Indian Automotive

Electronics Growth
Opportunities

S t rate g i c Pa r t n e rs h i p a n d
G o ve r n m e nt I n i t i at i ve s
B o o st F u t u r e G ro w t h
Po te nt i a l

Global Automotive &

Tr a n s p o r t a t i o n R e s e a r c h Te a m a t
Frost & Sullivan

PC0E-46
The Growth Pipeline™ Company
Powering clients towards a future shaped by growth September 2021
Contents

Section Slide Number

Strategic Imperatives 6
 Why Is It Increasingly Difficult to Grow? 7
 The Strategic Imperative 8™ 8
 The Impact of the Top Three Strategic Imperatives on the Automotive Electronics Market 9
 Growth Opportunities Fuel the Growth Pipeline Engine™ 10
Growth Environment 11
 List of Technologies Considered 12
 Growth of Automotive Electronics Sensor Technologies 13
 Establishing a Circular Value Chain 14
 Key Findings 15
Definitions 16
 List of Sensors and Actuators Considered 17
 Key Sensors and Applications 18
Technologies and Segment Scope 19
 Technologies and Segment Scope 20

PC0E-46 2
Contents (continued)

Section Slide Number

Design and Manufacturing Requirements 22
 Competencies Required for Automotive Electronics Design 23
 Competencies Required for Automotive Electronics Manufacturing 26
Growth Opportunity Analysis 27
 Growth Drivers 28
 Growth Restraints 29
Market Overview 30
 Automotive Electronics Growth due to Electrification 31
 Market Forecast—Short-term Automotive Electronics Technologies 32
 Market Forecast—Medium-term Automotive Electronics Technologies 33
Technology Overview 34
 Technology Development Complexity Vs Revenue 35
 Technology Development Effort Vs Revenue 36
Summary of Automotive Electronics Technologies 37
 Reverse Parking Guide 38
 In-car Entertainment System 39

PC0E-46 3
Contents (continued)

Section Slide Number

 Anti-lock Braking System 40
 Driver Information System 41
 Body Control Module 42
 Remote Keyless Entry and Immobilizers 43
 Passive Entry and Passive Start 44
 Electronic Stability Control 45
 Telematics 46
 Tire Pressure Monitoring System 47
 Airbag Electronics 48
 Fully Automatic Temperature Control 49
 Motor Controllers/Battery Management Systems 50
 Selective Catalytic Reduction 51
Forecast for Sensors and Actuators 52
 Sensors for Indian Suppliers to Consider 53
 Actuators for Indian Suppliers to Consider 54

PC0E-46 4
Contents (continued)

Section Slide Number

Recommendations for Stakeholders 55
 Framework for Automotive Electronics Manufacturing Ecosystem Development 56
 Recommendations for Government 57
 Recommendations for Value Chain Partners 59
 Recommendations for Industry Stakeholders 60
Growth Opportunity Universe 61
 Growth Opportunity 1—Transition toward Electrification 62
 Growth Opportunity 2—Customer Awareness Increases Adoption Rates 64
 Growth Opportunity 3—Health Wellness Well-being (HWW) Evolution in the Automotive
66
Industry
Next Steps 68
 Your Next Steps 69
 Why Frost, Why Now? 70
 List of Exhibits 71
 Legal Disclaimer 74

PC0E-46 5
Strategic Imperatives

PC0E-46 6
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™: Factors Creating Pressure on Growth

Source: Frost & Sullivan

PC0E-46 7
The Strategic Imperative 8™
Innovative Business
Models
A new revenue model that
defines how a company
creates and capitalizes
economic value, typically
impacting its value
proposition, product offering,
operational strategies, and
brand positioning
Competitive Intensity
A new wave of competition
from start-ups and digital
business models that
challenge the standing
conventions of the past,
compelling established
industries to re-think their
competitive stance
Customer Value Chain
Compression
Customer value chain
compression as a result of
advanced technologies,
internet platforms, and other
direct-to-consumer models
that enables reduction in
friction and the number of
steps in customer journeys
Geopolitical Chaos
Chaos and disorder arising
from political discord, natural
calamities, pandemics, and
social unrest that impact
global trade, collaboration,
and business security
Transformative Mega
Trends
Global forces that define the
future world with their far-
reaching impact on business,
societies, economies, cultures,
and personal lives
Disruptive Technologies
New, disruptive technologies
that are displacing the old, and
significantly altering the way
consumers, industries, or
businesses operate
Internal Challenges
The internal organizational
behaviors that prevent a
company from making
required changes
Industry Convergence
Collaboration between
previously disparate industries
to deliver on whitespace
cross-industry growth
opportunities
Source: Frost & Sullivan
PC0E-46 8
 The Impact of the Top Three Strategic Imperatives on the Automotive
Electronics Market
SI8

Innovative Business Models Disruptive Technologies Transformative Mega Trends

• Circular value chain established through

• Disruptive technologies that support the shift • Megatrends such as e-mobility, e-retail, and
stakeholder partnerships such as government
toward connected, autonomous, and electric service marketplaces will influence
authorities, original equipment manufacturers
vehicles (EVs), along with customer-centric automotive electronics and aftermarket.
Why

(OEMs), component manufacturers, recycling

parameters such as user experience and Manufacturers should adopt an agile and
and collection services, disposal, and
infotainment, are expected to play a major role responsive strategy to retain their market
remanufacturing partners will increase
in boosting automotive electronics demand. position.
consumption sustainability and efficiency.

• Frost & Sullivan projects the market will adopt

Frost Perspective

• The circular value chain is critical to driving
business efficiencies in the next five to 10 years,
when the electric and autonomous vehicle
penetration will drive the demand for global
automotive electronics.
readily available short and medium-term
electronics technologies in three to five years.
• However, long-term technologies such as remote
diagnostic systems and autonomous driving are
still under development.
• Currently, India imports about 65%–70% of
auto electronic components. The government
and industry need to intensify efforts to
reverse this scenario to meet growing
demand in the next five years.

Source: Frost & Sullivan

PC0E-46 9
Growth Opportunities Fuel the Growth Pipeline Engine™

The Innovation Generator™ The Growth Pipeline Engine™

Perspectives
Analytical

Source: Frost & Sullivan

PC0E-46 10
Growth Environment

PC0E-46 11
List of Technologies Considered
Automotive Electronics Market: Short, Medium and Long-term Technologies, India, 2020–2025
Short-term Technologies
(technologies readily available
and could be implemented in
1– 3yrs)
• Reverse parking guide (RPG)
• In-car entertainment (ICE)
system
• Anti-lock braking system
(ABS)
• Driver information system
(DIS)
• Body control module (BCM)
• Remote keyless entry (RKE)
and immobilizers
• Passive entry and passive
start (PEPS)
• Electronic stability control
(ESC)
Medium-term
Technologies
(technologies available and
could be implemented
in 3–5 yrs)
• Telematics
• Tire pressure monitoring
system (TPMS)
• Airbag electronics
• Fully automatic
temperature control (FATC)
• Motor controllers/Battery
management systems
(BMS)
• Selective catalytic
reduction (SCR)
Long-term Technologies
(technologies under
development, >5 years)
• Intelligent transport
system (ITS)
• Electric and hybrid
vehicles (EV/HEV)
• Remote vehicle diagnostic
(RVD) system
• Adaptive front lighting
system (AFLS)
• Advanced driver-
assistance systems (ADAS)
Source: Frost & Sullivan
PC0E-46 12
Growth of Automotive Electronics Sensor Technologies
The short and medium-term opportunities available in automotive sensor technologies is $5,424.7 million by 2025.
Automotive Electronics Market: Market Opportunity for Sensors, India, 2020–2025

Short Term (1–3 years) Medium Term (3–5 years)

$3,534.3 Million $1,890.4 Million

Technologies to focus on: Technologies to focus on:

Total addressable
market
ABS, BCM, and immobilizer Telematics, TPMS, and electric
power steering (EPS)

• Sensors: Ultrasonic, hall • Mechatronics

effect, piezoelectric • Oxygen sensors
Market focus areas to
realize opportunities • Small control units and • Complex electronic control
printed circuit board (PCB) units (ECUs )and integration
assemblies
• In-vehicle networking
• Displays

Note: The currency exchange rate throughout the report is applicable on August 24, 2021, available on
https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=INR Source: Frost & Sullivan

PC0E-46 13
Establishing a Circular Value Chain
A new vision for the production and consumption of electronic and electrical goods is necessary for the country.

