Automotive Embedded Systems Market is Driving Connectivity and Autonomy
Author : vaishnavi cmi | Published On : 26 Nov 2024
The automotive embedded systems market is witnessing rapid adoption of connectivity technologies and advanced driver-assistance systems. Automotive embedded systems comprise electronic controllers that monitor and manage various functions in modern vehicles. These systems integrate software, mechanical components, and sensors to offer features ranging from engine management, infotainment, and connectivity to driver-assistance systems. Advanced embedded modules integrating artificial intelligence and machine learning-based algorithms are enabling autonomous driving capabilities.
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.
Automotive Embedded Systems Market Demand help automakers enhance vehicle performance, safety, and connectivity. Rising electrification of vehicles and demand for advanced driver assistance systems are fueling the adoption of automotive embedded platforms with high processing capabilities.
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. Robert Bosch GmbH and Continental AG hold a major share of the market.
Rising consumer demand for connected vehicles and advanced driver assistance features is a key factor driving the automotive embedded systems market. Emerging trends like vehicle connectivity, autonomous driving, and electrification are prompting automakers to integrated more advanced embedded controllers in vehicles.
Leading embedded system providers are expanding their global footprint by establishing design centers and manufacturing facilities across major automotive hubs to cater to the growing demand from automakers. For instance, in 2021, Infineon Technologies invested USD $2 billion to expand its embedded product manufacturing in Asia and Europe.
Market Key Trends
Integration of artificial intelligence is a key trend in the automotive embedded systems market. AI-powered embedded controllers can monitor driver behavior, road conditions, and vehicle performance in real-time. This data is processed using deep learning algorithms to offer advanced driver assistance features. Growing adoption of AI assistants in vehicles is prompting automakers to integrate more powerful embedded AI accelerators and neural network processors. This is expected to drive innovative driver assistance and autonomous driving applications over the forecast period.
Porter’s Analysis
Threat of new entrants: High investments required for R&D and manufacturing act as a barrier for new companies. Bargaining power of buyers: Large automotive manufacturers have higher bargaining power against embedded system providers. Bargaining power of suppliers: Established embedded system providers have significant bargaining power over automotive companies. Threat of new substitutes: Alternatives like cloud based connectivity solutions offer competition to embedded systems. Competitive rivalry: Intense competition exists between established players to gain market share and expand their product portfolio.
Geographical Regions
North America holds the largest market share in terms of value for automotive embedded systems, primarily driven by the large automotive production volume in the US and Canada. Asia Pacific region is expected to grow at the fastest CAGR during the forecast period due to increasing automotive production and sales in China and India.
The fastest growing regional market for automotive embedded systems is expected to be Asia Pacific, fueled by increasing vehicle ownership, demand for advanced safety and connected features, and expansion of domestic automotive manufacturers offering affordable passenger cars. Countries like China and India serve as major manufacturing hubs and also represent huge potential markets, thereby attracting significant investments by embedded system providers.
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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)
