, Automotive Hardware Market Share, Automotive Hardware Market Trends, Automotive Hardware Market Forecast, Automotive Hardware Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.