Automotive embedded systems refer to the combination of hardware and software used in automobiles that perform specific functions which are integrated in different automobile parts. These systems use embedded software and hardware to operate different automobile functions including engine management, entertainment,ABS, steer-by-wire and telematics among others. These embedded systems play a vital role by increasing the safety, comfort and convenience for drivers and passengers. The rising adoption of autonomous, electric and connected cars demand highly advanced automotive embedded systems with advanced features.
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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market Opportunity Connected cars are emerging as one of the largest opportunities for automotive embedded systems market. Connected cars utilizes various sensors, controllers and other smart devices powered by automotive embedded systems. Features like cellular connectivity, navigation, infotainment and engine diagnostics heavily rely on embedded softwares and hardware. As per recent statistics, connected cars are projected to surpass 230 million units by 2023 worldwide. This rapid adoption of connected vehicles requiring advanced automotive embedded systems offers lucrative growth prospects over the forecast period. Porter's Analysis Threat of new entrants: The automotive embedded systems market requires large capital investments and long gestation periods. Hence, the threat of new entrants is moderate. Bargaining power of buyers: Automotive OEMs have significant bargaining power owing to their large procurement volumes. However, specialized skills required limit bargaining power to some extent. Bargaining power of suppliers: A few large suppliers exist for core automotive embedded systems components. This concentrates supplier power. Threat of new substitutes: No significant substitutes exist for automotive embedded systems currently. Alternative powertrain technologies may pose a threat. Competitive rivalry: The market is dominated by a few global players. Intense competition exists on technology differentiation. SWOT Analysis Strengths: Growing vehicle connectivity and automation trends provide opportunities. Post-sales software upgrades can boost recurring revenues. Weaknesses: High R&D costs and replacement cycles affect margins. Supplier consolidation increases dependence on few players. Opportunities: Cooperative intelligent transport systems offer scope for new features. Embedded software platforms see rising use in non-core domains. Threats: Stringent vehicle cybersecurity & safety norms raise compliance burden. Delays in 5G adoption hamper connectivity solutions. Key Takeaways The Global Automotive Embedded Systems Market is expected to witness high growth over the forecast period due to increasing vehicle electrification, connectivity and automation. 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 12% over the forecast period 2023 to 2030. The Asia Pacific region currently dominates the market owing to high vehicle production hubs in China, Japan and India. Europe is also a major market for automotive embedded systems driven by stringent emission regulations. The region is focusing on connected mobility solutions under its smart city initiatives. North America is poised to experience significant growth on the back of evolving autonomous vehicle technologies. U.S. based Tesla and GM are intensively developing self-driving electric cars with advanced embedded systems control. Key players operating in the automotive embedded systems market include Daimler, Siemens, Renault, and Tesla. Focus is on over-the-air updates, open platforms, and cloud connectivity features. suppliers specializing in specific components are Robert Bosch, Continental, and Denso. For more details on the report, Read- https://www.insightprobing.com/automotive-embedded-systems-market-growth/
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