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Automotive Embedded System Market Size

Report ID: GMI6495
Published Date: Aug 2023
Report Format: PDF

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Automotive Embedded System Market Size

Automotive Embedded System Market size was valued at USD 29.1 billion in 2022 and is projected to register a CAGR of 8% between 2023 and 2032. Modern vehicles require sophisticated embedded systems to process data from sensors (such as cameras, LiDAR, and radar) and make real-time decisions for features like lane departure warnings, adaptive cruise control, automated parking, and eventually fully autonomous driving. These systems enhance safety, convenience, and overall driving experience.

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For instance, the Mercedez-Benz EQS SUV, launched in September 2023, comes with a Level 2 ADAS system that includes features such as adaptive cruise control, lane centering assist, and blind spot monitoring. It is also available with a Level 3 ADAS system that allows the driver to take their hands off the wheel in certain conditions.

Automotive Embedded System Market Report Attributes
Report Attribute	Details
Base Year:	2022
Automotive Embedded System Market Size in 2022:	USD 29.1 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	8%
2032 Value Projection:	USD 60.5 Billion
Historical Data for:	2018 to 2022
No. of Pages:	220
Tables, Charts & Figures:	334
Segments covered:	Type, Vehicle Type, Enterprise size, Application
Growth Drivers:	Rise in the integration of advanced electronic control units (ECUs) Surge in usage of vehicle-infotainment systems Rapid emergence of autonomous vehicle technology and advanced driver-assist systems Rise in usage of embedded systems in safety systems Increasing technological advancements Surge in application of artificial intelligence (AI) in autonomous vehicle technology to improve the safety and comfort of passengers.
Pitfalls & Challenges:	Complexity and integration concerns Evolving standards and regulations

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Consumer demand for enhanced infotainment, connectivity, and in-car entertainment experiences is propelling the growth of the automotive embedded system market. Vehicles are becoming more connected, offering features like touchscreens, voice recognition, smartphone integration, navigation, and internet connectivity. Embedded systems power these functionalities, providing seamless communication between the vehicle, its components, and external services.

As user expectations for technology-rich driving environments increase, automakers invest in advanced embedded systems to meet these demands. For instance, in November 2022, BMW announced that it would invest ?30 billion in electric vehicles and autonomous technology over the next five years. The company is developing a self-driving car called iNext expected to be launched in 2025.

However, integrating advanced embedded systems in vehicles can increase manufacturing costs due to the need for specialized hardware, software development, and testing. As vehicles become more technologically advanced, the complexity of embedded systems also rises, requiring more resources and expertise for design, implementation, and maintenance. High costs and complexity can deter some manufacturers from adopting or fully integrating advanced embedded systems, especially in lower-priced vehicle segments.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of automotive embedded system reached USD 29.1 billion in 2022 and is set to register 8% CAGR through 2023-2032, due to the growing consumer need for enhanced infotainment, connectivity, and in-car entertainment experiences worldwide.

The software segment recorded 70% of the market share in 2022, impelled by the high demand for advanced driver assistance systems (ADAS), automotive infotainment, connectivity, and autonomous driving.

Asia-Pacific registered 35% share of the automotive embedded system industry in 2022, due to the expanding manufacturing capabilities, technological expertise, and government initiatives in the region.

Some of the influential automotive embedded system companies are Denso, Valeo, Mitsubishi Electric, Infineon Technologies, Continental AG, Texas Instruments, Magna International, Harman International, Toshiba, Hella KGaA Hueck & Cc, and Panasonic.