As per MarketsandMarkets™, The automotive embedded system market, in terms of value, is projected to grow at a CAGR of 6.87% from 2017 to 2022. The market was valued at USD 26.33 Billion in 2016. The report “Automotive Embedded System Market by vehicle, electric vehicle, type, component (Sensors, MCU, Transceivers, and Memory Devices), application (Infotainment & Telematics, Body Electronics, and Safety & Security) and Region – Global forecast to 2022”, estimates automotive embedded system market to be USD 27.59 Billion in 2017 and is projected to grow to USD 38.47 Billion by 2022.
According to the report increasing demand for electric vehicles, advanced safety, comfort, and convenience systems, and rising trend of vehicle electrification in the automotive industry are some of the key factors fueling the growth of this market.
Safety & Security segment to hold the largest share of the automotive embedded system market, by application type
The safety & security application is estimated to hold the largest share, by value, of the automotive embedded system market in 2017. The mandatory installation of anti-lock braking systems (ABS) and electronic stability systems in the U.S. and European countries has contributed to the growth of this application.
Likewise report mentions that in India, airbags, ABS, and speed warning system will be mandatory for all cars from October 2018. The growing installation rate of various safety features in vehicles are the key drivers for the safety & security application market.
The sensors component is estimated to hold the largest share of the automotive embedded system market, by component type. The increasing number of electric vehicles and growing trend of vehicle electrification in the automobile industry have driven the growth of the automotive sensors market.
The Asia-Pacific region is estimated to hold the largest share, by value, of the automotive embedded system market in 2017. The demand for automotive embedded system in this region is triggered by increasing vehicle production in developing nations such as China and India and the increasing number of electric vehicles in countries such as China and Japan. The region is also the leading producer of automobiles in the world.