Component Repair, Second Life,

Scrappage Policy
Reintegration of manufacturing
scrap metal from production to
reintroduction in new components
Design
and Durability
Manufacturing Products last longer and have a
second or third life, backed by
modern refurbishment and repair
facilities and competitive second-

Usage
Items designed for durability, reuse, hand markets. Some products go
and safe recycling; substances of on sale as a service
concern replaced Electronic
Component
Value Chain
Sourcing

Recycling
Enhanced recycling and reuse
strategies to promote recycling
and the incorporation of recycled End-of-Life Application
material into new items; high-tech Higher collection of end-of-life
recycling removes a wide range of electronics. Formalized workers
products and preserves them to End of Life are collecting old products in
the highest quality. All e-waste to developing countries
be handled via the formal sector

Source: Frost & Sullivan

PC0E-46 14
Key Findings
The opportunity for suppliers in the Indian automotive electronics market—short, medium-term technologies, and
sensors and actuators—is about $9,214.7 million by 2025.
Technologies
• Short-term technologies with
growth potential: ABS, BCM, RKE,
DIS, PEPS, and immobilizers
• Medium-term technologies for
investment: Telematics, TPMS,
and motor controllers/BMS
• Sensors stakeholders need to
focus on: Parking, cam, crank, and
temperature manifold absolute
pressure sensor (TMAP)
Addressable Market by 2025
• About $3,534.3 million, offering
suppliers low-hanging
opportunities with minimal
technological investments
• About $1,890.4 million, driven by
growing consumer demands for
comfort and regulatory updates
• About $3,790.1 million, revolving
mainly around technological
advancements; modern vehicles
will likely install several actuators
to improve vehicle safety and
comfort
Industry Roadmap
1–2 Years
Focus on manufacturing:
• Compact display units
• Sensors—Ultrasonic, hall effect,
piezoelectric
• Small control units and PCB
assemblies
3 –5 Years
Developmental focus on:
• Mechatronics capabilities
• Manufacturing TPMS sensors
• In-vehicle networking capabilities
• Advanced ECUs
• Low-frequency antenna
Source: Frost & Sullivan
PC0E-46 15
Definitions

PC0E-46 16
List of Sensors and Actuators Considered
Automotive Electronics Market: Sensors and Actuators, India, 2020–2025
Sensors
• Crank position sensor
• Cam sensor
• Coolant temp sensor
• Accelerator pedal sensor (APS)/
throttle position sensor (TPS)
• Manifold absolute pressure (MAP)
• Air mass flow/ Hot film air mass
(HFM)
• Vehicle speed sensor
• Oxygen/Lambda sensor
• Parking sensor
• TPMS sensor
• Fuel-level sensor
• Ambient temperature sensor
Actuators
• Starter solenoid switch
• Automated manual
transmission (AMT)
solenoid
• Wastegate actuators
• Idle air control valve
• Canister purge solenoid
• Exhaust gas recirculation
(EGR) valve
• Power steering motors
• Power sunroof
• Light-emitting diode (LED)
headlamps cooling fans
• Engine cooling fan
• Electrical fuel pump
• Windshield wipers and
washers
• Power door locks
• Heating, ventilation, and
air conditioning (HVAC)
blower
• Power windows
• Variable valve timing
actuation
• Electronic throttle control
• Dashboard gauges drivers
• Idle speed controller
• Self-adjusting mirrors
• Fuel injectors
Source: Frost & Sullivan
PC0E-46 17
Key Sensors and Applications
Automotive Electronics Market: Key Sensors and Applications, India, 2020–2025

Electronic device in an internal combustion (IC) engine that measures the

Crank position sensor
Cam sensor
Coolant temperature sensors
crankshaft’s position or the rotational speed
Monitors the relationship between pistons and valves in the engine; particularly
important in engines with variable valve timing
Measures coolant temperature

Determines the accelerator pedal position and generates the corresponding pedal
APS/TPS
characteristics

Intake MAP and temperature sensing in IC engines operating with different fuel
MAP
types and grades

Air mass flow/HFM Tells the ECU the air mass entering the engine
Vehicle speed sensor (VSS) Detects vehicle speed
Oxygen/Lambda sensor Monitors oxygen amount in the exhaust
Parking sensor Alerts the driver of unseen obstacles during parking maneuvers
TPMS sensor Monitors air pressure inside tires
Fuel-level sensor Informs about the fluid amount in a vehicle
Negative temperature coefficient (NTC) sensor that informs the
Ambient temperature sensor
semiautomatic/automatic temperature control system of outside air temperature
Source: Frost & Sullivan

PC0E-46 18
Technologies and Segment Scope

PC0E-46 19
Technologies and Segment Scope
Technology development in the passenger vehicle category will drive the overall automotive electronics market.
Automotive Electronics Market: Technologies and Segment Scope, Global, 2020–2025

2W PV CV

Reverse Parking Guide (RPG)

In-car Entertainment (ICE) System

Anti-lock Braking System (ABS)

Driver Information System (DIS)

Body Control Module (BCM)

Key Technologies

Remote Keyless Entry (RKE) and Immobilizers

Telematics

Tire Pressure Monitoring System (TPMS)

Airbag Electronics

Adaptive Front Lighting System (AFLS)

Note: Two Wheeler (2W); Passenger Vehicle (PV); Commercial Vehicle (CV) Legend: Includes 2W, PV, and CV Only two categories Source: Frost & Sullivan

PC0E-46 20
Technologies and Segment Scope (continued)
ADAS technologies are vital for autonomous driving and the current focus area for all global suppliers.

2W PV CV
Passive Entry and Passive Start (PEPS)

Fully Automatic Temperature Control (FATC)

Motor Controllers/Battery Management

Systems (BMS)

Remote Vehicle Diagnostic (RVD) System

Key Technologies

Electronic Stability
Control (ESC)

Advance Driver Assistance Systems (ADAS)

Selective Catalytic Reduction (SCR)

Legend: Includes 2W, PV, and CV Only two categories Source: Frost & Sullivan

PC0E-46 21
Design and Manufacturing Requirements

PC0E-46 22
 Competencies Required for Automotive Electronics Design
Hardware design integration with software, in-vehicle networking, and Simulink tools for designing and simulating
interfacing systems are the major capabilities that Indian suppliers require.
Automotive Electronics Market: Competences for Electronics Design, India, 2020–2025

Hardware design and testing methods

and integration with the software Software life cycle process including
specification, design, implementation,
change control, and testing

In-vehicle networking—implementing
and testing CAN/LIN/FlexRay/MOST Proficiency in using LabVIEW and
network MATLAB, Simulink tools for designing
and simulating interfacing systems

Verification of analog, radio frequency

(RF), communication, digital or control
electronic circuits, subsystems and
systems (e.g., hardware, software,
hybrid); applications development
(software, security, and programming)
Microcontroller-based embedded
controller systems in the automotive
control field

Note: Campus Area Network (CAN); Local Interconnect Network(LIN); Media Oriented System Transport (MOST) Source: Frost & Sullivan

PC0E-46 23
 Competencies Required for Automotive Electronics Design (continued)
Indian suppliers require knowledge of PCB design and EMI/EMC/ESD-related designing concepts.

Analog and digital interfaces for

sensors/actuators and other external Real-time control concepts a reference
devices model architecture, suitable for many
software-intensive, real-time control
problem domains

EMI/EMC/ESD-related design concepts

to meet regulatory and safety PCB design techniques for ease of
requirements manufacturing and automated
assemblies

Human system integration—HMI/GUI

to allow the use of user-friendly icons Image processing to produce or
or other visual indicators to interact improve images for human visual
with electronic devices perception and autonomous machine
perception

Note: Electromagnetic Interference (EMI); Electromagnetic Compatibility (EMC);

Electrostatic Discharge (ESD); Human-Machine Interface (HMI); Graphical User Interface (GUI) Source: Frost & Sullivan

PC0E-46 24
 Competencies Required for Automotive Electronics Design (continued)
Indian suppliers need knowledge of existing design and testing standards such as ISO 26262, IEEE, and SAE.

Sensors and interfacing

Cybersecurity of automotive electronic
control systems

Environmental factors and protection

Existing relevant design and testing
standards (e.g., SAE, ISO, IEEE)

Vehicle systems engineering, including

how to use combinations of
electronics and mechanical design to
jointly achieve safety objectives Vehicle design and testing methods

Note: International Organization for Standardization (ISO); Institute of Electrical and Electronics Engineers (IEEE); Society of Automotive Engineers (SAE) Source: Frost & Sullivan

PC0E-46 25
Competencies Required for Automotive Electronics Manufacturing
Indian suppliers must understand the manufacturing and testing techniques of automotive electronics components.

