In-Vehicle Computer System Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast 2024-2028

In-Vehicle Computer System Market Size 2024-2028

The in-vehicle computer system market size is forecast to increase by USD 2.66 billion at a CAGR of 16.6% between 2023 and 2028.

• In-vehicle computer systems have become an integral part of modern vehicles, with safety computers playing a crucial role in advanced safety features such as electronic stability control (ESC) and autonomous emergency braking (AEB). The integration of these technologies has significantly reduced emergency response times, enhancing overall vehicle safety. OEMs are continuously investing in these initiatives to cater to consumer demand for advanced safety features.
• Moreover, the advent of 5G connectivity and vehicle-to-vehicle (V2V) communication is set to revolutionize the market. These technologies will enable real-time data exchange between vehicles, improving road safety and enabling new applications such as predictive maintenance and traffic management. However, the increasing design complexity and technological challenges pose significant hurdles to market growth. Despite these challenges, the market is expected to grow steadily due to the high correlation between consumer electronics and connected vehicle solutions.

What will be the Size of the Market During the Forecast Period?

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• The market for in-vehicle computer systems (IVCS) in commercial vehicles is witnessing significant growth due to the increasing demand for advanced features and technologies. These systems are integral to developing connected commercial vehicles, enabling fleet management, improving vehicle safety, and enhancing passenger comfort. IVCS are essential components of modern commercial vehicles, enabling various applications such as emission control tests, real-time GPS tracking, predictive maintenance alerts, and infotainment systems. The integration of IVCS in commercial vehicles is crucial for sustainable transportation, as it helps reduce pollution levels and improve overall efficiency.
• Moreover, connected commercial vehicles are the future of transportation, and IVCS plays a vital role in their development. These systems provide connectivity services, enabling the collection and transmission of traffic data, weather forecasts, and other essential information to fleet managers and drivers. This data is crucial for optimizing routes, reducing fuel consumption, and improving overall fleet performance. Moreover, IVCS are increasingly being integrated with advanced driver-assistance systems (ADAS) and intelligent cruise controls to enhance vehicle safety. Predictive vehicle maintenance alerts help fleet managers identify potential issues before they become major problems, reducing downtime and maintenance costs. IVCS also offer various passenger security systems, including video surveillance, to ensure the safety and security of passengers.
• Additionally, IVCS are being integrated with smart transportation systems to optimize public transit operations and improve overall efficiency. However, the adoption of IVCS in commercial vehicles also raises data security concerns. As these systems collect and transmit sensitive data, it is essential to ensure that this data is secure and protected from unauthorized access. Automakers are investing heavily in developing strong security protocols and encryption technologies to address these concerns. In conclusion, the market for IVCS in commercial vehicles is expected to grow significantly in the coming years, driven by the increasing demand for advanced features and technologies.
• In conclusion, these systems are essential for the development of connected commercial vehicles, improving vehicle safety, and enhancing passenger comfort. However, data security concerns remain a significant challenge, and automakers must invest in developing strong security protocols to address these concerns.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Passenger vehicle
  • Commercial vehicle
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
    • France
  • APAC
    • China
  • South America
  • Middle East and Africa

By Application Insights

• The passenger vehicle segment is estimated to witness significant growth during the forecast period.

In-vehicle computer systems have become an integral part of both commercial and passenger vehicles, with safety computers leading the market. Advanced safety features such as electronic stability control (ESC) and autonomous emergency braking (AEB) are increasingly being adopted to ensure road safety. The eCall system, which automatically dials emergency services in case of an accident, is another essential safety feature that is gaining popularity. The importance of quick emergency response times has led to initiatives by Original Equipment Manufacturers (OEMs) to integrate 5G connectivity and Vehicle-to-Vehicle (V2V) communication. These technologies enable real-time data exchange between vehicles, improving road safety and reducing response times in emergencies.

Moreover, the deployment of modern connectivity services in passenger vehicles is expected to enhance fleet management and offer predictive maintenance warnings, real-time GPS tracking, precise traffic statistics, and weather predictions. These features will help fleet operations become more efficient and profitable. The integration of advanced in-vehicle computer systems is a response to the need for eco-friendly transportation and stricter emission control testing. The future of the market looks promising, with continuous innovation and advancements in technology.

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The passenger vehicle segment was valued at USD 903.80 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 34% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The In-Vehicle Computer System (IVCS) market in North America is experiencing significant growth, with the United States and Canada being key contributors. The increasing preference for connected cars among tech-savvy consumers and substantial investments in connectivity technologies are driving market expansion. Furthermore, the presence of major tech companies in Silicon Valley and San Francisco is fueling the development of advanced connectivity solutions for luxury vehicles. Regulations in North America focus driving comfort, safety, and connectivity, further boosting the demand for IVCS. The elderly population, who make up a significant portion of car buyers in the region with an average age of 51.7 years, are particularly interested in these features.

Moreover, In-Vehicle Computer Systems are integral to Advanced Driver-Assistance Systems (ADAS) such as intelligent cruise controls and predictive vehicle maintenance. They also power infotainment systems and contribute to vehicle safety. Data security concerns are a priority for both automakers and consumers, ensuring that hardware and software solutions are secure. The IVCS market in North America is expected to witness continued growth as automakers integrate autonomous driving systems into their vehicles, enhancing the overall driving experience.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of In-Vehicle Computer System Market?

