May 26, 2024
Automotive Embedded Systems Market
Ict

Automotive Embedded Systems Market Set for Rapid Growth Driven by Increasing ADAS and Infotainment Services Applications

The automotive embedded systems are combination of hardware and software that are designed to perform specific tasks for automotive applications. Such systems are widely employed in advanced driver assistance systems (ADAS), infotainment units, telematics control units, and powertrain systems among others. Rapid innovations in ADAS technologies such as lane departure warning systems, emergency braking, adaptive cruise control etc. have boosted the demand for automotive embedded systems. Growing need for enhanced in-vehicle experience with features like navigation, rear view camera display, connectivity options and multimedia playback is also driving the need for more advanced automotive embedded systems.

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 23% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The increasing demand for ADAS and infotainment systems referred in the heading is one of the major drivers of the automotive embedded systems market. Growing concerns regarding road safety and stringent regulations mandating safety features such as ABS and collision warning systems in new vehicles has accelerated the adoption of ADAS technologies. This in turn is fueling the need for more powerful and efficient automotive embedded platforms. Additionally, rising demand for connected vehicles with features like live traffic updates, WiFi hotspot, and over-the-air updates is also boosting the automotive embedded systems market. However, high replacement costs associated with automotive embedded systems and concerns regarding data security and privacy can hamper the market growth over the forecast period.

Segment Analysis

The automotive embedded systems market is dominated by the wireless sub-segment. Wireless connectivity enables advanced driver-assistance systems like adaptive cruise control, lane departure warning, and collision avoidance which require real-time data exchange between sensors and processors. The growing demand for enhanced safety features in modern vehicles is driving the adoption of wireless technologies like Wi-Fi, Bluetooth, and 4G LTE in automobiles.

PEST Analysis

Political: Government regulations around vehicle safety and emissions are promoting the integration of sophisticated electronic control modules in cars. Standards like Euro NCAP incentivize automakers to equip their models with active and passive safety technologies.

Economic: As disposable incomes rise globally, consumers are willing to pay extra for vehicles packed with infotainment and assistive functionalities. The booming automotive industry in developing nations is a major revenue generator for embedded systems developers.

Social: Younger customers expect their vehicles to be connected and customizable like their mobile devices. The proliferation of connectivity and rise of autonomous driving has elevated consumer awareness about updated automotive technologies.

Technological: Advances in embedded processors allow for faster computation of real-time sensor data. Miniaturization of semiconductors facilitates integration of multiple control units within the framework of a vehicle. Continued innovation in connectivity solutions like 5G will drive new use cases.

Key Takeaways

The Global Automotive Embedded Systems Market Size is expected to witness high growth. 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 23% over the forecast period 2023 to 2030.

Regional analysis : North America dominates currently due to the early adoption of advanced driver-assistance systems (ADAS) in that region. The Asia Pacific market is poised to grow at the fastest pace led by China and India on account of increasing vehicle production and sales.

Key players : Key players operating in the automotive embedded systems market are Broadcom Inc., Sicoya GMBH, GlobalFoundries Inc., Intel Corporation, Juniper Networks Inc., Cisco Systems Inc., IBM Corporation, and NeoPhotonics Corporation. Intel Corporation specializes in automotive system-on-chips that power infotainment centers, instrument clusters as well as autonomous driving sensors. Broadcom Inc. supplies networking chips for connected vehicle gateways enabling cloud connectivity.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it