PCB manufacturing techniques

Surface mount technology (SMT)-based automated production lines

ESD precautions in handling electronic components

In-circuit testing techniques

Programmable logic controllers (PLC)-based automated techniques

Source: Frost & Sullivan

PC0E-46 26
Growth Opportunity Analysis

PC0E-46 27
Growth Drivers

Automotive Electronics Market: Growth Drivers, India, 2021–2025

Driver 1–2 Years 3–4 Years 5th Year

Automotive electronics development directly relates to
automotive innovations in creating solutions that increase
safety, fuel efficiency, customer comfort, infotainment, and High High High
associated applications. This drives demand for electronic
components and subsystems.

Electronics advancement for different vehicle components

such as body, powertrain and chassis, and safety systems will Medium High High
require additional electronic control and communication units.

Regulating active safety features like dual airbags, ESC, and

Low Medium High
TPMS will boost India's demand for automotive electronics.

Government norms on emissions and the shift toward EVs

propel requirements for automotive electronics components Low Medium Medium
and present massive market opportunities in India.

Source: Frost & Sullivan

PC0E-46 28
Growth Restraints

Automotive Electronics Market: Growth Restraints, India, 2021–2025

Restraint 1–2 Years 3–4 Years 5th Year

Advanced technologies’ implementation costs are high due to

costs associated with different value chain stages and
High High High
demographic factors. Additional charges will lower demand in
price-sensitive markets like India.

Government incentives for manufacturing, distribution, and

export must be favorable for establishing a robust electronics Low Medium Medium
ecosystem.

Manufacturers provide many safety features such as blind spot

monitor, rear sear belt reminder, and brake assistance as
premium features in top-end models. Adoption in lower-end Low Low Low
models remains nascent owing to factors like cost, availability,
and demand.

Source: Frost & Sullivan

PC0E-46 29
Market Overview

PC0E-46 30
 Automotive Electronics Growth due to Electrification
Electrification will penetrate cars and last-mile connectivity modes like 2W by 2030. Frost & Sullivan expects more
electrification in the fleet segment due to a combination of lower ownership costs and regulatory intervention.
Automotive Electronics Market: Electrification of Vehicles, India, 2030

2W Buses 4W Trucks

New
Vehicle
Adoption Fleet 70% 20%–30% 40% 15%–20%
Rate
Private 30% 15%–20%

• Buses: Initial transit will be observed in fixed distance modes; corporate, school, and college fleets;
and intra-city bus services with battery swapping
• 2W and cars: Use cases in the fleet will be higher than personal use owing to demand from
aggregators and other light companies

Note: Four wheeler (4W) Source: Frost & Sullivan

PC0E-46 31
Market Forecast—Short-term Automotive Electronics Technologies
Total opportunity for short-term technologies by 2025 is about $3,534.3 million.

Automotive Electronics Market: Forecast for Short-term Technologies, India, 2020–2025

120.0

ESC 278.9
100.0
CAGR (%), 2020–2025

80.0

60.0

40.0 PEPS 467.8

RKE 202.1 ABS

20.0 DIS 176.7
RPG 147.8 1,491.6
ICE 458.2 BCM 311.1
0.0
0.0 5.0 10.0 15.0 20.0 25.0

Volume in 2025 (Thousands)

Size = Technology Potential (Revenue) in $ M in 2025
Note: Potential represents summation of all vehicle categories. Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 32
Market Forecast—Medium-term Automotive Electronics Technologies
Total opportunity for medium-term technologies by 2025 is approximately $1,890.4 million.

Automotive Electronics Market: Forecast for Medium-term Technologies, India, 2020–2025

140.0 Motor Controllers/

BMS
120.0 65.6
TPMS
100.0
CAGR (%), 2020–2025

445.4
80.0
Telematics
60.0
332.7
FATC
40.0 228.5
SCR
20.0
346.3 Airbag
Electronics
0.0 472.0

(20.0)
0.0 1.0 2.0 3.0 4.0 5.0

Volume in 2025 (Thousands)

Size = Technology Potential (Revenue) in $ M in 2025
Note: Potential represents summation of all vehicle categories. Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 33
Technology Overview

PC0E-46 34
Technology Development Complexity Vs Revenue
Small and mid-level suppliers will target low and medium-complexity technologies with a revenue potential of about
$3,461.1 million by FY2025.
Automotive Electronics Market: Technology Development Complexity vs Revenue, India, 2025

3.00 Airbag electronics

Technology Development Complexity (on a 1–3 scale)

FATC ABS
SCR
2.50 DIS
ESC
TPMS Large suppliers to
BMS
2.00 Mid-level suppliers to target focus on high-
BCM ICE
medium-complexity complexity
Telematics technologies technologies
1.50
RPG
PEPS
1.00 RKE

Small suppliers to
0.50 immediately target low-
complexity technologies

0.00
0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0

Revenue by FY2025 ($ M)

Frost & Sullivan calculated the technology development complexity by studying manufacturing and design
complexity.
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 35
Technology Development Effort Vs Revenue
TPMS, PEPS, RPG, BMS, RKE and immobilizers with a revenue potential of approximately $1,328.7 million FY2025 are the
low-hanging fruits for Indian suppliers in terms of lower technology development efforts.
Automotive Electronics Market: Technology Development Effort vs Revenue, India, 2025
10
Large suppliers should focus on
9 Airbag electronics this by getting into technological
Technology Development Effort (on a 1–10 scale)

partnerships
8

7
Focus areas for Tier
6
1 suppliers
FATC
5 ABS
ESC
DIS
4 SCR
BCM ICE
3
Telematics TPMS
BMS
2
RKE PEPS
1
RPG
0
0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 1,600.0
Revenue by FY2025 ($ M)

Frost & Sullivan calculated the technology development effort by considering technology development complexity
and the investment required*.
* Calculated on a 1–10 scale Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 36
Summary of Automotive Electronics
Technologies

PC0E-46 37
 Short-term Technology

Reverse Parking Guide

Rising demand for parking assistance drives the RPG market, forecast to grow from $71.9 million to $147.8 million at a
15.5% CAGR over the next five years.
RPG helps the driver sense when objects are in the vehicle's blind spot through an audio warning or a visual display. In basic systems, sensors mounted on the
bumper detect obstacles’ distance from the car’s extremities and give an audible beep depending on the distance. A step up, a rear-facing camera with a wide-
angle lens, mounted high and pointing slightly downward, provides a broad field-of-view around the back of the car.

Major Components and Share by Value: Ultrasonic Sensors: 20.0% Controllers: 20.0% Displays: 35.0% Cameras: 25.0%

Current Market and Forecast Market Trends Key Players

RPG: Revenue Forecast by Category, India, • Capacitor coupled devices (CCD) camera preferred for PV applications • Interface
2020 and 2025
• Bumper-mounted, water-resistant, and vibration-resistant sensors used for PV applications Microsystems
120.0 104.9
• Controllers suitable for mounting on the body • Autocop
($ Million)

70.7
Revenue

80.0 42.9 • Integrated controllers and buzzers used for sensors • Xenos
40.0 1.2 • Colored liquid crystal displays (LCDs) with mirror finish used as a part of the rearview mirror Technologies
0.0
2020 2025 for camera-based RPG • Pricol
PV Category CV Category • LEDs displaying distance used for ultrasonic-based RPG

Component suppliers OEMs and system suppliers End Users/

System suppliers Customers
Sub assemblies (e.g., ultrasonic Integration/Aftermarket fitment
Value sensors, camera, displays, and of the system on vehicles Increased
Chain Complete systems
controllers) convenience
Developing and Installation and performance
Local procurement and assemblies procuring set of parts check

Opportunity Analysis and Recommendations Technology Evolution

Short Term Medium Term Long Term Ultrasonic

• Manufacture ultrasonic sensor- • Develop integrated solutions with a • Build expertise on park assist and
Camera
based RPG for aftermarket/OEMs camera, ultrasonic sensors, and automated parking system
LCDs integrated into the rearview development
• Develop displays for the RPG Park assist
camera
Automated parking

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 38
 Short-term Technology

In-car Entertainment System

Increasing demand for comfort and convenience drives ICE systems growth, expected to rise from $232.1 million to
$458.2 million at a 14.6% CAGR over the next five years.
The ICE system refers to integrated infotainment systems in automobiles that deliver entertainment and information. Typical tasks that drivers can perform with
an in-car entertainment system include managing and playing audio content, utilizing navigation for driving, and providing rear-seat entertainment such as
movies, games, and social networking.

