Automotive Embedded System Market Size - By Type (Software, Hardware), By Vehicle Type (Two-wheeler, Passenger Car, Commercial Vehicles), By Component (Transceivers, Sensors, Memory Devices, Microcontrollers), Application & Global Forecast, 2023 - 2032

Automotive Embedded System Market Size - By Type (Software, Hardware), By Vehicle Type (Two-wheeler, Passenger Car, Commercial Vehicles), By Component (Transceivers, Sensors, Memory Devices, Microcontrollers), Application & Global Forecast, 2023 - 2032

Global automotive embedded system market will showcase an 8% CAGR from 2023 to 2032.

The automotive industry's growing need for advanced driver assistance systems (ADAS) and sophisticated infotainment features will fuel the business of advanced embedded systems. The rise in electric and autonomous vehicles has created a demand for intricately integrated control and connectivity systems, further driving industry expansion. In January 2022, Johnson Electric introduced a comprehensive e-axle solutions package designed for electric vehicles. This package included a variety of features, including safety parking, seamless transition to four-wheel drive mode, and precise detection of the electric drive position, providing a holistic solution for EVs.

Additionally, the need for enhanced fuel efficiency, regulatory compliance, and the trend toward connected car ecosystems will drive market growth. These factors collectively foster innovation, safety, and improved vehicle performance in the automotive industry.

The automotive embedded system market is categorized based on type, vehicle type, enterprise size, application, and region.

Based on type, the embedded hardware segment will depict a commendable CAGR through 2032, driven by factors such as increasing demand for powerful, energy-efficient processors, sensors, and memory solutions. These components are essential for advanced features like ADAS, infotainment, and connectivity in modern vehicles.

The two-wheeler segment is expected to accumulate a sizeable share of the industry by 2032, driven by the increasing adoption of electronic controls, such as anti-lock braking systems (ABS) and electronic fuel injection (EFI), enhancing safety, performance, and fuel efficiency in motorcycles and scooters.

Based on component, the microcontrollers segment will exhibit a substantial CAGR through 2032, driven by the growing need for microcontrollers for real-time processing and control in advanced driver assistance systems (ADAS), electric powertrains, and in-vehicle infotainment systems. Microcontrollers enable efficient data processing and enhanced safety features.

Regionally, the Europe automotive embedded system industry will record a robust CAGR during the analysis period. Stricter regulatory standards for safety and emissions will drive the sales of advanced systems in the region. The rise of electric vehicles, the expansion of the connected car ecosystem, and increasing investments in autonomous driving technology will further drive industry expansion in the region.