by The global automotive embedded systems market is estimated to be valued at US$ 9.6 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights
Market Overview:
Automotive embedded systems are integrated systems that are embedded in the hardware and software of a vehicle. These systems play a crucial role in providing various functionalities such as ADAS, infotainment systems, engine control systems, and safety systems. The increasing demand for advanced driver assistance systems (ADAS) is driving the growth of the automotive embedded systems market. ADAS technologies such as lane departure warning systems, adaptive cruise control, and collision warning systems improve vehicle safety and enhance the driving experience.
Market Key Trends:
The key trend driving the automotive embedded systems market is the growing demand for ADAS. ADAS provides advanced safety features that assist drivers in avoiding accidents and improving overall road safety. The increasing adoption of ADAS by automotive manufacturers is propelling the demand for automotive embedded systems.
ADAS systems use various embedded systems such as sensors, cameras, and control units to effectively detect and respond to potential road hazards. These systems provide features such as automatic emergency braking, blind spot detection, and lane-keeping assistance, which help in preventing accidents and reducing the severity of collisions.
Moreover, government regulations mandating the integration of ADAS in vehicles to enhance road safety are further driving the growth of the automotive embedded systems market. For instance, in the European Union, the General Safety Regulation requires all new vehicles to be equipped with a variety of safety features, including ADAS, from 2022 onwards.
Overall, the increasing demand for advanced safety features in vehicles and government regulations promoting road safety are the key trends driving the growth of the automotive embedded systems market.
PEST Analysis
Political: The political landscape plays a significant role in the automotive embedded systems market. Government regulations and policies regarding vehicle safety and emission standards can impact the market. For example, stricter regulations on emission levels may require automakers to invest more in advanced embedded systems to meet these standards.
Economic: The economic factors influencing the automotive embedded systems market include the overall economic growth, disposable income of consumers, and interest rates. A growing economy with a stable consumer base can lead to increased vehicle sales, positively impacting the market for embedded systems.
Social: Social factors such as changing lifestyles and preferences of consumers can influence the demand for advanced automotive technologies. Increased consumer preference for connected cars, enhanced safety features, and improved overall driving experience can drive the adoption of embedded systems in vehicles.
Technological: Rapid technological advancements in the automotive industry drive the need for more sophisticated embedded systems. The adoption of technologies like IoT, artificial intelligence, and advanced sensors for autonomous driving necessitates the integration of advanced embedded systems in vehicles.
Key Takeaways
The Global Automotive Embedded Systems Market Demand is projected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period of 2023-2030. The market size for 2023 is estimated to be US$ 9.6 billion.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the automotive embedded systems market. The region has a significant automotive manufacturing base, with countries like China, Japan, and South Korea leading in vehicle production. Moreover, the increasing disposable income of consumers in this region and their inclination towards technologically advanced vehicles drive the market growth.
Key players operating in the automotive embedded systems market include Robert Bosch GmbH, Panasonic Corporation, Toshiba, Continental AG, Denso Corporation, Mitsubishi Electric Corporation, Texas Instruments Incorporated, Infineon Technologies AG, and Harman International. These players have a strong market presence and offer a wide range of embedded systems and solutions for the automotive industry.
Overall, the automotive embedded systems market is poised for significant growth due to technological advancements, changing consumer preferences, and government regulations. The increasing demand for connected cars, enhanced safety features, and autonomous driving is expected to contribute to the market’s expansion in the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
