Published by Coherent Market Insights
Posted on September 22, 2021
5 min readLast updated: February 3, 2026
The Automotive Embedded Systems market is set to grow, driven by vehicle electrification trends, with a projected value of $40.85 billion by 2027.
United States/WA: The global Automotive Embedded Systems market is estimated to account for US$ 40.85 Billion by 2027
Report Pages:[180 Pages]
Competitive Landscape:
Key players operating in the Global Automotive Embedded Systems Market are Johnson Electric, NXP Semiconductors N.V., Harman International, Infineon Technologies AG, Continental, Texas Instruments Incorporated, Delphi Automotive LLP, Mitsubishi Electric Corporation, Denso Corporation, Panasonic Corporation, and Robert Bosch GmbH.
Overview:
Global Automotive Embedded Systems Market, by Product Type (Embedded Hardware and Embedded Software), by Component (Sensors, Microcontroller Unit (MCU), Transceivers, and Integrated Circuits), by Vehicle Type (Internal Combustion Engines (Diesel and Gasoline Vehicles) and Electric Vehicles (BEV, HEV, and PHEV)), by Application (Electrical and Electronics, Infotainment and Telematics, Powertrain and Chassis, and Advanced Driver Assistance Systems), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) – Size, Share, Outlook, and Opportunity Analysis 2019 – 2027
The global automotive embedded systems market is estimated to be valued at US$ XX million in XXX and is expected to exhibit a CAGR of XX% over the forecast period (2019 – 2027), as highlighted in a new report published by Coherent Market Insights.
Market Overview:
An automotive embedded system is an electronic/computer system designed to control, access the data in electronics based systems installed in vehicles. Nowadays the usage of embedded systems in the automotive industry is widespread. The most used embedded system in a vehicle includes telematics, airbag, adaptive cruise control, traction control, climate control, navigation systems, parking system, emission control system, anti-lock braking system, radio, collision sensors, in-vehicle entertainment system, etc.
An embedded system is designed to run on its own without human intervention. The system is designed to provide rugged operating ranges, low power consumption, and low per-unit cost. The increased demand for smarter and power-efficient automobiles has created the need for embedded systems in the automotive industry.
Key Market Drivers:
Increasing demand for electric vehicles around the world is expected to augment the growth of the automotive embedded systems market during the forecast period. Embedded systems are widely used in electric vehicles to reduce pollution and enhance efficiency. According to the International Energy Agency (IEA), there could be 230 million electric vehicles worldwide by 2030 if governments agree to encourage the production of low-carbon vehicles to stay within global climate targets.
Moreover, rising CO2 emission, increasing global warming, increasing fuel prices, and scarcity of conventional fuels are some major factors expected to propel the growth of the automotive embedded systems market. For instance, the European Union (EU) implemented mandatory fleet wide average CO2 standards, introduced under Regulation (EC) 443/2009, to achieve goal of 95 grams carbon dioxide/km, measured in NEDC, by 2021.
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Key Takeaways
The automotive embedded systems market is expected to exhibit a CAGR of XX % during the forecast period owing to the rise in investment by automotive manufacturers for vehicle electrification. For instance, Mercedes-Benz planned to invest more than 40 billion euros, or US$ 47 billion, between 2022 and 2030, to develop electric vehicles, and be ready for an all-electric car market by 2030.
Among regions, North America and Europe are expected to witness robust growth in the automotive embedded systems market due to rise in demand for electric vehicles, advent of autonomous vehicles, and increasing awareness about vehicle security in these region. For instance, according to the Edison Electric Institute, in the United States, the number of electric vehicles is expected to reach 18.7 million in 2030.
Asia Pacific is expected to witness robust growth in the automotive embedded systems market due to the rapid growth of the automotive industry and government initiatives for vehicle electrification. In India, adoption of electric vehicles is expected to increase with commercial vehicles rather than in passenger vehicle space. Moreover, the government aims to make India 100% electric-vehicle nation by 2030.
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COVID-19 Impact Analysis:
The COVID-19 has turned into a global crisis, evolved at unprecedented speed and scale. The pandemic has had a swift and severe impact on the automotive industry. Therefore, industry is experiencing intense pressure due to manufacturing interruptions, disruption in parts exports, and the closure of assembly plants. However, now, China is coming back faster than normal, and thus, it is expected that the supply chain will be back on the track soon. Meanwhile, China continues to rebound, with the aim of selling around 30 million new vehicles by 2025. This in turn is expected to aid in the growth of the market.
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The post Automotive Embedded Systems Market Growth Driven by the Rising Trend of Vehicle Electrification appeared first on Gatorledger.
The main topic is the growth of the Automotive Embedded Systems market driven by vehicle electrification.
Increasing demand for electric vehicles and rising CO2 emissions are key drivers.
Key players include Johnson Electric, NXP Semiconductors, and Harman International.
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