by Automotive embedded systems are electronic components and devices used for controlling vehicle functions. They enable features such as infotainment, navigation, safety, and vehicle management. Key advantages include better driver experience, enhanced safety, and accurate diagnostics. Growing demand for connected vehicles has propelled the need for automotive embedded systems to manage critical vehicle monitoring and diagnostic functions.
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 key trends:
The automotive embedded systems market is witnessing increasing focus on advanced driver assistance systems (ADAS) solutions, which offer functionalities such as adaptive cruise control, intelligent park assist systems, and emergency braking. ADAS solutions are becoming a differentiation factor for automakers targeting safety-conscious customers. Furthermore, growing proliferation of electronics in vehicles and constant innovation in infotainment functions is driving semiconductor content growth. New vehicle models are incorporating advanced functionalities such as navigation, Internet connectivity, and over-the-air updates. This is presenting opportunities for embedded system providers to invest in diversified technologies and domains. However, design complexities associated with creating robust and secure connected vehicle architectures remain a key challenge along with evolving cybersecurity threats and regulatory norms.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the automotive embedded systems market is moderate. It requires high initial investments and high switching costs to develop automotive embedded systems.
Bargaining power of buyers: The bargaining power of buyers in the automotive embedded systems market is high as they have multiple options available to choose from. Buyers can negotiate on price and quality of products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers have the threat of forward integration if the OEMs do not agree to the terms of suppliers.
Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for automotive embedded systems which can provide similar functionalities.
Competitive rivalry: The competitive rivalry is high due to presence of many global players providing similar automotive embedded systems. Players focus on product innovation, pricing strategies and partnerships to gain competitive advantage.
Key Takeaways
The Global Automotive Embedded Systems Market is expected to witness high growth during the forecast period of 2023 to 2030. 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.
Regional analysis: North America is expected to dominate the automotive embedded systems market owing to presence of major OEMs and technology leaders in the US and Canada. Asia Pacific is anticipated to grow at a fastest pace due to increasing automobile production and sales in China and India.
Key players: 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 players are focusing on new product launches and partnerships with automakers to strengthen their market position.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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