The global Automotive Embedded System market was valued at around US$ 4.5 Billion in 2021. With a projected CAGR of 5.5% for the next ten years, the market is likely to reach a valuation of nearly US$ 8.2 Billion by the end of 2032. Over the last few years, the number of computer-based functionalities embedded in automobiles has increased at an exponential rate.
To allow that evolution development procedures, methodologies, and tools have evolved as well. Today's automobiles include a wide range of electronic functions and adaptive control, including navigation, traffic information, stabilization control, and active safety systems are expected to generate revenue for the automotive Embedded System Market.
Report Attributes | Details |
---|---|
Estimated Market Value (2022E) | US$ 4.8 Billion |
Forecasted Market Value (2032F) | US$ 8.2 Billion |
Global Market Growth Rate (2022 to 2032) | 5.5% CAGR |
North America Market Size (2021) | US$ 1.6 Billion |
United States Growth Rate (2022 to 2032) | 4.8% CAGR |
Key Companies Covered |
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Future Market Insights’ analysis reveals that in 2022 revenue through the Automotive Embedded System Market is estimated at US$ 4.8 Billion. Many embedded system functions are not stand-alone in the sense that they must communicate information with other functions, sometimes under stringent time constraints.
Embedded electronics, and more specifically embedded software, have been growing at a 10% annual pace over the previous years. This has been the revenue multiplier, particularly in the software segment.
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The global market for Automotive Embedded Systems expanded at a CAGR of 6.7% over the last four years (2017 to 2021). A typical vehicle contains around 25-35 microcontrollers, and some luxury vehicles contain approximately 60-70 microcontrollers per vehicle. This is bound to increase in the future providing ample opportunity for market growth.
The global Automotive Embedded System Market is predicted to surge ahead at a CAGR of 5.5%. USA will continue to be the largest user of Automotive Embedded Systems throughout the analysis period accounting for over US$ 1 Billion absolute dollar opportunity in the coming 10-year period.
State regulations impose sophisticated control laws that can only be achieved with computer-based systems, such as restricting exhaust emissions or mandating active safety devices such as airbags.
Secondly, customers want more comfortable, easy-to-drive, and safe cars, and automakers want to provide more innovative goods; both are expensive. Today's rapidly evolving software technology appears to offer a reasonable balance of cost and product development.
While the system's total complexity grows, the players engaged attempt to reduce development time, requiring even more time. This explains why, despite the economic pressures, they have agreed to collaborate to design standard components and reference architecture that will assist to reduce total development time and costs. The Automotive Embedded System Market will benefit as a result of this.
The cost of an electronic embedded system accounted for at least 25% of a car's overall cost, and more than 35% for a high-end model. Electronic technology has advanced to the point that the quality of electronic components, in terms of performance, robustness, and dependability, now allows them to be used in critical systems. At the same time, as electronic technology becomes more affordable, it may be employed to assist every function in an automobile.
Several automotive-embedded networks, such as local interconnect networks (LIN), have been developed in the recent decade. This gave rise to the concept of multiplexing, which has several advantages, the most important of which is a large reduction in wiring costs as well as increased flexibility for manufacturers.
The rise in labor costs will also add to the automotive embedded system market's overall expansion. Salaries are predicted to climb between 2-6% yearly by 2030, depending on skill set, with domain specialists and highly trained developers at the higher end of the range.
One of the automotive industry's prominent issues is to develop methods and tools to make the integration of different electronic subsystems from multiple suppliers and OEMs into the vehicle's global electronic architecture. This generalized framework would positively impact the global automotive embedded system market but there has been very little consensus achieved by OEMs on this issue. It remains a key roadblock for the market at present.
In the last 10 years, several industry-wide projects have been undertaken to build an accepted open software architecture, as well as the associated development processes and tools, which should allow for easily integrating the different functions and ECUs provided by carmakers and third-party suppliers. This has been carried out at the national level.
All of the functions in a car do not have the same performance or safety requirements, and varying levels of service are expected from the various subsystems. In most cases, an embedded system in an automobile is divided into many functional domains that correspond to various features and limitations.
