USD 12.3 billion
Embedded Systems in Automobiles Market Size, Share, and Growth Analysis
Embedded Systems in Automobiles Market By Type (Embedded Hardware, Embedded Software), By Component (Sensors, Pressure Sensors), By Vehicle Type, By Electric Vehicle, By Application, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25A2311 |
Region:
Global |
Published Date: January, 2025
Pages:
223
|Tables:
104
|Figures:
71
Format -
Embedded Systems in Automobiles Market Insights
Global Embedded Systems in Automobiles Market size was valued at USD 12.3 billion in 2023 and is poised to grow from USD 13.23 billion in 2024 to USD 23.78 billion by 2032, growing at a CAGR of 7.6% during the forecast period (2025-2032).
The demand for global embedded systems in automobiles market is expected to witness significant growth over the forecast period. Embedded systems are hardware and software that combine to make the machine work perfectly. The main characteristics of these systems are scalability, reliability, power, efficiency, speed and accuracy. These systems are defined as solutions characterized by general purpose and functional specifications so that they can meet real-time constraints. Embedded systems are used in various application areas including rail, aerospace, automotive, electronic payment solutions, aviation and telecommunications. Other factors such as the use of these systems in the automotive industry, increased demand for these embedded graphics systems is expected to boost the growth of embedded systems market. The growing demand for these devices is fueling the rise of embedded software and hardware in the automotive industry. The increasing demand for multimedia features and portable computing devices in the market, such as GPS and parking sensors, is expected to boost the growth of these systems in the market.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Standalone System
Fastest Growth
Real-Time System
Growth Rate
7.6% CAGR
Global Embedded Systems in Automobiles Market ($ Bn)
Country Share for North America Region (%)
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Embedded Systems in Automobiles Market Segments Analysis
Global Embedded Systems in Automobiles Market is segmented by Type, Component, Vehicle Type, Electric Vehicle, Application and region. Based on Type, the market is segmented into Embedded Hardware and Embedded Software. Based on Component, the market is segmented into Sensors, Pressure Sensors, Image Sensors, Radar Sensors, Lidar Sensors, Microcontrollers (MCU), Transceivers and Memory Devices. Based on Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles. Based on Electric Vehicle, the market is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV) and Plug-In Hybrid Electric Vehicle (PHEV). Based on Application, the market is segmented into Infotainment & Telematics, Body Electronics, Powertrain & Chassis Control and Safety & Security. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Function
Real-time embedded systems hold a dominant position in the market. The real-time system of the global embedded systems in automobiles market refers to embedded systems, which require immediate responses and deliberate actions to meet time constraints. Real-time planning installed is necessary for safety-critical purposes such as resistance braking system (ABS), electronic stability control (ESC), and airbag deployment. These systems must respond in critical moments to prevent accidents and ensure passenger safety. Many ADAS products rely on embedded systems in real-time to process sensor data and make split-second decisions to assist drivers in situations, such as driver avoidance, lane departure warnings, and variable handling.
In the global embedded systems in automotive market, the standalone systems segment refers to embedded systems that operate independently within the vehicle, performing specific tasks with minimal reliance on external connectivity. Many vehicles still rely on standalone embedded systems for critical functions such as engine control, transmission management, HVAC (heating, ventilation, and air conditioning) control, etc. These legacy systems are frequently incorporated into vehicles during manufacturing and continue to serve vital functions. Embedded stand-alone systems typically perform mission-critical tasks that require high reliability and responsibility for standardized actions.
Analysis by Application
The automotive segment is dominating the market. This dominance is driven by the increasing complexity of vehicle electronics and the increasing integration of advanced technologies into modern vehicles. Demand for embedded systems is expected to increase with the growth of electric vehicles (EVs), autonomous vehicle technologies and connected vehicle solutions. Furthermore, stringent vehicle regulations safety, emissions and fuel efficiency are driving continuous improvements in embedded in-vehicle systems.
The consumer electronics segment is witnessing tremendous growth in embedded systems in the market, driven by the demand for seamless integration of consumer devices and digital services into vehicles. Consumers expect connectivity, entertainment and conveniences like those found on their smartphones and tablets. As a result, automotive OEMs are increasingly equipping their vehicles with advanced consumer electronics, offering systems that embedded designs for infotainment, telematics and communication systems are gaining momentum.
Global Embedded Systems in Automobiles Market By Function (%)
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Embedded Systems in Automobiles Market Regional Insights
North America is expected to account for the highest revenue over the forecast period owing to the increasing use of hybrid vehicles and growth due to disposable income in the region. North America occupies a dominant position in the global strategies deployed in the automotive market, playing an important role in driving innovation, technological advancement and market growth. North America, particularly the United States, has some of the world's leading automotive OEMs, technology companies and research institutes. This embedded knowledge supports innovation in embedded systems for automotive, and drives advances in areas such as autonomous driving, connected vehicle technologies and electrification.
Asia-Pacific is expected to witness the fastest growth during the forecast period owing to high demand for luxury vehicles. Rising demand for hybrid electric vehicles in these regions and significant changes in the automotive industry are expected to fuel the growth of this market. Asia-Pacific dominates the market in terms of sales and market percentage. This is because of an increase in the profit levels of the purchasers and a growth in the number of electrical cars in this region.
