Automotive embedded systems consist of microprocessors, sensors and digital and analog inputs/outputs that monitor and control parameters such as engine performance, brake pressure, electronic stability control, parking assistance and in-vehicle infotainment. Such systems help in improving vehicle safety, infotainment and enhance driving experience. The increasing demand for vehicle connectivity and autonomous driving features are driving the demand for advanced automotive embedded systems.
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:
The growing opportunity for connected vehicles and autonomous driving presents a huge growth opportunity for automotive embedded systems market. The integration of vehicle telematics, collision avoidance systems and advanced driver-assistance features require powerful and reliable embedded computing systems. The increasing demand for features such as vehicle-to-vehicle and vehicle-to-infrastructure communication necessitates the need for high-performance automotive embedded systems. The emergence of self-driving vehicles will further augment the demand for embedded systems with enhanced processing power and networking capabilities. The ability of automotive embedded systems to support autonomous driving functionalities is expected to drive their adoption rate over the forecast period.
Porter’s Analysis
Threat of new entrants: The automotive embedded systems market involves high initial capital investment which creates barriers for new companies to enter this market. Established players dominate the market due to strong brand images and economies of scale.
Bargaining power of buyers: There are large automotive companies with substantial buyer power which can negotiate on price and demand better quality and service. The presence of substitute products also gives power to buyers.
Bargaining power of suppliers: Key components required are supplied by few specialized players giving them bargaining power over companies. Suppliers can also integrate vertically posing threat to existing players.
Threat of new substitutes: New technologies like autonomous driving and connectivity features pose threat of substitution to traditional automotive systems over long run.
Competitive rivalry: The market is dominated by global technology giants and establishment of industry standards leads to high competition.
SWOT Analysis
Strength: Automotive embedded systems enable advanced safety, infotainment and vehicle control features. Established global players have robust R&D capabilities and technical expertise.
Weakness: High initial investments and long return on investment period. Rapid changes in technology require continuous upgrades and introduce vulnerabilities.
Opportunity: Growth in autonomous and electric vehicles to drive opportunities. Connected mobility services will boost demand for advanced systems.
Threats: Stringent regulations around vehicle safety and data protection. Economic slowdowns can impact automotive sales.
Key Takeaways
The Global Automotive Embedded Systems Market Size 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.
Regional demand is fastest in Asia Pacific due to large vehicle production clusters in China, India, and Japan. By 2030, the APAC regional market is expected to account for over 40% of the global automotive embedded systems industry revenue. The Asia Pacific automotive embedded systems market is the largest and fastest growing regional market. Countries like China, India, Japan, and South Korea have strong automotive manufacturing clusters and increasing vehicle parc. OEMs are focusing on developing autonomous and electric vehicles for these regions which is driving the adoption of advanced automotive embedded systems..
Key players operating in the automotive embedded systems market are Diadem srl., Proteomedix, Cleveland Diagnostics, F. Hoffmann-La Roche Ltd, GENFIT, Nutech Cancer Biomarkers India Pvt Ltd, SysmOex Corporation, Minomic, Creative Diagnostics, Eisai Co., Ltd., and C2N Diagnostics. These established automotive technology companies offer customized embedded solutions for advanced vehicle functions.
For More Insights, Read: https://www.trendingwebwire.com/automotive-embedded-systems-market-demand-growth-and-regional-outlook-by-2030/
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