The automotive embedded system 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.
An automobile embedded system is a computerized system that is built into a car and controls many tasks. It is designed to regulate data and service mechanisms. The automobile embedded system relies heavily on software. The majority of automotive embedded systems are used in automobiles to save energy and reduce emissions, as well as to meet high reliability and safety standards. They also help in meeting the safety, comfort, and cost criteria of end users. Changes in system design and software development, and advancements in integrated services would open up new business prospects.
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Automotive Embedded System Market: Strategic Insights
Market Size Value in US$ 4,483.81 million in 2021 Market Size Value by US$ 7,051.11 million by 2028 Growth rate CAGR of 6.7% from 2021 to 2028 Forecast Period 2021-2028 Base Year 2021
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Automotive Embedded System Market: Strategic Insights
| Market Size Value in | US$ 4,483.81 million in 2021 |
| Market Size Value by | US$ 7,051.11 million by 2028 |
| Growth rate | CAGR of 6.7% from 2021 to 2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Rising demand for electric vehicles across the world, and elevating adoption of embedded systems in electric and hybrid vehicles due to their ability to reduce pollution and improve efficiency are expected to drive growth of the global automotive embedded systems market during the forecast period. Increasing customer attention toward the safety features of automobiles, growing automation in the automotive sector, and government attempts to limit emissions and enhance fuel efficiency are expected to facilitate the growth of the automotive embedded system market during the forecast period. Furthermore, rising demand for connected cars, as well as increased need of sensors and engineering systems in vehicles, is likely to drive the market growth in the coming years.
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.
Impact of COVID-19 Pandemic on Automotive Embedded System Market
The COVID-19 outbreak adversely affected the overall growth rate of global automotive embedded systems market in 2020 to some extent, due to supply and demand disruptions across the automotive value chain. However, with the sudden growth in vaccination drives and continuous updates in COVID-19 safety protocols, the government restrictions are being relaxed, which is likely to boost the production capabilities of both civil and body electronics, thereby normalizing the automotive embedded systems market growth during the forecast period.
Lucrative Regions for Automotive Embedded System Market
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Market Insight
Increasing Demand for Infotainment Drives Automotive Embedded System Market Growth
With the transforming mobility industry, the scope of infotainment systems is expanding to provide car occupants with greater safety features, additional functionality, and entertainment alternatives. Smartphone connectivity allows users to access messages and information through Wi-Fi and Bluetooth connectivity, making it easier to work on the go. These infotainment systems provide a digital experience in vehicles, with digital assistant, several screens, and various input methods. The incorporation of digital interfaces allows automotive suppliers and OEMs to create interfaces that display real-time data in a more suitable manner. The digital interfaces also confer a wider range of functions, allowing manufacturers to perform a number of safety-critical functions, including ADAS.
Type Segment Insights
An embedded system is a combination of hardware and software components, and is based on a microprocessor or microcontroller that is designed to perform certain tasks in the automotive sector. Automobile embedded software allows drivers to record scalable data to get important insights regarding vehicle performance and drivers’ behavior. Embedded automotive software solutions help predict maintenance requirements and avoid automobile accidents. Furthermore, the emergence of connected automobiles is compelling automotive firms to improve their embedded automotive software development capabilities to bridge the gap between a car and a mobility ecosystem, further bringing improvements in vehicle performance based on in-vehicle and beyond-vehicle data. Companies are releasing new software solutions to provide all-around assistance. Intellias provides embedded software services to improve the operation of multimedia systems, in-car networks, telematics, ADAS, body electronics, power train ECU, and transmission ECU components. The vast knowledge of the company allows it to design complicated systems for ECU firmware updates, telematic control unit software, vehicle tracking systems, powertrain controller software, and other comparable systems and components, based on ASPICE-certified methods.
Automotive Embedded System Market, by Type (% Share)
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Component Segment Insights
Based on component, the automotive embedded systems market is segmented into memory devices, microcontrollers, and sensor and drivers. Automobile sensors are cognitive sensors that may be used to regulate and process oil pressure, temperature, pollution levels, coolant levels, and other variables. Several types of sensors are used in automotive, but understanding their operations is critical. Various companies are offering advanced sensors based on application requirements. These sensors collect data needed for vehicle function management, adaption, and reaction, which can be used to improve safety, comfort, and efficiency of the vehicles. Sensors and drivers are used in many modern nervous systems, including automobiles, trucks, buses, and off-road vehicles. Automotive sensors from TE are designed and manufactured as per stringent standards, frequently on a bespoke basis.