The power train and the chassis are two of them that are primarily concerned with real-time control and safety in the vehicle's behavior. Technical solutions for these safety-critical areas must ensure that the system is dependable while also being cost-effective. This poses a significant difficulty for manufacturers.
These technical issues are more difficult to solve now that X-by-wire functions have been introduced which replace mechanical or hydraulic systems like braking and steering with electronic systems. Electronic system failure has resulted in a growing frequency of breakdowns. According to the data, such issues were the cause of 49.2% of car failures.
The North America Embedded System market accounts for 41.4% of the global Automotive Embedded System market share and over the forecast period, it will have US$ 3.3 Billion in revenue by 2032. The design process is based on significant collaboration among various stakeholders, including suppliers, carmakers, and research institutions, and it incorporates a concurrent engineering approach.
In North America, carmakers provide the specification for the subsystems directly to a dedicated research center, which, in turn, competes to find a solution for these carmakers. The chosen suppliers are then in charge of the realization of these subsystems, including the software as well as hardware components.
The results are furnished to the carmakers, or original equipment manufacturers, who install them into the car as an end product. The entire process has robust integration which is facilitated by governments in North America, unlike in other regions. Hence North America has a promising future in the Automotive Embedded System Market.
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USA Will account for over 2.8 Billion of the global Automotive Embedded System Market by 2032. Automotive Embedded System Market growth in the country from 2017 to 2021 was estimated at 6.4% CAGR. In USA, the suppliers cannot be considered independent from the carmakers.
The better integration of the embedded systems market between research facilities, supplier, and car makers have enabled the country to deliver with greater speed resulting in the dominant market share in the Embedded System Market.
The revenue of the software segment expanded at a CAGR of 6.5% over the last four years. With a projected CAGR of 5.2% for the next ten years. Software-based systems are increasingly controlling wipers, lights, doors, windows, seats, and mirrors.
They are not subject to strict performance limits in general, and they are not a key aspect of the system from a safety standpoint. The need to increase target functionality and tailor core software for a wide range of automobiles is a key driver of the Automotive Embedded System Market's projected growth.
The rise of the overall development effort in the coming decade is mirrored in the increase in the number of software developers, which is expected to reach approximately 250 thousand by 2030. As the number of software engineers grows, the market's labor distribution will most certainly vary. As a result, the product will have a global reach.
At present, Automotive Embedded system manufacturers are largely aiming at setting up collaboration and research facilities, investing in manufacturing, and launching innovative products.
The key companies operating in the Automotive Embedded system market include Continental AG, Denso Corporation, Garmin Ltd., Harman International, Infineon Technologies AG, Robert Bosch GmbH, Delphi Technologies, Mitsubishi Electric Corporation, Johnson Electric Holdings Limited, NXP Semiconductor, Texas Instruments Incorporated, Panasonic, Aptiv, Verizon, NXP Semiconductors, NVIDIA Corporation, Analog Devices, Inc, Atmel Corporation, Intel Corporation, Renesas Electronics Corporation, Microsoft Corporation, Samsung Electronics Corporation Analog Devices Inc., Kontron AG, Advantech Co. Ltd., ARM Limited, Fujitsu Limited, Microchip Technology Inc., Xilinx, STMicroelectronics, Sierra Wireless, and Zhuhai ENPOWER Electric Co.
Some of the recent developments by key providers of the Automotive Embedded System market are as follows:
Similarly, recent developments related to companies manufacturing Automotive Embedded Systems have been tracked by the team at Future Market Insights, which is available in the full report.
The global Automotive Embedded System Market was valued at US$ 4.5 Billion in 2021.
The Automotive Embedded System market is set to witness a growth rate of 5.5% over the forecast period and be valued at US$ 8.2 Billion by 2032.
The Automotive Embedded System Market expanded by 6.7% from 2017 through 2021.
The key players in the automotive embedded system market are Continental AG, Denso Corporation, Garmin Ltd., and Harman.
The United States, United Kingdom, China, Japan, and South Korea are expected to drive the most sales growth of Automotive Embedded Systems.