Major Components and Share by Value: Car Radio/Head Unit: 60.0% Speakers: 40.0%

Current Market and Forecast Market Trends Key Players

ICE System: Revenue Forecast by Category, • Integrated head units for PV applications expected to grow • Nippon Audiotronix Ltd
India, 2020 and 2025 •
Revenue ($ Million)

Blaupunkt
600.0 • Trend for CV shifting from standalone units to integrated units
419.5 • Alpine
400.0
223.4 • ICE systems with a touchscreen and additional features such as navigation • Pioneer
200.0 8.7 38.7
0.0
increasingly used in high-end vehicles • Harman
2020 2025 • Visteon
PV Category CV Category

Component suppliers System suppliers OEMs and system suppliers End users/
Customers
Semiconductor components, System integration on vehicles
Value PCBs, electro mechanicals,
Completely knocked down
assembly and validation Increased
Chain passive components comfort and
Developing systems as per Installation, validation, and convenience
Import specifications (specs) testing

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Design and develop single/double din audio
systems for low-end vehicles
• Integrate Bluetooth connectivity and steering-
mounted controls into the ICE system
• Develop systems integrated with dashboards
in consultation with OEMs for improved
aesthetics and haptic
• Build expertise for improved vehicle
acoustics
• Build expertise for integrated stylized touchscreen
ICE system with connectivity and navigation
features
• Build expertise to integrate various operating
systems such as Android and IOS in displays

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 39
 Short-term Technology

Anti-lock Braking System

Government mandate on ABS for the PV, CV, and 2W segments will drive the ABS market, projected to grow from
$794.0 million to $1,491.6 million at a 13.4% CAGR over the next five years.

ABS is an automobile safety system that restores traction to tires and prevents wheels from locking up while braking.

Major Components and Share by Value: ECU: 40.0% Wheel Speed Sensors: 30.0% Modulator Unit (Hydraulic/Pneumatic): 30.0%

Current Market and Forecast Market Trends Key Players

ABS: Revenue Forecast by Category, India, • Body-mounted ECUs and hydraulic modulator units used for PV applications • Bosch
Revenue ($ Million)

2020 and 2025 932.5

1,000.0
• Chassis-mounted ECUs used for CV applications • Continental
800.0
600.0 375.9
• WABCO
400.0
291.9 419.5 • Hydraulic units and pneumatic modulator units used for low-tonnage and
126.2 139.6
200.0 high-tonnage CV applications, respectively
0.0
2020 2025 • Contactless/Hall effect sensors expected to grow soon
PV Category CV Category 2W Category

Subassembly suppliers OEMs and system End users/

System suppliers
suppliers Customers

Value Subassemblies (e.g.,

ECUs, modulators, Complete system System integration on Increased
Chain sensors) vehicles safety
Importing/Assembling Developing assemblies as per
specs Installation, validation,
subassemblies and testing

Opportunity Analysis and Recommendations Technology Evolution

Short Term Medium Term Long Term ABS
• Build expertise to manufacture wheel • Enhance capabilities/capacities to • Design and develop body- and
speed sensor design and manufacture modulator chassis-mounted ECUs by forming
valves technological partnerships with Traction control system
• Manufacture contactless sensors
established players
• Develop capabilities to integrate
• Set up PCB manufacturing/assembly
modulator valves with ECUs Electronic stability program
facilities
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 40
 Short-term Technology

Driver Information System

The increasing HMI leads to the DIS market growth, forecast to rise from $89.8 million to $176.7 million at a 14.5% CAGR
over the next five years.

The DIS display brings together various information items in the cockpit center and permanently indicates the vehicle’s current operating status. It is intuitively
laid out, user-friendly, and allows the driver to stay focused on the road.

Major Components and Share by Value: Instrument Clusters: 60.0% Displays: 40.0%

Current Market and Forecast Market Trends Key Players

DIS: Revenue Forecast by Category, • Instrument clusters with 3D dials preferred • Magneti Marelli
India, 2020 and 2025 • Visteon
Revenue ($ Million)

200.0 157.3 • Stepper motor-driven clusters are being used predominantly • Varroc
100.0
89.3 • Increasing penetration of digital instrument clusters • Denso
0.4 19.3 • Continental
0.0
• Increased number of telltales • Delphi
2020 2025 • Thin film transistor (TFT), colored LCD, and integrated displays • JNS Instruments
PV Category CV Category

Component suppliers System suppliers OEMs and system End users/

suppliers Customers
Value Peripherals/Housing/Lens and Assembly and validation: System integration on
PCB assembly Peripherals, PCB assembly Increased
Chain vehicles
convenience
software
Installation, validation,
Manufacturing Developing systems as per specs and testing

Opportunity Analysis and Recommendations Technology Evolution

Short Term Medium Term Long Term
• Develop digital instrument clusters for the • Enhance capabilities and capacities • Focus on full TFT/reconfigurable Current clusters
2W and 3W vehicle segments for stepper motor-driven clusters clusters by forming technology (analog, digital, hybrid)
• Develop stylized clusters with aesthetic across all vehicle segments partnerships/joint ventures (JV)
appeal • Develop expertise to improve with established participants Reconfigurable clusters
• Build expertise to develop integrated clusters protection levels to IP65 and above • Build head up displays (HuD)
capable of displaying various vehicle development capabilities for
parameters such as fuel efficiency, • Develop CAN-compatible clusters for HuD
high-end vehicles high-end vehicles
diagnostics, and engine running conditions
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 41
 Short-term Technology

Body Control Module

Rising demand for in-vehicle communication systems, infotainment and safety features, and comfort is forecast to
increase the BCM market from $174.3 million to $311.1 million at a 12.3% CAGR over the next five years.

BCM is an electronic control unit that monitors and controls various electronic accessories in a vehicle's body. The BCM communicates with other onboard computers via the
car's vehicle bus and control load drivers, actuating relays that perform actions in the vehicle such as operating power windows and mirrors and central locking.

Current Market and Forecast Market Trends Key Players

BCM: Revenue Forecast by Category, • Growing options and utilities allows more control functions in a BCM, pushing OEMs to • Continental
India, 2020 and 2025
Revenue ($ Million)

increase functionality constantly • Delphi

300.0 236.0 • Bosch
167.5 • Although there is a high level of local value addition in product manufacturing, there is
200.0
75.2 • Magneti Marelli
100.0 much import dependence for components
6.8
0.0
2020 2025
PV Category CV Category

Subcomponent manufacturers OEMs and system suppliers

System suppliers

Value Subassemblies (e.g., PCBs, System integration on vehicles

Chain microcontrollers, ICs) Complete systems

Importing Developing assemblies as per specs Installation, validation, and testing

Opportunity Analysis and Recommendations Technology Evolution

Short Term Medium Term Long Term Entry-level BCMs

• Develop BCMs to replace individual • Enhance existing capabilities of BCM • Develop modular BCMs for platform-
controllers for low-end cars designing for high-end cars based approach to reduce cost and lead
High-end BCMs
time
• Design and develop BCMs indigenously • Develop BCMs with gateway and
for mid-segment cars networking functionalities • Develop BCMs suitable for chassis
mounting for the CV segment Central gateway and
In-vehicle networking

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 42
 Short-term Technology

Remote Keyless Entry and Immobilizers

Government mandate on immobilizers will drive the immobilizer market, expected to grow from $76.2 million to
$202.1 million at a 21.5% CAGR over the next five years.
RKE is a keyless or remote central locking device. This lock uses an electronic remote control key triggered by a handheld device or automatically activated by
proximity.
An immobilizer is an electronic security component fitted to a vehicle that prevents the engine from running unless the correct key is used to start the vehicle.

