The automotive world is undeniably in a state of constant evolution. The days when cars were devoid of technology are long gone: electronics now play a central role in the design and manufacture of modern vehicles. The integration of electronic technologies has transformed the driving experience. These improvements have not come without consequences for the purchase price of cars. Wondering how much electronics add to the cost of a car? EDEN BOITES takes a closer look in this article!
How do electronics influence the price of modern vehicles?
Electronics now play an essential role in determining the price of modern vehicles, accounting for up to nearly half of a car's total cost. Indeed, electronic components have considerably increased the value of cars over the years. This rise is driven primarily by the integration of advanced technologies, such as driver assistance systems, infotainment touchscreens, GPS navigation systems and electronic safety devices. These features, whilst improving the driving experience and safety compared with a classic older car, carry a significant cost that is reflected in the final price. Furthermore, the growing complexity of electronic systems influences maintenance and repair costs. Diagnostics and work now require specialist equipment and highly technical expertise, pushing workshop rates higher. Finally, manufacturers' substantial investment in the research and development of new electronic technologies also contributes to rising prices. These expenditures, essential for remaining competitive, are partly passed on to the end consumer.How has the share of electronics in car prices evolved over the years?
The importance of electronics in vehicle costs has grown at a remarkable pace over recent decades. In the 1970s, electronics accounted for just 5 to 10% of a car's price, limited mainly to fuel injection. The period from 2000 to 2010 marked a decisive turning point with the advent of multiplexing and the widespread adoption of ABS/ESP systems. By 2000, electronics already accounted for 22% of the price of a new vehicle. Today, that proportion has nearly doubled. According to a study by Deloitte, the multinational professional services network, electronics represented around 40% of the price of a new car in 2020. This increase is explained by the growing integration of advanced technologies such as driver assistance systems, infotainment systems and electronic safety devices. Future projections are equally striking. By 2030, it is estimated that electronics could account for 50% of a vehicle's value. This trend is set to continue with the advent of autonomous vehicles, where electronics will play an even more central role.Car electronics: what does the future hold for the automotive industry?
The future of automotive electronics looks promising, with sustained growth and an ever-greater influence on the industry. As an indication, this growth will be particularly pronounced for electric vehicles, where electronics could account for 35% of the vehicle's value, excluding battery systems. Demand for this type of vehicle is expected to grow at an annual rate of 29.4% over the coming years, reaching $570.47 billion by 2029. This expansion will be driven by government policies, environmental concerns and the growing acceptance of electric mobility. The future will also see the emergence of more connected and autonomous vehicles. These vehicles will become true intelligent companions, offering personalised experiences and integrating into a digital mobility ecosystem. Despite these promising prospects, challenges remain, particularly in terms of the growing complexity of systems and potentially high maintenance costs. Indeed, electronic faults will require increasingly sophisticated electronic diagnostics, which can only be carried out by qualified automotive electronics specialists. The use of advanced diagnostic tools, such as diagnostic scanners, will become essential for reading and clearing fault codes. Specialist mechanics will also need to continually update their skills to keep pace with these new technologies. This will undeniably impact vehicle owners' maintenance budgets, as the cost of repairs and full services could rise due to the complexity of electronic systems.What are the most expensive electronic components in modern cars?
In modern vehicles, several electronic components stand out for their high cost, including:- Advanced driver assistance systems (ADAS): these advanced technologies, including radars, lidars (obstacle detection, mapping and navigation) and cameras, account for a significant share of electronic costs. As genuine safety systems, they are essential for semi-autonomous driving and active safety functions;
- Electronic control units (ECUs): these electronic 'brains' manage various vehicle systems, from engine management to transmission control. Their growing complexity increases their cost;
- Infotainment systems, including high-resolution touchscreens, powerful processors and sophisticated audio systems;
- Batteries and management systems for electric vehicles: in electric cars, these electrical components account for a significant share of the total cost;
- Environmental sensors: these advanced sensors carry a significant cost. They are used notably for air conditioning, air quality, temperature and particulate filter pressure monitoring, as well as other comfort functions;
- Connectivity systems: communication modules for 5G, Wi-Fi and Bluetooth also contribute to the overall cost of electronics;
- Electronic circuit boards: present in almost every electronic system mentioned, they are the physical support for numerous electronic components. As an indication, a modern car contains on average more than 100 electronic circuit boards.
