Automotive Embedded Systems Market To Surpass USD 108.17 Billion By 2032 SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) Growing integration of AI-driven vehicle systems and demand for real-time diagnostics are accelerating the adoption of Automotive Embedded Systems across all vehicle classes.

Austin, June 17, 2025 (GLOBE NEWSWIRE) -- The Automotive Embedded Systems Market Size was valued at USD 54.61 billion in 2024 and is expected to reach USD 108.17 billion by 2032, growing at a CAGR of 8.93% over the forecast period of 2025-2032.

Technological Evolution and Regulatory Focus Drive Surge in Automotive Embedded Systems

An increase in integrated use of ADAS connectivity and infotainment technology is driving the growth of the Automotive Embedded Systems market. From 2022 to 2024, the U.S. experienced a 15% uptick in vehicles with inbuilt safety systems. Carmakers like Ford, GM, chipmakers such as NXP and Texas Instruments will see a combined embedded R&D spending of more than $2B and a strong revenue growth. Regulatory requirements and consumer desire for enhanced in-car capabilities are also driving market adoption and advancement.

The U.S. Automotive Embedded Systems market has a market share of about 60%, growing at a significant CAGR over the forecast period of 2025-2032.

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The US Automotive Embedded Systems market is emerging due to the increasing safety regulations and the increasing penetration of connected car technologies. National agencies such as NHTSA have also put forward a set of Vehicle Safety Standards (VSS) with significant coverage of embedded system-based ADAS and telematics. Companies such as Delphi Technologies and Aptiv unveiled next-gen embedded hardware/software platforms to boost vehicle automation, connectivity, and security, pushing the market scope.

By Region, North America dominated the Automotive Embedded Systems Market in 2024, Holding A Major Market Share.

The dominance is due to major OEMs and semiconductor companies, and tight vehicle safety regulations by the likes of NHTSA and the EPA. ADAS and connected car technology are quickly being adopted in the region due to the investments of Ford, GM, and Qualcomm, among others. The Strong R&D structure, supportive government initiatives, and growing consumer interest in smart vehicles have resulted in the increased demand for advanced automotive embedded systems in the North American market.

Automotive Embedded Systems Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 54.61 billion
Market Size by 2032	USD 108.17 billion
CAGR	CAGR of 8.93% From 2024 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Type (Embedded Hardware, Embedded Software) . By Component (Sensors, (Temperature Sensors, Pressure Sensors, Image Sensors, Radar Sensors, Lidar Sensors), Microcontrollers (MCU), Transceivers, Memory Devices) . By Vehicle Type (Passenger Cars, Commercial Vehicles) . By Electric Vehicle (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), and Plug-In Hybrid Electric Vehicle (PHEV)) . By Application (Infotainment & Telematics, Body Electronics, Powertrain & Chassis Control (Automatic Transmission, Electric Power Steering, Active Suspension), Safety & Security (ADAS, Electronic Brake System (Antilock Brake System (ABS), Electronic Stability Control (ESC), Traction Control System (TCS)), Airbags)

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Key Industry Segmentation

By Type , the Embedded Software dominated the Automotive Embedded Systems Market in 2024 with a 59.2% Market Share.

The dominance is resulting from the proliferation of vehicle functions adopting software, such as ADAS, infotainment, and diagnostics, and their escalating demand for software updates. Automakers , including Tesla and Ford, highlight the addition of software updates that can improve performance and safety. The Rise of connected and autonomous vehicles is anticipated to largely increase the adoption of embedded software, owing to the advent of AI and real-time data processing that supports vehicle intelligence and responsiveness.

By Vehicle Type, Passenger Cars dominated the Automotive Embedded Systems Market in 2024 with a 72.5% Market Share.

Attributed to the demand for technologically advanced personal vehicles, which have inbuilt SIT features that include safety features, infotainment, and telematics. Automobile manufacturers such as General Motors and Toyota are instrumenting, in their vehicles' embedded systems, with advanced features aimed at enhanced safety and driving experience. The adoption of electric vehicles is further driving this segment, since connected systems are needed for efficient battery control and power distribution.

By Application , the Safety & Security Application dominated the Automotive Embedded Systems Market in 2024 with a 33.8% Market Share.

The dominance is driven by increased safety standards and increasing focus by consumers on technologies to prevent accidents. Lane departure warnings, adaptive cruise control (ACC), or emergency brake assistants are based on embedded systems. One of the leading players Bosch has invested heavily in embedded safety innovations to comply with changing standards and adapt to the demand of OEMs for advanced vehicle security systems.

Leading Market Players with their Product Listed in this Report are:

• Infineon Technologies
• Texas Instruments
• Panasonic
• Renesas
• Analog Devices
• Qualcomm
• Hyundai Mobis
• NXP Semiconductors
• STMicroelectronics
• Continental AG
• Aptiv
• Robert Bosch
• NVIDIA
• DENSO

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Recent Developments

In November 2024, Ampere expanded its SDV capabilities by opening a software center and deepening its partnership with ACTIA.

T able o f Contents - Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Automotive Embedded Systems Market Segmentation, by Type

8. Automotive Embedded Systems Market Segmentation, by Component

9. Automotive Embedded Systems Market Segmentation, by Vehicle Type

10. Automotive Embedded Systems Market Segmentation, by Electric Vehicle

11. Automotive Embedded Systems Market Segmentation, by Application

12. Regional Analysis

13. Company Profiles

14. Use Cases and Best Practices

15. Conclusion

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