Current Market and Forecast Market Trends Key Players

RKE: Revenue Forecast by • RF-based immobilizers predominantly fitted in all low-end cars • Delphi
Revenue ($ Million)

Category, India, 2020 and 2025

200.0 155.4 • Continental
• Immobilizers for certain high-end vehicles imported from countries like
150.0 • Minda Valeo
100.0 74.5 Taiwan, Korea, and Japan
36.2 • Jay Ushin
50.0 1.7 - 10.5
0.0 • Omron
2020 2025
PV Category CV Category 2W Category

Component suppliers OEMs and system suppliers End users/

System suppliers
customers
Components (e.g., immobilizer System integration on vehicles,
Value control unit, key fob, antenna, Complete systems including ignition control unit (ICU) Increased
Chain transponder) communication with the EMS ECU security
Developing assemblies as per
Manufacturing and assembly specs Installation, validation, and testing

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term
• Develop capacities for RF-based immobilizer for • Develop transponder-based immobilizers with • Develop expertise on immobilizer control unit
the PV and small CV segments with basic fuel integrated antennas and control units integration in the BCM
cut-off and starter relay cut-off system;
• Focus on system integration of the immobilizer • Develop capabilities for interfacing Immobilizer
regulation to mandate immobilizers expected
control unit with the engine management functions in the EMS ECU with encrypted signals
• Focus on RKE integration with the immobilizer system (EMS) ECU and the vehicle alarm system to enhance vehicle security level (Thatcham
rating)

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 43
 Short-term Technology

Passive Entry and Passive Start

Growing consumer demands for security and vehicle personalization drive the PEPS market, forecast to increase from
$134.0 million to $467.8 million at a 28.4% CAGR over the next five years.

PEPS system allows the driver to unlock the car and start the engine without physically inserting the key. It uses RF signals for secure wireless communication.

Current Market and Forecast Market Trends Key Players

PEPS: Revenue Forecast by Category, • Increasing competition for connected vehicle features and mobile • Alps Electric Co. Ltd
India, 2020 and 2025 •
Revenue ($ Million)

500.0
connectivity prompts sellers to introduce innovative and optimized Continental Automotive GmbH
458.4
400.0 electronic PEPS solutions in the market • Delphi Automotive
300.0
200.0 134.0 • Denso Corporation
100.0 9.4 • Growing global automotive safety regulation policies have
0.0 • Hyundai Mobis Co. Ltd
expanded the sales of luxury cars mainly fitted with PEPS
2020 2025 • TRW Automotive Hold. Corp
PV Category 2W Category

Component suppliers OEMs and system suppliers End users/

System suppliers customers
Value Components System integration on vehicles
Chain
Complete systems Installation, validation, and Increased
Imports/Manufacturing/
Assembly testing security
Developing systems

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Manufacture low-frequency antenna and base • Integrate necessary systems such as remote air • Develop capabilities to integrate biometric
station units conditioning (AC) switch on and voice command identification to replace keyless entry systems
• Develop new key systems such as wearable • Develop mobile applications to store encrypted
bands and other accessories keys for easy transfer between different users;
highly demanded in mobility-as-a-service (MaaS)

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 44
 Short-term Technology

Electronic Stability Control

Growing ESC penetration in the passenger car segment is forecast to drive the EPS market from $7.6 million to
$278.9 million at a 105.7% CAGR over the next five years.

ESC is a computerized technology that detects and reduces traction losses to enhance vehicle stability.

Current Market and Forecast Market Trends Key Players

ESC: Revenue Forecast by Category, • Most luxury car models come fitted with ESC systems as a standard; • Autoliv • ZF
Revenue ($ Million)

India, 2020 and 2025 semi-luxury vehicles expected to adopt the same gradually • Bosch • Wabco
200.0 153.4
150.0 125.5 • Continental Ag
100.0 • OEMs import or supply all sensors, ECUs, and actuators to Tier 1 suppliers
50.0 7.6 for assembly • Delphi Automotive
-
0.0 • Johnson Electric
2020 2025 • Legislation tightening to make ESC compulsory in both PVs and CVs
PV Category CV Category anticipated worldwide

Component suppliers OEMs and system End users/

System suppliers suppliers customers
Value Components (e.g., reduction gears, System integration
Chain motors, steering, torque and speed on vehicles
Complete systems Increased
sensors)
Installation, validation, vehicle safety
Imports/Manufacturing/Assembly Developing systems and testing and comfort

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Focus on technical tie-ups to manufacture EPS • Build expertise to manufacture sensors for EPS • Capability building toward understanding ECU
actuator, which is a bidirectional brushless applications specifications for ESC systems
motor o Wheel speed sensors • Build expertise to integrate sensors efficiently
• Manufacture reduction gears; not all reduction o Steering angle sensors with the system
gears are domestically manufactured
o Acceleration sensors

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 45
 Medium-term Technology

Telematics
Increasing telematics applications in the CV category is forecast to drive the telematics market from $48.7 million to
$332.7 million at a 46.9% CAGR over the next five years.

Telematics describes the communication services within or from a vehicle to other communication devices through GPS-enabled or other telematics devices.

Major Components and Share by Value: Telematics Box: 70.0% Service Packages: 30.0%

Current Market and Forecast Market Trends Key Players

Telematics: Revenue Forecast by Category, India, • Telematics boxes generally imported or assembled with GPS and Global System for • Bosch
Revenue ($ Million)

2020 and 2025

200.0
157.3 Mobile (GSM) modules • Pricol
150.0
100.0
82.1 93.2
• Over 85% of telematics boxes used as major components in GPS and GSM modules • Magneti Marelli
41.3
50.0 - imported from other countries like Thailand and China • Trimble
7.4
0.0 • Continental
• Many local players assemble telematics boxes after importing major components • WABCO
2020 2025
PV Category CV Category 2W Category

Value Content Application Content Network Telematics Access

Chain creation development aggregation transport unit interface

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Focus on telematics box assembly • Tie up with small software companies in
• All components widely available in the import market the service business and develop unique
products specific to the Indian market,
• Focus on 3G/4G communication protocols as this is the such as fuel pilferage and driver behavior
way forward for the industry monitoring
• Tie up with telecommunications operators and
become one-stop-shop solution providers for
telematics and be present across the value chain
• Focus on innovative business models for various
fleet operators based on end-user requirements

Source: Frost & Sullivan

PC0E-46 46
 Medium-term Technology

Tire Pressure Monitoring System

Demand for better fuel efficiency and safety lead the TPMS market, forecast to grow from $15.3 million to $445.4 million
at a 96.1% CAGR over the next five years.

TPMS is an electronic system designed to monitor the air pressure inside pneumatic tires on various vehicles. It reports real-time tire-pressure information to
the vehicle driver, either via a gauge, a pictogram display, or a simple low-pressure warning light.

Major Components and Share by Value: Tire Pressure Sensor: 30.0% Display Unit: 30.0% Controller: 40.0%

Current Market and Forecast Market Trends Key Players

TPMS: Revenue Forecast by Category, India,
• Snap-in valve sensors or snap-in valve battery-less sensors currently used • Continental
Revenue ($ Million)

2020 and 2025

500.0 377.6 as tire pressure sensors • Schrader
400.0
300.0 • Pacific Industrial
• Indirect TPMS predominantly used in the aftermarket for the PV category
200.0 42.9 24.9 • Steelmate
100.0 13.4 1.9 -
0.0 • TPMS penetration is primarily high in the aftermarket • TRW
2020 2025 • Blaupunkt
PV Category CV Category 2W Category

Component suppliers System suppliers OEMs and system End users/

suppliers customers
Components (e.g., sensors,
Value System integration
transmitters, antennas, Complete systems
Chain displays)
on vehicles Increased fuel
Developing systems as per Installation, validation, economy and
Manufacturing and assembly specs and testing safety

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Focus on the aftermarket with the basic TPMS • Manufacture/Integrate TPMS with other • Develop robust indirect TPMS modules
module vehicle electronics such as receiver • Build expertise to integrate the TPMS display
• Build expertise on direct TPMS module integration with the RKE or the BCM module into DIS through technology partnerships with
development for the OEM market via technology • Develop multicolor LCD DIS manufacturers
partnerships with established global players

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 47
 Medium-term Technology

Airbag Electronics
Government regulation that mandates airbags for the driver and front-seat passenger in all new models manufactured
from April 2021 and sold in India will drive the airbag market, projected to grow from $328.3 million to $472.0 million at
a 7.5% CAGR over the next five years.
Airbag is a supplementary restraint system for driver and passenger safety in case of a crash. A thin nylon bag in the steering wheel/above the glove
compartment inflates during impact and prevents the driver and passenger from hitting the steering wheel/dashboard.

