“The global Automotive Embedded Systems market size was valued at USD 20.5 billion in 2023 and is expected to expand at a CAGR of 8.2% from 2024 to 2031, reaching USD 38.7 billion by the end of 2031.”
Asia-Pacific was the dominant region in 2023, accounting for over YY% market share, followed by Europe and North America. Key growth drivers include rising demand for advanced driver assistance systems (ADAS), increasing adoption of electric vehicles, and growing emphasis on vehicle safety and fuel efficiency norms.
The automotive industry is undergoing a significant transformation as current electronic technologies and software are incorporated into vehicles. Embedded systems have a wide range of applications, including entertainment, navigation, advanced driver assistance systems (ADAS), powertrain control, and body electronics. Consumer demand for technologically advanced, safer, and more efficient vehicles propels the automotive embedded systems market.
The global push for vehicle electrification to reduce carbon emissions is a major trend that is driving demand for automotive embedded systems. Electric vehicles (EVs) and hybrids rely heavily on embedded electronic control units (oecus) to manage power, monitor batteries, and regulate electric motors. According to the International Energy Agency (IEA), the global electric vehicle fleet will reach 10.2 million in 2020, up 43% from the previous year.
Consumers are increasingly interested in advanced driver assistance technologies like adaptive cruise control, lane departure warning, and automatic emergency braking because they improve safety and convenience. These systems use embedded sensors, cameras, and OCUs to process data in real time and assist drivers. According to Aurorawave Intellects Research, the global ADAS market will grow at a 12.3% CAGR from 2021 to 2028, reaching USD XX billion by 2028.
To reduce road accidents and prevent climate change, governments throughout the world are enacting stricter vehicle safety and emissions regulations. For example, the European Union has mandated that all new passenger cars be equipped with advanced emergency braking systems (AEBS) and lane departure warning systems (LDWS) commencing in July 2022. These standards promote the use of embedded technology to ensure compliance and increase vehicle safety.
In 2023, microcontrollers, processors, sensors, and other hardware components will dominate the automotive embedded systems market. This segment's growth is being driven by the increasing complexity of automotive electronic systems and the growing demand for sophisticated vehicle capabilities.
In January 2022, Infineon Technologies AG revealed their new AURIX TC4x microcontroller family, which is specifically designed for automotive applications. These microcontrollers improve performance, security, and functional safety features to satisfy the growing demands of the automotive industry. The hardware category is expected to maintain its dominance during the projection period, as the integration of advanced electronic components becomes increasingly important for the development of self-driving and connected vehicles.
Asia-Pacific is the main region in the automotive embedded systems market. In 2023, Asia-Pacific dominated the global automotive embedded systems market, accounting for more than YY% of the total. The presence of large automotive companies, expanded automobile manufacturing, and the increasing usage of electric vehicles are the primary drivers of the region's growth. China, Japan, and South Korea are the main drivers of regional market growth.
China, the world's largest automobile market, is seeing an increase in the adoption of electric vehicles. Despite the COVID-19 outbreak, the country's electric vehicle sales climbed by 12% in 2020, totalling 1.3 million. The Chinese government's EV-friendly laws and incentives are expected to boost demand for automotive embedded systems in the country.
The automotive embedded systems industry is highly competitive, with major players such as Robert Bosch GmbH, Continental AG, Denso Corporation, and Aptiv PLC. To improve their market position, these companies are exploring strategic alliances, mergers and acquisitions, and product development.
Robert Bosch GmbH said in 2021 that it will invest €1 billion in the development of automotive microelectronics and electromobility components. The company intends to grow its market share in automotive embedded systems by leveraging its software and hardware development capabilities. Continental AG, another major player, purchased Elektrobit Automotive GmbH in 2015 to broaden its embedded software and automotive services offerings.
New players, including technology companies and start-ups, are entering the market and collaborating with established automakers to develop novel embedded systems. For example, in 2020, Intel Corporation purchased Moovit, a mobility-as-a-service (MaaS) technology provider, in order to strengthen its position in the autonomous vehicle market.
The automotive embedded systems market's future prospects are promising, with increased R&D spending, increased collaboration between automotive and technology companies, and rising demand for distinctive automobile features.
The automotive embedded systems market is predicted to expand rapidly in the coming years, owing to increased adoption of electric vehicles, rising need for improved driver assistance systems, and a greater emphasis on vehicle safety and efficiency. The market is shifting towards software-defined automobiles, with embedded systems playing a critical role in delivering a diverse set of features and services.
