Automotive Embedded Systems Market is Anticipated to Witness High Growth owing to Rising Demand for Vehicle Comfort, Safety and Convenience Features
Market Overview
Automotive embedded systems combine mechanical and electronic components to control and monitor various functions in a vehicle such as infotainment, chassis, powertrain and body control systems. These systems ensure vehicle safety, convenience and driving experience through integration of components like sensors, microcontrollers, memory, power management chips and other electronic components. The growing concern for vehicle and passenger safety along with increasing demand for driving comfort features such as navigation, multimedia, rear seat entertainment etc. is propelling the demand for advanced automotive embedded systems globally.
The Global Automotive Embedded Systems Market is estimated to be valued at US$ 10.79 Billion in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period to 2031.
Key Takeaways
Key players operating in the Automotive Embedded Systems are Robert Bosch GmbH, Panasonic Corporation, Toshiba, Continental AG, Denso Corporation, Mitsubishi Electric Corporation,Texas Instruments Incorporated, Infineon Technologies AG, Harman International.
The increasing adoption of driver assistance systems, autonomous driving technologies and rising demand for connectivity applications and services in vehicles provide significant opportunities for Automotive Embedded Systems Market Demand players. Major players are expanding their presence in emerging economies like China, India, Brazil etc. to tap the growing vehicle demand in these regions. Regional expansions and strategic partnerships are key strategies adopted by leading automotive embedded system providers.
Market Drivers
The increasing production of vehicles globally is driving the demand for automotive embedded systems. The rising per capita income and changing consumer preferences towards safety, connectivity and infotainment features in vehicles is positively impacting the market growth. Stringent government safety norms mandating the integration of safety systems like ESP, ABS, and airbags are catalysing the adoption of advanced automotive embedded systems.
Market Restrains
High costs associated with the development of sophisticated automotive embedded system technologies can restrict their adoption in budget-friendly vehicles segments. Cyber security issues and threat of data theft with increasing vehicle connectivity continue to challenge the automotive embedded system providers and act as a market restrain. Component availability and supply chain disruptions due to geopolitical issues also impact the market negatively.
Segment Analysis
The automotive embedded systems market is dominated by the telematics sub-segment. Telematics systems enable car owners to track stolen vehicles and receive emergency roadside assistance. They also provide drivers with real-time traffic and navigation updates. The increasing demand for connectivity features in vehiclesis driving the adoption of telematics embedded systems.
The infotainment systems sub-segment is also growing rapidly. Infotainment systems provide in-vehicle entertainment and information through features like digital radio, GPS navigation, smartphone integration, and rear-seat entertainment displays. As customers expect their in-car experience to be similar to their smartphone experience, automakers are increasingly incorporating advanced infotainment capabilities.
Global Analysis
The Asia Pacific region is expected to experience fastest growth in the automotive embedded systems market due to increasing vehicle production and sales in major countries like China and India. With rapid economic development, rising disposable incomes, and growing focus on safer and more comfortable driving experiences, the demand for vehicles with advanced embedded technology features is surging in Asia Pacific.
Europe is currently the dominant region owing to presence of leading automotive manufacturers and strong focus on vehicle connectivity and autonomous driving technologies among automakers in countries like Germany. However, North America is also experiencing significant growth due to technology advancements by domestic players as well as extensive research on electric and self-driving vehicles.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)