Major Components and Share by Value: Airbag Module: 40.0% Airbag Control Unit: 45.0% Crash Sensors: 15.0%

Current Market and Forecast Market Trends Key Players

Airbag Electronics: Revenue Forecast by • Market participants such as Takata and Autoliv integrate the airbag inflator • Takata Corp
Revenue ($ Million)

Category, India, 2020 and 2025

500.0 unit and airbag in the airbag module at their manufacturing plant in India • Autoliv Inc
• Rane TRW Steering
250.0 • Suppliers import electromechanical crash sensors and airbag control units
Systems Private limited
328.3 472.0
0.0 • Toyoda Gosei Co
2020 2025
PV Category

System suppliers OEMs and system suppliers End users/Customers

Value System integration on vehicles

Complete systems Increased safety
Chain
Developing the system as per specs Installation, validation, and testing

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Build expertise to manufacture airbag Module • Coordinate with airbag manufacturers to build • Manufacture complete systems via technical
components (inflator and airbag) domestically expertise for airbag control units development tie-ups/JVs with global players with strong
• Manufacture crash sensors through technical • Build expertise on integrating multiple airbags market hold
tie-ups with established players on vehicles • Build expertise on system testing and validation

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 48
 Medium-term Technology

Fully Automatic Temperature Control

Growing demand for in-car comfort drives the FATC market, expected to increase from $67.0 million to $228.5 million at
a 27.8% CAGR over the next five years.

FATC is the ability to monitor and control cabin temperature at user-specified values without manual interventions.

Major Components and Share by Value: Controllers: 50.0% Sensors: 50.0%

Current Market and Forecast Market Trends Key Players

FATC: Revenue Forecast by Category, India, • Standalone controllers used to receive signals from sensors and actuate • Sanden Vikas
Revenue ($ Million)

2020 and 2025

300.0 212.4 control • Subros
200.0 • Delphi
67.0 • Tier 2 suppliers both import and manufacture sensors used in FATC systems
100.0 - 16.1 • Denso
domestically
0.0 • Mahle Behr
2020 2025 • FATC system’s penetration increasing in the mid-size segment cars • Visteon
PV Category CV Category

Component suppliers OEMs and system suppliers End users/

System suppliers Customers
Components (e.g., HVAC modules, System integration on
Value vehicles
sensors, and controllers)
Chain Complete systems
Installation, validation, and Increased
Imports/Manufacturing/ Developing systems testing comfort
Assembly

Opportunity Analysis and Recommendations Technology Evolution

Short Term Medium Term Long Term AC system

• Manufacture ambient • Manufacture standalone controllers as Tier 2 • Build expertise for Integration of the
HVAC system
temperature, sun, and suppliers FATC controller into the BCM
humidity sensors • Focus on compact segment cars where HVAC • Build expertise on the development FATC system
can be upgraded into FATC of Dual Zone Climate Control System
for high end cars Dual-zone climate control
system
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 49
 Medium-term Technology

Motor Controllers/Battery Management Systems

Growing demand for efficient battery life and range drives the BMS market, forecast to rise from $1.2million to
$65.6 million at a 122.5% CAGR over the next five years.

BMS is an electronic device that manages a rechargeable battery, preventing the battery from operating beyond its safe operating area. A motor controller is a
device that acts as an intermediary between microcontrollers, batteries, and motors.

Current Market and Forecast Market Trends Key Players

Motor Controllers/BMS: Revenue Forecast by Category, • Growing the use of battery-powered public transport vehicles will lead to • Leclanche
India, 2020 and 2025
Revenue ($ Million)

60.0 52.4 increased demand for a highly effective and reliable BMS • Nuvation Engineering
40.0 • Renesas Electronics
13.1 • Rising demand to integrate EVs with an effective electric grid network
20.0 - • Johnson Matthey
1.2
0.0 • Elithion
2020 2025 • Navitas Systems
PV Category CV Category

Component suppliers OEMs and system suppliers End users/

Components (e.g., BCU, power System suppliers Customers
System integration on
Value management components, vehicles
Chain communication channels) Complete systems Increased range
Imports/Manufacturing/ Installation, validation, and and higher
Assembly Developing systems testing battery life

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Build expertise to manufacture motor • Coordinate with EV manufacturers to • Partner with global participants with a strong market
controllers and BMS for 2W, 3W, and 4W build expertise for BMS unit development position to develop a complete EV drivetrain
segments
• Build expertise on component • Build expertise on EV system testing and validation
• Manufacture internal electronic components
interchangeability with multiple vehicles
via technical tie-ups with established
international players

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 50
 Medium-term Technology

Selective Catalytic Reduction

Government implementation of stringent emission control regulations drives the SCR market, expected to grow from
$170.9 million to $346.3 million at a 15.2% CAGR over the next five years.

SCR is an innovative, active pollution control system that injects a liquid-reducing agent into a diesel engine's exhaust stream through a special catalyst. This
lowers NOx levels in a catalyst system by using automotive-grade ammonia as a reductant.

Current Market and Forecast Market Trends Key Players

SCR: Revenue Forecast by Category, India,
2020 and 2025
• Government execution of stringent emission control • Faurecia SA
Revenue ($ Million)

200.0 170.9 157.3 189.0 regulations drives SCR implementation in vehicles • Tenneco, INC
150.0 • Eberspacher Group
100.0 • Increasing R&D expenditure globally to reduce
• Benteler International AG
50.0 - catalyst costs
0.0 • Amminex Emissions Technology
2020 2025 • Toyota Motor Corporation
PV Category CV Category

Component suppliers OEMs and system suppliers End users/

System suppliers Customers
Components (e.g., urea tank System integration on
Value vehicles Less pollution
and pump, ECU, injectors)
Chain Complete systems and
Imports/Manufacturing/ Installation, validation, and environment
Assembly Developing systems testing friendly

Opportunity Analysis and Recommendations

Short Term Medium Term Long Term

• Focus on the SCR system assembly with • R&D to reduce catalyst costs • Develop three-way catalyst convertor for better
vehicle system conversion efficiency
• Develop expertise to improve catalyst
• Build in-house expertise to develop integrated efficiency to reduce pollution
systems

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 51
Forecast for Sensors and Actuators

PC0E-46 52
Sensors for Indian Suppliers to Consider
With the growing demand for the powertrain management system, Indian suppliers should target crank and cam position
sensors.
Key Sensors Revenue and Volume, 2025
Automotive Electronics Market: Revenue Forecast by Sensor, India, 2025 XXX CAGR
800.0

5.9% 5.8% 5.9% 8.9% 38.4% 10.2% 5.8% 8.2% 16.9% 97.8% 11.8% 26.5%
Revenue ($ Million)

600.0

400.0
707.1
200.0 468.9
218.6 68.5
20.0 29.4 164.9 123.0 24.1
0.0 73.2 73.4 82.2
Crank Position Cam Sensors Coolant Temp APS/TPS TMAP Air Mass Flow (HFM) VSS Oxygen Sensors Parking Sensors TPMS sensors Fuel-level Sensors Ambient
Sensors Sensors Temperature
Sensors

Automotive Electronics Market: Volume Forecast by Sensor, India, 2025

40.0
Volume (Million)

30.0

20.0
32.4
27.7 27.4 27.2 24.7 27.6
10.0 18.1
10.9
0.0
4.7 4.7 3.0 3.6
Crank Position Cam Sensors Coolant APS/TPS TMAP Air Mass Flow VSS Oxygen Sensors Parking Sensors TPMS Sensors Fuel-level Ambient
Sensors Temperature (HFM) Sensors Temperature
Sensors Sensors
Sensor Type

A PV requires two oxygen sensors, four parking sensors, and four TPMS sensors
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 53
 Actuators for Indian Suppliers to Consider
Solenoid and piezoelectric actuators will drive the actuators market.
Key Actuators Revenue and Volume, 2025
Automotive Electronics Market: Revenue Forecast by Actuator, India, 2025 XXX CAGR

800.0 5.8% 19.2% 12.9% 11.7% 5.9.% 8.5% 6.8% 47.8% 2.2% 5.8% 5.9% 6.0% 10.1% 9.8% 8.9% 11.3% 33.4% (3.2%) 13.0% 14.4% 16.8%
Revenue ($ Million)

600.0

400.0 708.6
198.4
200.0 81.7 32.9 104.1 145.3
8.5 32.5 13.1 7.6 51.1 23.2 32.7 10.7 39.6 80.9 57.9 20.5 12.2 68.2 6.9
0.0

45.0 41.8
Automotive Electronics Market: Volume Forecast by Actuator, India, 2025
40.0
35.0
Volume (Million)

30.0 27.7 26.9 27.7

22.9 23.7
25.0
20.0 17.1
15.0
10.0 4.3 4.7 4.7
3.2 3.3 3.7 4.1 3.3 3.8 2.8
5.0 1.9 0.4 0.6 0.6
0.0

Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

PC0E-46 54
Recommendations for Stakeholders

PC0E-46 55
Framework for Automotive Electronics Manufacturing Ecosystem Development
Government guidance and support, shared responsibility, and investment will be crucial for ecosystem development in India.

