The global Automotive Embedded Systems Market is estimated to be valued at US$ 18.12 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive embedded systems refer to computational components (processors, memory, storage) installed into vehicles to add features and functions. They allow communication between vehicles & infrastructure, enhance vehicle performance with features like traction control and stability programs. Automotive embedded systems improve vehicle safety, comfort, and efficiency through ADAS, infotainment, telematics and connected services.
Market key trends:
ADAS features such as adaptive cruise control, lane keep assist, automatic braking are being increasingly adopted to reduce road accidents. Further, telematics solutions are witnessing high demand. Automakers are equipping vehicles with telematics control units to enable services such as vehicle diagnostics, navigation, emergency assistance, and predictive maintenance via connectivity solutions. Growing preference for connected vehicles and stringent safety regulations are pushing automakers to extensively use automotive embedded systems and semiconductors for safety critical and ADAS applications.
Porter’s Analysis
Threat of new entrants: The automotive embedded systems market requires high investments in R&D and manufacturing which poses a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players providing automotive embedded systems. However, differentiated products give buyers more options.
Bargaining power of suppliers: Suppliers of components like processors, sensors have some bargaining power due to their technical expertise and capabilities. However, presence of substitute components limits their power.
Threat of new substitutes: Threat of substitution is low as automotive embedded systems have features tailored for automotive use and no direct replacement exists.
Competitive rivalry: The market is highly competitive due to presence of global established players and companies focusing on technology innovation.
SWOT Analysis
Strength: Established global player base with technical expertise and economies of scale. Growing demand for connected and autonomous vehicles presents large market opportunity.
Weakness: High R&D investments and costs involved. Dependence on semiconductor chip supplies exposes to raw material price volatility.
Opportunity: Scope for developing enhanced driver-assistance and self-driving systems. Governments support development of smart transportation infrastructure.
Threats: Stringent safety and security standards increase compliance costs. Electric vehicles require different embedded system architecture posing transition challenges.
Key Takeaways
The Global Automotive Embedded Systems Market Size is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing integration of advanced driver-assistance systems and transition towards electric mobility.
Regionally, Asia Pacific dominated the market in 2023 attributed to large vehicle production from China, Japan and India. Thanks to presence of key automakers and electronic parts suppliers, the region is likely to retain its leading position through 2030 backed by growing electronics and automotive industries.
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, and Harman International. Companies are investing in development of domain controllers, body controls and powertrain control units for autonomous and electric vehicles.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it