Application Segment Insights
Based on application, the automotive embedded systems market is segmented into powertrain & chassis control, body electronics, and multimedia and integrated systems/services. The automotive multimedia and integrated systems (MIDS) are a combination of hardware and software that deliver audio or video entertainment. Automobile navigation systems, video players, USB and Bluetooth connectivity, carputers, in-car internet, and Wi-Fi were among the primary in-car entertainment systems that are compatible with radio players and cassette or CD players. The ICE systems can now feature steering wheel audio controls, handsfree voice control, touch-sensitive preset buttons, and touch displays on higher-end devices, in addition to simple dashboard knobs and dials.
The automotive embedded system market players focus on new product innovations and developments by integrating advanced technologies and features to compete with the competitors. In January 2021, DENSO Corporation and Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, announced a collaboration on next-generation cockpit technologies. DENSO will increase the usability of integrated cockpit systems and in-vehicle infotainment products, as well as develop in-vehicle solution technologies for these systems.
Automotive Embedded System Market – by Type
- Software
- Hardware
Automotive Embedded System Market – by Component
- Memory Devices
- Microcontrollers
- Sensor and Drivers
Automotive Embedded System Market – by Application
- Powertrain & Chassis Control
- Body Electronics
- Multimedia and Integrated Systems/Services
Automotive Embedded System Market – by Region
- North America
- US
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
- Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
- Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
- South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Automotive Embedded System Market – Company Profiles
- Continental AG
- Denso Corporation
- Garmin Ltd.
- Harman International
- INFINEON TECHNOLOGIES AG
- Mitsubishi Electric Corporation
- NXP Semiconductors.
- Panasonic Corporation
- Robert Bosch GmbH
- System Controls Technology Solutions Pvt. Ltd.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Component, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Rising fuel prices and global fossil fuel reserve depletion have prompted a shift to renewable energy sources. Automotive players are manufacturing new electric car models, which are gaining appeal among customers. Furthermore, fleet owners of commercial vehicles are recognizing the cost-savings associated with using electric cars and are replacing their older vehicles with electric vehicles. The reduced operating costs of electric automobiles are a major factor bolstering the global electric vehicle sector, which is, in turn, boosting the automotive embedded system market.
In the last two decades, autonomous driving has progressed from science fiction to a plausible prospect due to significant advancements in the radar technology and computer capability. Further, the portable technology has flourished to the point that ultralight electronics can make judgments based on self-improving algorithms, enabling engineers to emulate human decision-making in the design of autonomous vehicles. Furthermore, the next generation of completely autonomous cars would necessitate extremely intelligent systems that will be significantly more sophisticated than the existing embedded systems. These automobiles would require the functioning of multiple complicated artificial intelligence (AI) software and systems for navigation, road and vehicular awareness, traffic patterns, pedestrian awareness, and danger awareness and assessment systems, among others, on their computing systems. The process of addressing these computational and intelligence needs is likely to give rise to a new generation of embedded processors in the future, which would prove as a significant opportunity for the automotive embedded systems market players during the forecast period.
Based on type, the global automotive embedded system market is segmented into software, and hardware. The automotive embedded system market was dominated by the hardware segment in 2020.
Asia Pacific dominated the automotive embedded system market in 2020 with a share of 45.2% and is expected to continue its dominance by 2028. Europe is the second-largest contributor to the global automotive embedded system market in 2020, followed by North America.
The major companies in 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.
The major applications in automotive embedded system includes powertrain & chassis control, body electronics, multimedia and integrated systems/services. In terms of market share, the market was dominated by the multimedia and integrated systems/services segment in 2020.
The List of Companies - Automotive Embedded Systems Market
- Continental AG
- Denso Corporation
- Garmin Ltd.
- Harman International
- Infineon Technologies AG
- Mitsubishi Electric Corporation
- NXP Semiconductors
- Panasonic Corporation
- Robert Bosch GmbH
- System Controls Technology Solutions Pvt. Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
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- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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