Govt. of India

Government Industry Government Industry Government Industry Government Industry

Offer government guidance and support
to increase business viability
• Policies to cover the complete
electronics manufacturing value chain,
including all relevant stakeholders
• Government hand-holding in the form
of subsidies, incentives, resource
allocation, speedy resolution of
concerns, and decision-making is
necessary
• Government initiatives to promote safe
and proper channels for e-waste
recycling to drive the informal sector
integration
Implement a shared responsibility
framework
• Adopt industry-wide systemic
approaches that involve vital public and
private stakeholders
• Align with global best practices with
comprehensive supplier social
responsibility
• India-specific implementation includes
the following:
o Automotive OEMs partner with
electronic component
manufacturing companies for new
technology and required standard
quality
o Build a robust components
localization plan
o Framework to support
formal/authorized recycling facilities
Establish a nodal agency to facilitate
reuse and recycling
• Government-appointed neutral/third-
party agencies facilitate the electronic
component manufacturing ecosystem
development
• Effective innovation requires a
periodical national performance index,
impact evaluation of policy initiatives
for its continuation or mid-course
correction, developments, and
emerging areas, including business
models
• Promote comprehensive testing of
electronic assemblies/subassemblies
and subsidize certification and critical
testing
Encourage investments
• Government subsidies and incentives
needed to kick-start the SME industry
• State funding to play a constructive role
in developing electronics manufacturing
by creating a sustainable investment-
promoting environment
• Required to promote exports via the
Make-in-India branding program and
country-specific initiatives coupled with
export incentives
• Provide financial support to start-ups to
focus on intellectual proprietary rights
creation in the country at the subsystem
level

Note : Low High Impact on Government Low High Impact on Industry

Source: Frost & Sullivan

PC0E-46 56
Recommendations for Government
The government can set up a fabless semiconductor policy and a dedicated fund to support commercial semiconductor
fab in the country.

The government can offer financial support to set up electronic component

manufacturing units (e.g., sensors, LED clusters, PCBs, and LCD Displays).

The government needs to formulate a single-window proprietary approval for the

industry and set up strategically located zones for electronics manufacturing.
Startups need financial development funds and knowledge on partnership
development with OEMs and Public Sector Undertaking (PSU). The government can
build a particular framework to increase electronic manufacturing startups in the
country.
The industry needs a research and development (R&D) fund to increase innovative
technology development and electronic patents.

A robust logistics system and special corridors are necessary to connect different
parts of the country with efficient lead time.
The government needs to provide resources for small enterprises to capitalize on
short and medium-term development opportunities and build ecosystem providers.
The government should support renowned academic research institutes to establish
automotive electronics-related courses to develop field expertise and set up
Industrial Training Institutes (ITIs) specializing in electronics manufacturing for
skilling and re-skilling the workforce.
Source: Frost & Sullivan

PC0E-46 57
Recommendations for Government (continued)
The government can exempt import duty on required capital equipment not manufactured locally to reduce CAPEX for
new or existing electronics manufacturing units.

The government can exclude import duties on necessary capital equipment not
manufactured domestically and set up new units/expand existing electronics
manufacturing units to reduce CAPEX.

The industry needs a special tax structure to encourage a predictable tax system, such
as advanced indication to schedule expenditures in the Phased Manufacturing Plan
(PMP) context, including a sunset clause.

The government should create an ecosystem to support resource growth for

next-generation technologies such as autonomous vehicles and connected mobility.

It should de-license frequency bands needed for automobile use on a non-exclusive

and non-interference basis for the public use of RF/radar-based systems.

The government can provide attractive incentive packages to promote electronics

goods export and empower exporters by facilitating global market access.

Cybersecurity law is necessary to promote secure chip usage to reduce cybersecurity

risks.

The government can establish a Center of Excellence (CoE) under open-engineered

controllers, electronics, and software makers to facilitate faster technology adoption
and offer a healthy competitive environment.

Source: Frost & Sullivan

PC0E-46 58
Recommendations for Value Chain Partners
Robust ecosystem development and monetary support from the government will be vital to automotive electronics
growth in the Indian market. Value chain members need to begin with an aftermarket focus.

Value chain partners need to
initiate special projects to
compete with end-to-end
service providers in emerging
technologies such as connected
services, IoT devices, cloud
computing, and EV components.
Automotive electronics has a long
development cycle, with
knowledge on sophisticated
systems developed over the
years. As such, systematic
capacity building and
investment in futuristic
electronics technology research
are necessary. Indian automotive
electronics manufacturers will
need to work without in-house
coding expertise in the future.
Value chain members should
switch gradually from parts
suppliers to systems integrators
for the OEMs, building a robust
local manufacturing ecosystem.
Existing mechanical component
suppliers need to partner with
international players to research
and develop in-house product
ecosystems in mechatronics,
acquire/build short-term
expertise via technological
linkages with universities, or
follow inorganic growth plans.

Suppliers need to build sensors
and actuators with massive
potential in current and future
automotive trends.
Diversification in other fields such
as industrial,
telecommunications, and medical
is necessary as well.
Value chain partners must
organize conferences and
brainstorming sessions that
include numerous stakeholders
such as the government,
technology providers,
semiconductor producers, and
automakers to establish future
road maps for joint growth and
100% localization.
Indian companies need to
partner with growing initial
stage tech startups to co-develop
new products in connected
services, IoT devices, cloud
computing, and EV components.
Indian companies must
recalibrate operations such as
supply chain, product
development, and data
infrastructure to achieve the best
quality and operational
superiority compared to Chinese
competitors.

Source: Frost & Sullivan

PC0E-46 59
Recommendations for Industry Stakeholders
Open standards that create new partner ecosystems will be critical for implementing emerging innovations in various
verticals. Automotive Electronics Market: Recommendations for Industry Stakeholders, India, 2020–2025

Stakeholder Role and Responsibility Economic Impact Implementation Challenges

Nodal/Quasi- • Build favorable schemes • Growth in foreign investment • Overlap of multiple ministries
government • Take initiatives to improve • Grow diverse industries such • Government agencies catering
Agency ease of doing business in as semiconductor to the same objective
India manufacturing
1 • Develop a robust supply
chain
Nodal/Quasi- Electronics • Partner with major • Revenue sharing opportunity • Matching high international
government Component international players with electronic component quality standards
Agency Manufacturer • Work toward manufacturing manufacturer for reverse
reliable and durable logistics
5 2 electronic components
OEM/Vehicle • Form exclusive partnerships • Cheaper electronic • Mechanism to encourage
Electronics Manufacturer
Disposal and with recyclers/refurbishers components compared to quality and development of
Component • Pursue technical imports new futuristic tech
Remanufacturing
Manufacturer collaboration with local • Building India into an R&D
suppliers for the Make in centre
India initiative
Recycler/ • Partner with all ecosystem • Material retrieved can be • Lack of incentives and
Collection Value stakeholders for first life monetized for non- subsidies
Chain • Partner with second life automotive applications and • Limited business viability in
Recycler/ application stakeholders remanufacturing electronic the next four to six years;
OEM/Vehicle
Collection
Manufacturer components large-scale expansion post-
Value Chain
• Government incentives and 2025
subsidies on investments
4 3 Disposal and • Systematic electronic waste • Monetization from non- • Unenforced/Unmonitored
Remanufacturing disposal after second life automotive applications (e.g., implementation of e-waste
application healthcare, consumer management
• Remanufacture electronic electronics) • Responsibility to ensure anti-
components from retrieved • Business case through dumping policy from other
materials indigenous recycling import nations

Source: Frost & Sullivan

PC0E-46 60
Growth Opportunity Universe

PC0E-46 61
 Growth Opportunity 1—Transition toward Electrification

Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.

