Automotive embedded systems are microprocessor-based devices that are incorporated within vehicle systems to enable safety, comfort, and entertainment functions. Embedded systems control crucial functions in modern vehicles such as engine management, traction control, anti-lock braking systems, airbags, collision notification systems, navigation, vehicle telematics, infotainment systems, and more. The global automotive embedded systems market encompasses a wide range of products including sensors, microcontrollers, transceivers, and memory devices. Technological advancements in vehicle electronics have revolutionized the automotive industry, with features such as adaptive cruise control, lane departure warnings, automatic emergency braking, and driver drowsiness detection becoming common on new vehicles. The growing demand for advanced driver-assistance systems (ADAS) and subsequent vehicle automation is a major growth driver for the automotive embedded systems market.
The global automotive embedded systems Market is estimated to be valued at US$ 18.12 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the automotive embedded systems market is the increasing demand for advanced safety and security features from consumers. Automakers are extensively incorporating embedded systems to provide safety features such as automatic emergency braking, lane departure warnings, blind spot detection, backup cameras and more. This is being driven by rising road accidents and stricter safety regulations. Furthermore, the evolution of self-driving vehicles relies on sophisticated automotive embedded systems to support functions such as sensors for Collision Avoidance Systems (CAS), Engine Management Systems (EMS), automated driving and more. The growing demand for infotainment and connectivity features is also propelling the need for more powerful and efficient automotive embedded systems. Technologies such as cloud connectivity, over-the-air updates and advanced navigation/entertainment systems require high-performance embedded processors, modems, and storage devices. The implementation of new advanced driver-assistance systems and automated driving features will continue to drive innovation and growth of the automotive embedded systems market during the forecast period.
Segment Analysis
The automotive embedded systems market is segmented into software, hardware and services. The hardware segment dominates the market and accounts for over 50% share owing to widespread adoption of embedded hardware components like sensors and controllers in modern vehicles. Embedded hardware enables various vehicle applications and management of critical systems.
PEST Analysis
Political: Governments globally are emphasizing road safety through regulations mandating incorporation of advanced driver assistance and active safety features in vehicles. This is boosting adoption of embedded systems.
Economic: Rising vehicle production and sales is fueling automotive electronics content per vehicle. Higher disposable incomes is increasing consumer demand for connected and autonomous driving technologies.
Social: Younger consumers prefer advanced infotainment and connectivity features in vehicles. This is driving OEM focus on developing new-age automated and connected vehicles based on embedded systems.
Technological: Developments in AI, IoT, 5G and cloud computing are creating opportunities for enhanced automated driving, vehicle telematics, predictive maintenance and software updates over the life of a vehicle.
Key Takeaways
The Global Automotive Embedded Systems Market Size is expected to witness high growth over the forecast period. The global automotive embedded systems Market is estimated to be valued at US$ 18.12 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
North America accounts for the largest share currently led by the US, owing to high vehicle production and sales along with stringent safety regulations. Europe holds the second largest share driven by Germany, Italy and France. Asia Pacific is projected to be the fastest growing regional market. This can be attributed to surging vehicle production hubs and sales in major markets of China and India along with uptake of advanced electric and connected vehicles.
Key players
Key players operating in the automotive embedded systems market are Diadem srl., Proteomedix, Cleveland Diagnostics, F. Hoffmann-La Roche Ltd, GENFIT, Nutech Cancer Biomarkers India Pvt Ltd, SysmOex Corporation, Minomic, Creative Diagnostics, Eisai Co., Ltd., and C2N Diagnostics. Diadem srl is a notable player offering embedded automotive control units and software solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