A high correlation between consumer electronics and connected vehicle solutions is the key driver of the market.

• In the automotive industry, economies of scale significantly influence the adoption of advanced technologies such as Electrification, Autonomous Driving, Artificial Intelligence, Machine Learning, Computer Vision, and 5G Technologies in Electric Vehicles and Connected Cars. The decline in the cost of these technologies, driven by increased production, enables Original Equipment Manufacturers (OEMs) to offer more value to consumers. The integration of these technologies, including the eCall System and Over-the-Air (OTA) updates, enhances mobility experiences. For instance, Artificial Intelligence and Machine Learning enable advanced driver assistance systems, while Computer Vision improves safety and convenience. Cloud Computing and 5G Technologies facilitate real-time data processing and communication, ensuring seamless connectivity.
• Moreover, Display Audio Systems have become an essential component of modern vehicles, providing an interface for various functions. The integration of these systems with advanced technologies further enhances their capabilities. For example, they can offer real-time traffic updates, entertainment, and voice command features. In conclusion, the automotive industry is witnessing a technological revolution, driven by economies of scale and the integration of advanced technologies such as Electrification, Autonomous Driving, Artificial Intelligence, Machine Learning, Computer Vision, Electric Vehicles, Mobility, Over-the-Air (OTA), Cloud Computing, 5G Technologies, Connected Cars, and eCall System. These technologies offer significant value to consumers, making vehicles safer, more efficient, and more convenient.

What are the market trends shaping the In-Vehicle Computer System Market?

Increased integration of smartphones is the upcoming trend in the market.

• In the commercial vehicle sector, Internal Combustion Engines (ICE) continue to dominate the market. However, there is a growing emphasis on sustainable transportation as emission control tests and concerns over pollution levels become increasingly stringent. To address these challenges, connected commercial vehicles are gaining popularity. OEMs are collaborating with technology providers to offer fleet management solutions that include connectivity services, real-time GPS tracking, predictive maintenance alerts, traffic data, and weather forecasts.
• Additionally, these features enable efficient fleet management and enhance operational productivity. As consumers become more reliant on their smartphones and tablets for information and entertainment, in-vehicle computer systems must evolve to offer unique value propositions. Collaborations between OEMs and technology companies can help bridge this gap and provide integrated solutions that cater to the evolving needs of commercial vehicle operators.

What challenges does In-Vehicle Computer System Market face during the growth?

Design complexity and technological challenges is a key challenge affecting the market growth.

• The automotive industry is undergoing a significant transformation as technology advances and connectivity solutions become more prevalent in vehicles. Telematics and infotainment systems have grown increasingly complex in managing the vast array of features and functions, from cluster displays and head-up displays to night vision systems and remote diagnostics. With the evolution of fleet management and shared mobility vehicles, basic computing has given way to advanced and high-performance computing systems.
• However, companies and suppliers are focusing on creating user interfaces that are affordable, unobtrusive, and user-friendly. The automotive segment has progressed from simple radio/audio systems to sophisticated advanced driver assistance systems and is heading towards fully autonomous vehicles. These developments add to the complexity of the in-vehicle computer systems.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AAEON Technology Inc.
• Acrosser Technology Co. Ltd.
• ADLINK Technology Inc.
• American Portwell Technology Inc.
• Avalue Technology Inc.
• Axiomtek Co. Ltd.
• IBASE Technology Inc.
• IEI Integration Corp.
• JLT Mobile Computers AB
• Kontron AG
• Lanner Electronics Inc.
• Neousys Technology Inc.
• NEXCOM International Co. Ltd.
• OnLogic Inc.
• Premio Inc.
• roda computer GmbH
• SD OMEGA Hong Kong Co. Ltd.
• SINTRONES Technology Corp.
• WINSONIC ELECTRONICS CO. LTD.
• ZF Friedrichshafen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

In-Vehicle Computer Systems (IVCS) have become an integral part of modern commercial vehicles, enhancing safety, efficiency, and connectivity. These systems incorporate advanced safety features such as Electronic Stability Control (ESC), Autonomous Emergency Braking (AEB), and Emergency Call (eCall) systems. Real-time GPS, traffic data, and weather forecasts enable fleet management and predictive maintenance alerts, improving operational efficiency. IVCS also offers infotainment and telematics, including video surveillance, smart transportation, and intelligent cruise controls. Connected commercial vehicles facilitate 5G connectivity, enabling vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. Autonomous driving systems, powered by artificial intelligence, machine learning, and computer vision, are transforming the transportation landscape.

In summary, IVCS also cater to emergency response vehicles and disaster management solutions. IVCS are designed for various vehicle types, offering basic, advanced, and high-performance computing solutions. Passenger security systems, display audio systems, telematics systems, cluster displays, head-up displays, digital instrument clusters, and night vision systems are some of the features available. Data security concerns are addressed through hardware and software security measures. Over-the-air (OTA) updates and cloud computing facilitate seamless system upgrades and remote diagnostics. The automakers continue to innovate, integrating IVCS into shared mobility vehicles and electrified commercial fleets.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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