The automotive embedded systems are specially designed for automotive applications to control electronic systems across vehicles. Automotive embedded systems help in integrating electronic components, software, and network systems to control engine, transmission, airbags, climate control, navigation, infotainment, and driver assistance functions. They enable additional features and advanced functionalities in vehicles. The rising demand for connected vehicles, active driver assistance features, and self-driving car technology is driving the automotive embedded systems market.
The global Automotive Embedded Systems Market is estimated to be valued at US$ 18.12 billion 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 key trends:
Adoption of cloud computing services is gaining momentum in the automotive embedded systems market. Major automotive OEMs are focusing on integrating cloud computing capabilities into vehicles to enable advanced over-the-air updates and remote diagnostics. Cloud-based platforms help analyze driving habits, vehicle health, and user preferences to enhance driving experience. OEMs are collaborating with tech giants to develop secure cloud platforms for seamless information exchange between vehicles and the cloud. For instance, in 2022, Intel Corporation partnered with BMW to develop dedicated cloud solutions based on the BMW Operating System 7. This collaboration aims to enable highly automated driving through high-performance edge computing in vehicles connected to the cloud.
Threat of new entrants: The automotive embedded systems market requires substantial R&D investments and has well-established players. Therefore, the threat of new entrants is moderate.
Bargaining power of buyers: Automotive OEMs have significant bargaining power as buyers due to their large purchase volumes. However, the availability of several suppliers balances this power.
Bargaining power of suppliers: Major suppliers like chip providers and software developers have moderate bargaining power due to their specialized expertise and technologies.
Threat of new substitutes: There are currently no cost-effective alternatives to automotive embedded systems. Alternative powertrains may slightly reduce demand.
Competitive rivalry: The market has prominent global players and regional specialists competing on technology, quality, and price.
The Global Automotive Embedded Systems Market Growth is expected to witness high over the forecast period. The global Automotive Embedded Systems Market is estimated to be valued at US$ 18.12 billion in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030.
Asia Pacific dominates the market currently due to the large automotive manufacturing bases in China, Japan, and India. North America is another major regional market for automotive embedded systems driven by the presence of leading automakers like Ford and General Motors. The increased focus on autonomous and electric vehicles will boost demand growth in this region.
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. These companies are focusing on developing advanced system-on-chip solutions for applications like ADAS, infotainment, and telematics. Partnerships with automotive OEMs are also allowing them to gain new design wins.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it