The Asia-Pacific region, particularly China, is expected to drive market growth due to the presence of major automakers, favourable government regulations, and increasing customer demand for technologically advanced automobiles. The European and North American markets are also expected to grow dramatically as a result of stricter automobile safety and emissions requirements.
Traditional automakers and technology companies are more likely to work together to develop breakthrough embedded systems and solutions. The introduction of AI, machine learning, and 5G connectivity into automotive embedded systems will further alter the industry, allowing for the development of self-driving and connected automobiles.
Robert Bosch GmbH
Continental AG
Denso Corporation
Aptiv PLC
Panasonic Corporation
Harman International Industries, Inc.
Visteon Corporation
NXP Semiconductors N.V.
Infineon Technologies AG
Renesas Electronics Corporation
In May 2022, Aptiv PLC announced that it will invest $4.3 billion to purchase Wind River Devices, Inc., a global leader in software delivery for intelligent linked devices. The acquisition intends to strengthen Aptiv's position in the automotive software market.
Continental AG will launch its new high-performance computing (HPC) platform in July 2021, with the purpose of allowing software-defined vehicle development. The platform combines hardware and software to offer centralised control of vehicle functions.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium) *
5. COMPANY PROFILES
5.1. Robert Bosch GmbH
5.2. Continental AG
5.3. Denso Corporation
5.4. Aptiv PLC
5.5. Panasonic Corporation
5.6. Harman International Industries, Inc.
5.7. Visteon Corporation
5.8. NXP Semiconductors N.V.
5.9. Infineon Technologies AG
5.10. Renesas Electronics Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing adoption of electric and hybrid vehicles
6.1.2. Growing demand for advanced driver assistance systems (ADAS)
6.1.3. Integration of artificial intelligence and machine learning
6.2. Market Drivers
6.2.1. Stringent vehicle safety and emission regulations
6.2.2. Rising consumer demand for technologically advanced vehicles
6.2.3. Increasing investments in autonomous vehicle development
6.3. Market Restraints
6.3.1. High cost of embedded systems
6.3.2. Complex software development and integration processes
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY COMPONENT (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Hardware
7.1.1. Microcontroller Units (MCUs)
7.1.2. Electronic Control Units (ECUs)
7.1.3. Sensors
7.1.4. Memory Devices
7.1.5. Others
7.2. Software
7.2.1. Operating Systems
7.2.2. Middleware
7.2.3. Application Software
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Infotainment & Telematics
8.1.1. Navigation Systems
8.1.2. Audio/Video Systems
8.1.3. Communication Systems
8.2. Body Electronics
8.2.1. Lighting Systems
8.2.2. Access Control Systems
8.2.3. HVAC Systems
8.3. Safety & Security
8.3.1. Advanced Driver Assistance Systems (ADAS)
8.3.2. Airbag Control Systems
8.3.3. Electronic Brake Control Systems
8.4. Powertrain & Chassis Control
8.4.1. Engine Control Systems
8.4.2. Transmission Control Systems
8.4.3. Suspension Control Systems
9. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Passenger Cars
9.1.1. Hatchbacks
9.1.2. Sedans
9.1.3. SUVs
9.2. Commercial Vehicles
9.2.1. Light Commercial Vehicles (LCVs)
9.2.2. Heavy Commercial Vehicles (HCVs)
10. BY ELECTRICAL VEHICLE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Battery Electric Vehicles (BEVs)
10.2. Fuel Cell Electric Vehicles (FCEVs)
10.3. Hybrid Electric Vehicles (HEVs)
10.4. Plug-in Hybrid Electric Vehicles (PHEVs)
11. BY REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)*
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Component:
Hardware
Microcontroller Units (MCUs)
Electronic Control Units (ECUs)
Sensors
Memory Devices
Others
Software
Operating Systems
Middleware
Application Software
By Application:
Infotainment & Telematics
Navigation Systems
Audio/Video Systems
Communication Systems
Body Electronics
Lighting Systems
Access Control Systems
HVAC Systems
Safety & Security
Advanced Driver Assistance Systems (ADAS)
Airbag Control Systems
Electronic Brake Control Systems
Powertrain & Chassis Control
Engine Control Systems
Transmission Control Systems
Suspension Control Systems
By Vehicle Type:
Passenger Cars
Hatchbacks
Sedans
SUVs
Commercial Vehicles
Light Commercial Vehicles (LCVs)
Heavy Commercial Vehicles (HCVs)
By Electric Vehicle:
Battery Electric Vehicles (BEVs)
Fuel Cell Electric Vehicles (FCEVs)
Hybrid Electric Vehicles (HEVs)
Plug-in Hybrid Electric Vehicles (PHEVs)
By Region:
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