Samsung Electronics said on the 23rd that it acquired the advanced driver-assistance system (ADAS) business of Germany's "ZF" through its subsidiary Harman. The deal is worth 1.5 billion euros (about 2.6 trillion won) and marks the first acquisition in the auto parts business since Samsung Electronics bought Harman in 2017, six years ago. This year, Samsung Electronics has been pushing investments to secure future growth engines by closing large-scale mergers and acquisitions (M&A) in areas such as HVAC and auto parts, audio, and digital health (Xealth in the United States).
On the day, Samsung Electronics said it plans not only to execute large-scale M&A through its Harman cooperation team, but also to strengthen its position as the No. 1 global auto parts and audio company with more than $20 billion in sales by 2030 by creating synergy between Harman's and Samsung Electronics' diverse IT, software, and artificial intelligence (AI) technologies and their auto parts and audio technologies. The ADAS acquisition process is expected to be completed in 2026.
ZF, which began in Germany in 1915, is a global, comprehensive auto parts company boasting more than 100 years of history and know-how, with a wide business portfolio ranging from ADAS, transmissions, and chassis to electric vehicle drive components. The ZF ADAS business being acquired by Harman, backed by more than 25 years in the field, holds the No. 1 position in the global ADAS smart camera market. It collaborates with various system-on-chip (SoC) companies to secure differentiated ADAS technologies and leads the market by supplying ADAS products to major global automakers.
With this acquisition, Harman will secure ADAS-related technologies and products that play a key role in driving assistance, such as forward-facing vehicle cameras and ADAS controllers, and will make a full-fledged entry into the fast-growing ADAS market. Recently, vehicles have evolved into software-defined vehicles (SDV) as IT technologies and software converge, and are shifting to a centralized controller architecture that integrates the digital cockpit and ADAS.
A centralized controller architecture allows new software functions to be conveniently updated over the air (OTA), offering richer and more flexible customer experiences and feature upgrades. With a systematic software architecture design, maintenance is simplified, and the overall development period, including products and related software, can be shortened.
The ADAS and centralized controller market is expected to surge from 62.6 trillion won this year to 97.4 trillion won in 2030 and 189.3 trillion won in 2035, growing an average of 12% annually through 2035.
Christian Sobottka, Harman's CEO and president of the Automotive division, said, "With this acquisition, we have added the ADAS business to Harman's product portfolio, establishing a strategic foothold to supply centralized integrated controllers in the auto parts market at a technological inflection point where the digital cockpit and ADAS are converging."
Son Young-kwon, chair of Harman's board, said, "Samsung Electronics has steadily built a track record of success by accelerating innovation and delivering new value to customers through strategic M&A," and added, "This acquisition will further solidify Harman's leadership in driving the transformation of the mobility industry, while clearly demonstrating Samsung Electronics' long-term commitment to future mobility."
Since being acquired by Samsung Electronics, Harman's sales have doubled over the past eight years, from 7.1 trillion won in 2017 to 14.3 trillion won in 2024, and operating profit has remained at a stable level of around 10%. The auto parts institutional sector is continuing to grow in telematics and displays, in addition to its global No. 1 infotainment systems and digital cockpits, and it maintains the industry's No. 1 position in premium car audio by leveraging the know-how of its own brands, including Bang & Olufsen, JBL, Harman Kardon, and Mark Levinson.