1. Executive Summary | Automotive Embedded System Market 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 4.1. Historical Market Size Value (US$ Billion) Analysis, 2017 to 2021 4.2. Current and Future Market Size Value (US$ Billion) Projections, 2022 to 2032 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Billion) Analysis By Type, 2017 to 2021 5.3. Current and Future Market Size Value (US$ Billion) Analysis and Forecast By Type, 2022 to 2032 5.3.1. Software 5.3.2. Hardware 5.4. Y-o-Y Growth Trend Analysis By Type, 2017 to 2021 5.5. Absolute $ Opportunity Analysis By Type, 2022 to 2032 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Component 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Billion) Analysis By Component, 2017 to 2021 6.3. Current and Future Market Size Value (US$ Billion) Analysis and Forecast By Component, 2022 to 2032 6.3.1. Memory Devices 6.3.2. Microcontrollers 6.3.3. Sensor and Drivers 6.4. Y-o-Y Growth Trend Analysis By Component, 2017 to 2021 6.5. Absolute $ Opportunity Analysis By Component, 2022 to 2032 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Billion) Analysis By Application, 2017 to 2021 7.3. Current and Future Market Size Value (US$ Billion) Analysis and Forecast By Application, 2022 to 2032 7.3.1. Powertrain & Chassis Control 7.3.2. Body Electronics 7.3.3. Multimedia and Integrated Systems/Services 7.4. Y-o-Y Growth Trend Analysis By Application, 2017 to 2021 7.5. Absolute $ Opportunity Analysis By Application, 2022 to 2032 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Billion) Analysis By Region, 2017 to 2021 8.3. Current Market Size Value (US$ Billion) Analysis and Forecast By Region, 2022 to 2032 8.3.1. North America 8.3.2. Latin America 8.3.3. Europe 8.3.4. Asia Pacific 8.3.5. Middle East and Africa 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9.1. Historical Market Size Value (US$ Billion) Trend Analysis By Market Taxonomy, 2017 to 2021 9.2. Market Size Value (US$ Billion) Forecast By Market Taxonomy, 2022 to 2032 9.2.1. By Country 9.2.1.1. United Kingdom. 9.2.1.2. Canada 9.2.2. By Type 9.2.3. By Component 9.2.4. By Application 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Type 9.3.3. By Component 9.3.4. By Application 9.4. Key Takeaways 10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10.1. Historical Market Size Value (US$ Billion) Trend Analysis By Market Taxonomy, 2017 to 2021 10.2. Market Size Value (US$ Billion) Forecast By Market Taxonomy, 2022 to 2032 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Type 10.2.3. By Component 10.2.4. By Application 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Type 10.3.3. By Component 10.3.4. By Application 10.4. Key Takeaways 11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11.1. Historical Market Size Value (US$ Billion) Trend Analysis By Market Taxonomy, 2017 to 2021 11.2. Market Size Value (US$ Billion) Forecast By Market Taxonomy, 2022 to 2032 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. United Kingdom 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Europe 11.2.2. By Type 11.2.3. By Component 11.2.4. By Application 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Type 11.3.3. By Component 11.3.4. By Application 11.4. Key Takeaways 12. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12.1. Historical Market Size Value (US$ Billion) Trend Analysis By Market Taxonomy, 2017 to 2021 12.2. Market Size Value (US$ Billion) Forecast By Market Taxonomy, 2022 to 2032 12.2.1. By Country 12.2.1.1. China 12.2.1.2. Japan 12.2.1.3. South Korea 12.2.1.4. Malaysia 12.2.1.5. Singapore 12.2.1.6. Australia 12.2.1.7. Rest of Asia Pacific 12.2.2. By Type 12.2.3. By Component 12.2.4. By Application 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Type 12.3.3. By Component 12.3.4. By Application 12.4. Key Takeaways 13. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13.1. Historical Market Size Value (US$ Billion) Trend Analysis By Market Taxonomy, 2017 to 2021 13.2. Market Size Value (US$ Billion) Forecast By Market Taxonomy, 2022 to 2032 13.2.1. By Country 13.2.1.1. GCC Countries 13.2.1.2. South Africa 13.2.1.3. Israel 13.2.1.4. Rest of Middle East and Africa 13.2.2. By Type 13.2.3. By Component 13.2.4. By Application 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Type 13.3.3. By Component 13.3.4. By Application 13.4. Key Takeaways 14. Key Countries Market Analysis 14.1. United Kingdom 14.1.1. Pricing Analysis 14.1.2. Market Share Analysis, 2021 14.1.2.1. By Type 14.1.2.2. By Component 14.1.2.3. By Application 14.2. Canada 14.2.1. Pricing Analysis 14.2.2. Market Share Analysis, 2021 14.2.2.1. By Type 14.2.2.2. By Component 14.2.2.3. By Application 14.3. Brazil 14.3.1. Pricing Analysis 14.3.2. Market Share Analysis, 2021 14.3.2.1. By Type 14.3.2.2. By Component 14.3.2.3. By Application 14.4. Mexico 14.4.1. Pricing Analysis 14.4.2. Market Share Analysis, 2021 14.4.2.1. By Type 14.4.2.2. By Component 14.4.2.3. By Application 14.5. Rest of Latin America 14.5.1. Pricing Analysis 14.5.2. Market Share Analysis, 2021 14.5.2.1. By Type 14.5.2.2. By Component 14.5.2.3. By Application 14.6. Germany 14.6.1. Pricing Analysis 14.6.2. Market Share Analysis, 2021 14.6.2.1. By Type 14.6.2.2. By Component 14.6.2.3. By Application 14.7. United Kingdom 14.7.1. Pricing Analysis 14.7.2. Market Share Analysis, 2021 14.7.2.1. By Type 14.7.2.2. By Component 14.7.2.3. By Application 14.8. France 14.8.1. Pricing Analysis 14.8.2. Market Share Analysis, 2021 14.8.2.1. By Type 14.8.2.2. By Component 14.8.2.3. By Application 14.9. Spain 14.9.1. Pricing Analysis 14.9.2. Market Share Analysis, 2021 14.9.2.1. By Type 14.9.2.2. By Component 14.9.2.3. By Application 14.10. Italy 14.10.1. Pricing Analysis 14.10.2. Market Share Analysis, 2021 14.10.2.1. By Type 14.10.2.2. By Component 14.10.2.3. By Application 14.11. Rest of Europe 14.11.1. Pricing Analysis 14.11.2. Market Share Analysis, 2021 14.11.2.1. By Type 14.11.2.2. By Component 14.11.2.3. By Application 14.12. China 14.12.1. Pricing Analysis 14.12.2. Market Share Analysis, 2021 14.12.2.1. By Type 14.12.2.2. By Component 14.12.2.3. By Application 14.13. Japan 14.13.1. Pricing Analysis 14.13.2. Market Share Analysis, 2021 14.13.2.1. By Type 14.13.2.2. By Component 14.13.2.3. By Application 14.14. South Korea 14.14.1. Pricing Analysis 14.14.2. Market Share Analysis, 2021 14.14.2.1. By Type 14.14.2.2. By Component 14.14.2.3. By Application 14.15. Malaysia 14.15.1. Pricing Analysis 14.15.2. Market Share Analysis, 2021 14.15.2.1. By Type 14.15.2.2. By Component 14.15.2.3. By Application 14.16. Singapore 14.16.1. Pricing Analysis 14.16.2. Market Share Analysis, 2021 14.16.2.1. By Type 14.16.2.2. By Component 14.16.2.3. By Application 