The automotive industry has undergone a revolutionary transformation with the integration of embedded systems, marking a paradigm shift in vehicle design, performance, and safety. This global review explores the evolution of embedded systems in the automotive sector, encompassing the technological advancements, market trends, and the transformative impact on vehicle functionalities. Over the past few decades, the automotive landscape has witnessed a rapid integration of embedded systems to enhance vehicle intelligence and connectivity. These systems, ranging from Engine Control Units (ECUs) to Advanced Driver Assistance Systems (ADAS), have become pivotal in shaping the modern automotive experience. The review delves into the historical trajectory, starting from the early stages of simple control units to the sophisticated, interconnected systems prevalent in today's vehicles. The adoption of embedded systems has not been uniform across regions, and the review highlights the global trends and regional disparities in implementing these technologies. Different countries and automotive markets have exhibited diverse approaches, influenced by regulatory frameworks, consumer preferences, and the availability of infrastructure. Moreover, the review examines the symbiotic relationship between embedded systems and the emergence of electric and autonomous vehicles. As the automotive industry embraces sustainability and autonomy, embedded systems play a pivotal role in achieving these objectives by optimizing energy consumption, improving safety measures, and enabling seamless communication between vehicles and their environment. The challenges and opportunities associated with the evolution of embedded systems are also scrutinized, including cybersecurity concerns, standardization efforts, and the growing role of artificial intelligence in automotive applications. This comprehensive review contributes to a deeper understanding of the intricate dynamics between embedded systems and the automotive industry, providing valuable insights for researchers, industry professionals, and policymakers navigating the ever-evolving landscape of smart and connected vehicles.