Report : Automotive Embedded System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Software and Hardware), Component (Memory Devices, Microcontrollers, and Sensors and Drivers), and Application (Powertrain & Chassis Control, Body Electronics, and Multimedia and Integrated Systems/Services)
According to our latest market study on “Automotive Embedded System Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Component, and Application,” the market is projected to reach US$ 7,051.11 million by 2028 from US$ 4,483.81 million in 2021; it is expected to grow at a CAGR of 6.7% from 2021 to 2028.
The electrification of transportation has been one of the primary developments of the 21st century. According to Forbes, the global sales of electric vehicles (EVs) increased by 65% from 2017 to 2018, reaching 2.1 million vehicles, and the sales numbers remained stable in 2019. Governments across the world are introducing various policies and taking initiatives to encourage the use of electric cars. Programs such as India's Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme, California's Zero-Emission Vehicle Program, and the European Union's Green Cars Initiative encourage the adoption of electric vehicles by providing subsidies, tax breaks, and other incentives. Many governments have also started a number of projects in collaboration with private businesses to build charging infrastructure. These activities are contributing to the growth of the global electric vehicle industry, thus boosting the demand for embedded systems in the manufacturing of these cars. Rising fuel prices and global fossil fuel reserve depletion are prompting a shift to renewable energy sources. Automotive players are manufacturing new electric car models with a greater appeal. Furthermore, commercial vehicle fleet owners are replacing their older vehicles with electric vehicles to embrace the cost-saving benefits. Further, reductions in the costs of electric automobiles are bolstering the global electric vehicle sector, which is, in turn, boosting the automotive embedded system market.
Based on type, the global automobile embedded system market is segmented into software and hardware. Based on component, the market is segmented into memory devices, microcontrollers, and sensors and drivers. On the basis of application, the automobile embedded system market is segmented into powertrain and chassis control, body electronics, and multimedia and integrated systems/services.
According to the latest situation report from the World Health Organization (WHO), the US, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst-hit countries by the COVID-19 pandemic. In 2020, the world economy suffered significant consequences, and the effects are expected to persist to some extent in the coming years. Automotive production facilities have reduced the scale of their activities due to the shutdown of construction, operations, and maintenance projects at several locations, due to the multiple "stay at home" orders by state governors across the world. The automotive industry has undergone some major changes due to the mandate of complying with social distancing measures; layoffs of technical, construction, and manufacturing personnel; and demobilization of projects. As a result, many automobile companies are struggling to keep up with maintenance and operations. However, the production of the automotive equipment is anticipated to gain pace from 2021, which is further foreseen to positively influence the manufacturing of automotive electronics, including automotive embedded systems.
A few key players operating in the global automotive embedded system market are Robert Bosch GmbH, Continental AG, Panasonic Corporation, Texas Instruments Inc., Mitsubishi Electric Corporation, Denso Corporation, Harman International, Verizon Communications Inc., Intel Corp., and NXP Semiconductors. Several other market players have also been analyzed to understand the market.