Global Embedded Systems in Automobiles Market By Geography
- Largest
- Fastest
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Embedded Systems in Automobiles Market Dynamics
Embedded Systems in Automobiles Market Drivers
Growing Demand for Advanced Driver Assistance Systems (ADAS)
- The increasing attention on automobile safety and the rising call for functions which includes collision avoidance systems and adaptive cruise manipulate are driving the demand for embedded structures in vehicles. ADAS relies heavily on embedded systems for real-time information processing and selection-making, for that reason propelling market increase.
Rise in Connected Car Technologies
- With the evolution of IoT and linked automobile technologies, embedded structures play a crucial role in allowing communication among automobiles and the external environment. Features like infotainment structures, telematics require state-of-the-art embedded structures, fostering market enlargement.
Embedded Systems in Automobiles Market Restraints
High Development Costs
- Designing and manufacturing vehicle-embedded systems requires significant investments in research and technology. Complex packaging, coupled with the need for strict quality control and compliance with safety standards contribute to high development costs, which can act as a restraint on market growth, especially for players.
Cyber Security Issues
- As vehicles become more connected and rely on embedded systems, cybersecurity threats pose a greater challenge. Hackers targeting embedded systems can compromise vehicle security, privacy, productivity, and law enforcement agencies. Concerns about preventing cybersecurity vulnerabilities, requiring continued deployment money invests in strict security measures, adding complexity and cost to developing an embedded system.
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Embedded Systems in Automobiles Market Competitive Landscape
Nvidia Corporation, a famous semiconductor company known for their expertise at the intersection of AI, autonomous vehicle technology and embedded systems. This strategic partnership enables Tesla to leverage Nvidia's advanced embedded systems to enhance the performance and capabilities of its electric vehicles. With powerful AI software platforms such as Nvidia DRIVE, Nvidia's expertise in GPU technology and AI-powered computing including Tesla's sophisticated autonomous. It could lead to driving features, real-time vehicle navigation, and advanced driver assistance systems (ADAS) that improve safety, efficiency and user experience for Tesla owners.
Top Players in Embedded Systems in Automobiles Market
- Robert Bosch GmbH (Germany)
- Continental AG (Germany)
- Denso Corporation (Japan)
- ZF Friedrichshafen AG (Germany)
- Magna International (Canada)
- Valeo (France)
- Aptiv PLC (Ireland)
- HELLA GmbH & Co. KGaA (Germany)
- Infineon Technologies AG (Germany)
- NXP Semiconductors N.V. (Netherlands)
- Texas Instruments Incorporated (USA)
- Renesas Electronics Corporation (Japan)
- STMicroelectronics N.V. (Switzerland)
- Elektrobit (Germany)
- Vector Informatik GmbH (Germany)
- BlackBerry Limited (Canada)
- Panasonic Corporation (Japan)
- Mitsubishi Electric Corporation (Japan)
- Harman International Industries (USA)
- Visteon Corporation (USA)
Recent Developments
- In June 2021, Zhuhai ENPOWER Electric Co., Ltd announced the first integration of Infineon Technologies AG’s latest 750 V automotive-grade IGBTs. Discrete IGBT EDT2 devices provide efficiency gains and system cost savings in basic inverter applications and electric vehicle DC link discharge switches are also useful if system integration goals have been achieved.
- In January 2022, Johnson Electric launched an all-in-one e-axle solution pack for powerful vehicles. From safety parking to four-wheel drive mode changes to electric driving stop detection, the pack covers all bases.
- In February 2023, Intel announced a partnership with Magna International to develop the next generation of embedded vehicles. The partnership will focus on developing efficient and safe embedded systems for autonomous driving, ADAS and infotainment systems.
Embedded Systems in Automobiles Key Market Trends
- Rise in the Advanced Edge Computing: Edge computing is emerging as a key trend in the automotive industry, with the need for real-time performance and seamless responsiveness in embedded systems. By bringing computing services closer to the data source, edge computing reduces latency downstream, enhances data privacy and security, and improves system-wide operational intelligence. Embedded systems can better manage data processing, decision-making and process management for applications such as autonomous driving and predictive maintenance, resulting in faster response times and an enhanced user experience.
Embedded Systems in Automobiles Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Embedded systems that incorporate hardware and software components integrated into vehicles improve safety, efficiency and connectivity, and provide advanced features such as infotainment systems, driver assistance, autonomous driving capabilities. Automakers develop new embedded system solutions to meet the evolving needs of the auto industry, features strategic collaboration between semiconductors and technology suppliers. Key trends include the adoption of artificial intelligence (AI), machine learning and real-time data analytics atoms to enable intelligent driving and enhance the overall driving experience of embedded systems. As automotive OEMs continue to invest in research and development to meet evolving customer preferences and regulations requirements, the global systems deployed in the market are poised for further growth and technological innovation in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in Automobiles | USD 12.3 billion |
| Market size value in 2032 | USD 23.78 billion |
| Growth Rate | 7.6% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Embedded Systems in Automobiles Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Embedded Systems in Automobiles Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Embedded Systems in Automobiles Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Embedded Systems in Automobiles Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Embedded Systems in Automobiles Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Embedded Systems in Automobiles Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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