Geographic Vertical Market

Expansion Expansion
Customer and Competitive
Branding Distribution Strategy
Growth Strategic
Channel
Processes Partnering
New Product Optimization New Product
Development Launch
Mergers &
Technology and IP
Acquisitions

Opp. Size Relevant Industries for this Growth Opportunity Applicable Regions
$100 M–
in 5 Years $500 M
Industrial Automation Commercial Mobility Security North America South Asia

Environmental Chemicals & Materials Communications Tech Latin America Middle East
Timeline
3 Years
for Action Oil & Gas Agri., Food & Nutrition Information Tech Cent/East Europe European Union

Building Technologies Test & Measurement Pharma & Biotech Asia-Pacific UK

Consumer Electronics Aerospace Advanced Medtech Africa Japan

Base Year 2020
Consumer Mobility Defense Fintech China Oceania

Source: Frost & Sullivan

PC0E-46 62
Growth Opportunity 1—Transition toward Electrification (continued)
Context and Definition
• India’s EV market is still nascent and is forecast
to record a 2.4% CAGR from 2020 to 2025. The
market remains untapped and offers immense
potential for 2W and passenger segment EVs.
• The government has laid out initiatives such as
the Faster Adoption and Manufacturing of
Electric Vehicles (FAME) and other incentives
that favor manufacturing and infrastructure.
This will increase market adoption and ease
penetration in the country.
Call to Action
• Automotive electronics manufacturers should
strategize their investments and align efforts
toward growing their market presence.
• The government needs to offer Tier 1 and Tier 2
electronics manufacturers and other value chain
partners incentives. With all these combined
incentives, manufacturers must reduce
ownership costs at both the subcomponent and
vehicle levels.
Source: Frost & Sullivan
PC0E-46 63
 Growth Opportunity 2—Customer Awareness Increases Adoption
Rates
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.

Geographic Vertical Market

Expansion Expansion
Customer and Competitive
Branding Distribution Strategy
Growth Strategic
Channel
Processes Partnering
New Product Optimization New Product
Development Launch
Mergers &
Technology and IP
Acquisitions

Opp. Size Relevant Industries for this Growth Opportunity Applicable Regions
$100 M–
in 5 Years $500 M
Industrial Automation Commercial Mobility Security North America South Asia

Environmental Chemicals & Materials Communications Tech Latin America Middle East
Timeline
3 Years
for Action Oil & Gas Agri., Food & Nutrition Information Tech Cent/East Europe European Union

Building Technologies Test & Measurement Pharma & Biotech Asia-Pacific UK

Consumer Electronics Aerospace Advanced Medtech Africa Japan

Base Year 2020
Consumer Mobility Defense Fintech China Oceania

Source: Frost & Sullivan

PC0E-46 64
Growth Opportunity 2—Customer Awareness Increases Adoption
Rates (continued)
Context and Definition
• For price-sensitive markets like India,
mass-market adoption of auto electronic
technologies in segments like entertainment,
communication, safety, and convenience
features are dependent on the value proposition
it offers for the implementation cost.
• Stakeholders should emphasize awareness of
safety features such as ABS, collision warning,
airbags, seatbelts, and other active and passive
safety features among Indian consumers to drive
a high adoption rate.
Call to Action
• OEMs should communicate and promote value
proposition in customer benefits like
cost-efficiency, long-term return on investment,
and driver and passenger safety to industry
stakeholders.
• Mandating these critical safety features while
lowering the total cost of ownership through
cost reduction in the value chain will increase
automotive electronics adoption in mass-market
vehicles.
Source: Frost & Sullivan
PC0E-46 65
 Growth Opportunity 3—Health Wellness Well-being (HWW) Evolution
in the Automotive Industry
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.

Geographic Vertical Market

Expansion Expansion
Customer and Competitive
Branding Distribution Strategy
Growth Strategic
Channel
Processes Partnering
New Product Optimization New Product
Development Launch
Mergers &
Technology and IP
Acquisitions

Opp. Size Relevant Industries for this Growth Opportunity Applicable Regions
$100 M–
in 5 Years $500 M
Industrial Automation Commercial Mobility Security North America South Asia

Environmental Chemicals & Materials Communications Tech Latin America Middle East
Timeline
3 Years
for Action Oil & Gas Agri., Food & Nutrition Information Tech Cent/East Europe European Union

Building Technologies Test & Measurement Pharma & Biotech Asia-Pacific UK

Consumer Electronics Aerospace Advanced Medtech Africa Japan

Base Year 2020
Consumer Mobility Defense Fintech China Oceania

Source: Frost & Sullivan

PC0E-46 66
Growth Opportunity 3—Health Wellness Well-being (HWW) Evolution
in the Automotive Industry (continued)
Context and Definition Call to Action
• Frost & Sullivan anticipates the need for • Industry stakeholders should provide the HWW
innovation and product differentiation to push features through partnerships with healthcare
automakers to tie up with multiple stakeholders providers and enable availability to customers.
across industries to offer increased healthcare
• OEMs should include essential health parameter
and wellness systems for drivers and passengers.
monitoring (e.g., heart rate, blood pressure,
• We project faster adoption of basic HWW oxygen saturation) and real-time health alerts as
systems such as air filtration, fatigue detection, critical features for initial adoption.
and allergen monitoring in cars worldwide amid
the COVID-19 pandemic.

Source: Frost & Sullivan

PC0E-46 67
Next Steps

PC0E-46 68
Your Next Steps

Take the Growth Participate in a Decide on Growth

Pipeline customized Growth Pipeline Audit™ or
Diagnostic™ Pipeline Dialog™ GPaaS™ Solution

1 2 3 3
Have your Growth Team Engage in a deep dive Connect with your
executives take the online discussion with our Frost & Sullivan
survey for a high-level consulting team to consultant to embark on
diagnostic on your understand new growth the growth journey
growth capabilities opportunities

PC0E-46 69
Why Frost, Why Now?

Our Expertise Client Impact

• 60 years of proven global experience

EXPERIENCE • Trusted partner of Investors, corporates, • FUTURE GROWTH POTENTIAL:
& governments Maximized through collaboration

• GROWTH PIPELINE™: Continuous

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COVERAGE comprehensive coverage
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ANALYTICS analytical perspectives
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to Action™ • TRANSFORMATIONAL GROWTH:
BEST PRACTICES • Ten Growth Processes: Best practices
Industry leadership
foundation

PC0E-46 70
List of Exhibits

Exhibit Slide Number

Automotive Electronics Market: Short, Medium and Long-term Technologies, India, 2020–2025 12

Automotive Electronics Market: Market Opportunity for Sensors, India, 2020–2025 13

Automotive Electronics Market: Sensors and Actuators, India, 2020–2025 17

Automotive Electronics Market: Key Sensors and Applications, India, 2020–2025 18

Automotive Electronics Market: Technologies and Segment Scope, Global, 2020–2025 20

Automotive Electronics Market: Competences for Electronics Design, India, 2020–2025 23

Automotive Electronics Market: Growth Drivers, India, 2021–2025 28

Automotive Electronics Market: Growth Restraints, India, 2021–2025 29

Automotive Electronics Market: Electrification of Vehicles, India, 2030 31

Automotive Electronics Market: Forecast for Short-term Technologies, India, 2020–2025 32

Automotive Electronics Market: Forecast for Medium-term Technologies, India, 2020–2025 33

Automotive Electronics Market: Technology Development Complexity vs Revenue, India, 2025 35

Automotive Electronics Market: Technology Development Effort vs Revenue, India, 2025 36

PC0E-46 71
List of Exhibits (continued)

Exhibit Slide Number

RPG: Revenue Forecast by Category, India, 2020 and 2025 38

ICE System: Revenue Forecast by Category, India, 2020 and 2025 39

ABS: Revenue Forecast by Category, India, 2020 and 2025 40

DIS: Revenue Forecast by Category, India, 2020 and 2025 41

BCM: Revenue Forecast by Category, India, 2020 and 2025 42

RKE: Revenue Forecast by Category, India, 2020 and 2025 43

PEPS: Revenue Forecast by Category, India, 2020 and 2025 44

ESC: Revenue Forecast by Category, India, 2020 and 2025 45

Telematics: Revenue Forecast by Category, India, 2020 and 2025 46

TPMS: Revenue Forecast by Category, India, 2020 and 2025 47

Airbag Electronics: Revenue Forecast by Category, India, 2020 and 2025 48

FATC: Revenue Forecast by Category, India, 2020 and 2025 49

Motor Controllers/BMS: Revenue Forecast by Category, India, 2020 and 2025 50

PC0E-46 72
List of Exhibits (continued)

Exhibit Slide Number

SCR: Revenue Forecast by Category, India, 2020 and 2025 51

Automotive Electronics Market: Revenue Forecast by Sensor, India, 2025 53

Automotive Electronics Market: Volume Forecast by Sensor, India, 2025 53

Automotive Electronics Market: Revenue Forecast by Actuator, India, 2025 54

Automotive Electronics Market: Volume Forecast by Actuator, India, 2025 54

Automotive Electronics Market: Recommendations for Industry Stakeholders, India, 2020–2025 60

PC0E-46 73
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PC0E-46 74