by The automotive embedded systems include electronic control units and components such as sensors, microcontrollers, Application-Specific Integrated Circuits (ASICs) and Field-Programmable Gate Arrays (FPGAs) that control various electrical systems and subsystems in vehicles. It helps to enhance the convenience, comfort and safety functions in vehicles. For instance, advanced driver assistance systems require embedded systems for functions such as Adaptive Cruise Control (ACC), Automatic Emergency Braking (AEB), Lane Keeping Assistance and Blind Spot Monitoring.
The global automotive embedded systems market is estimated to be valued at US$ 18.12 billion 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:
Growing demand for convenience, comfort and safety functions: The rising demand for safety and convenience features in vehicles is one of the major drivers of the automotive embedded systems market. Consumers are more inclined towards vehicles equipped with features such as advanced driver assistance systems, infotainment systems, telematics, wireless connectivity and others. Moreover, stringent safety regulations by governments worldwide for vehicle safety is also fuelling the demand for advanced automotive embedded systems.
Growing connectivity in vehicles: Connected vehicles and increasing penetration of internet of things is another key driver for the growth of automotive embedded systems market. Modern vehicles are equipped with features such as wireless connectivity, vehicle-to-vehicle communication and vehicle-to-infrastructure communication which require embedded hardware and software systems for seamless connectivity.
Segment Analysis
The global automotive embedded systems market is segmented on the basis of component, application and vehicle type. Based on component, the market is segmented into hardware and software. The hardware segment currently dominates the market due to high demand for embedded hardware devices used in automotive applications.
Based on application, the market is segmented into infotainment, engine management system, anti-lock braking system, airbags, vehicle security, and others. The infotainment segment currently dominates the market due to high demand for automotive infotainment systems.
Based on vehicle type, the market is segmented into passenger vehicles and commercial vehicles. The passenger vehicle segment currently dominates the market due to high demand for automotive embedded systems equipped passenger vehicles.
PEST Analysis
Political: Automotive industry faces stringent emission and safety regulations across major countries which drives demand for advanced automotive embedded systems to comply with regulations.
Economic: Rising disposable incomes and growing vehicle ownership levels globally drives adoption of advanced technologies in vehicles, fueling growth of automotive embedded systems market.
Social: Increasing consumer preference for connected and autonomous vehicle technologies presents growth opportunities for automotive embedded system providers.
Technological: Advancements in network technology, artificial intelligence, and vehicle connectivity strengthen capabilities of automotive embedded systems in managing critical vehicle operations.
Key Takeaways
The Global Automotive Embedded Systems Market is expected to witness high growth over the forecast period driven byfactors such as stringent emission and safety regulations, increasing connected and autonomous vehicle technologies. 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 region currently dominates the market due to presence of major automotive OEMs and embedded systems providers in the region. Growth in the region is expected to be driven by increasing adoption of electric vehicles equipped with advanced embedded systems for critical vehicle operations.
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. The players are focusing on developing innovative embedded hardware and software solutions for applications like infotainment, advanced driver assistance systems and connectivity modules to strengthen their market position.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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