14.17. Australia 14.17.1. Pricing Analysis 14.17.2. Market Share Analysis, 2021 14.17.2.1. By Type 14.17.2.2. By Component 14.17.2.3. By Application 14.18. Rest of Asia Pacific 14.18.1. Pricing Analysis 14.18.2. Market Share Analysis, 2021 14.18.2.1. By Type 14.18.2.2. By Component 14.18.2.3. By Application 14.19. GCC Countries 14.19.1. Pricing Analysis 14.19.2. Market Share Analysis, 2021 14.19.2.1. By Type 14.19.2.2. By Component 14.19.2.3. By Application 14.20. South Africa 14.20.1. Pricing Analysis 14.20.2. Market Share Analysis, 2021 14.20.2.1. By Type 14.20.2.2. By Component 14.20.2.3. By Application 14.21. Israel 14.21.1. Pricing Analysis 14.21.2. Market Share Analysis, 2021 14.21.2.1. By Type 14.21.2.2. By Component 14.21.2.3. By Application 14.22. Rest of Middle East and Africa 14.22.1. Pricing Analysis 14.22.2. Market Share Analysis, 2021 14.22.2.1. By Type 14.22.2.2. By Component 14.22.2.3. By Application 15. Market Structure Analysis 15.1. Competition Dashboard 15.2. Competition Benchmarking 15.3. Market Share Analysis of Top Players 15.3.1. By Regional 15.3.2. By Type 15.3.3. By Component 15.3.4. By Application 16. Competition Analysis 16.1. Competition Deep Dive 16.1.1. Continental AG 16.1.1.1. Overview 16.1.1.2. Product Portfolio 16.1.1.3. Profitability by Market Segments 16.1.1.4. Sales Footprint 16.1.1.5. Strategy Overview 16.1.1.5.1. Marketing Strategy 16.1.2. Denso Corporation 16.1.2.1. Overview 16.1.2.2. Product Portfolio 16.1.2.3. Profitability by Market Segments 16.1.2.4. Sales Footprint 16.1.2.5. Strategy Overview 16.1.2.5.1. Marketing Strategy 16.1.3. Garmin Ltd. 16.1.3.1. Overview 16.1.3.2. Product Portfolio 16.1.3.3. Profitability by Market Segments 16.1.3.4. Sales Footprint 16.1.3.5. Strategy Overview 16.1.3.5.1. Marketing Strategy 16.1.4. Harman International 16.1.4.1. Overview 16.1.4.2. Product Portfolio 16.1.4.3. Profitability by Market Segments 16.1.4.4. Sales Footprint 16.1.4.5. Strategy Overview 16.1.4.5.1. Marketing Strategy 16.1.5. Infineon Technologies 16.1.5.1. Overview 16.1.5.2. Product Portfolio 16.1.5.3. Profitability by Market Segments 16.1.5.4. Sales Footprint 16.1.5.5. Strategy Overview 16.1.5.5.1. Marketing Strategy 16.1.6. Mitsubishi Electric Corporation 16.1.6.1. Overview 16.1.6.2. Product Portfolio 16.1.6.3. Profitability by Market Segments 16.1.6.4. Sales Footprint 16.1.6.5. Strategy Overview 16.1.6.5.1. Marketing Strategy 16.1.7. NXP Semiconductors 16.1.7.1. Overview 16.1.7.2. Product Portfolio 16.1.7.3. Profitability by Market Segments 16.1.7.4. Sales Footprint 16.1.7.5. Strategy Overview 16.1.7.5.1. Marketing Strategy 16.1.8. Panasonic Corporation 16.1.8.1. Overview 16.1.8.2. Product Portfolio 16.1.8.3. Profitability by Market Segments 16.1.8.4. Sales Footprint 16.1.8.5. Strategy Overview 16.1.8.5.1. Marketing Strategy 16.1.9. Robert Bosch GmbH 16.1.9.1. Overview 16.1.9.2. Product Portfolio 16.1.9.3. Profitability by Market Segments 16.1.9.4. Sales Footprint 16.1.9.5. Strategy Overview 16.1.9.5.1. Marketing Strategy 16.1.10. System Controls Technology Solutions Pvt. Ltd. 16.1.10.1. Overview 16.1.10.2. Product Portfolio 16.1.10.3. Profitability by Market Segments 16.1.10.4. Sales Footprint 16.1.10.5. Strategy Overview 16.1.10.5.1. Marketing Strategy 17. Assumptions & Acronyms Used 18. Research Methodology
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