Embedded System Market By Hardware, By Software, By Functionality, By System Size, By Application - Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

17 Mar 2023 Format PDF icon PPT icon XLS icon Request Sample

The market size for embedded systems is projected to increase at a CAGR of 6% during the forecast period of 2024 to 2032. An increase in the number of research and development activities related to embedded systems, an increase in the demand for advanced driver-assistance systems (ADAS) and electromobility solutions for electric vehicles and hybrid vehicles, an increase in the demand for portable devices such as wearables, and an increase in the use of multicore processors in military applications are key factors driving the growth of this market.

Embedded System Market

Increased Demand for ADAS in EVs And Hybrids Is the Motivating Factor

Embedded technologies are playing a significant role in the automotive industry's overhaul. These systems are incorporated into the ADAS technology of electric and hybrid automobiles. The expansion of the embedded system market can be attributed to the rise in demand for electric and hybrid vehicles as a result of heightened public awareness of the environment's deteriorating condition. According to a report by Bloomberg New Energy Finance, sales of electric vehicles reached exceeded 41 million by 2020, leading to an increase in demand for electronic components such as embedded hardware and software utilized in electric vehicles.

Increasing Android Consumer Electronics Use to Boost Embedded System Development

The market value of embedded software for mobile system tasks will reach USD 7 billion by 2031, due to the increasing use of Android-based consumer devices like tablets, smartphones, and wearable electronics. In recent years, chip manufacturers have also increased their product offers. In November 2023, for instance, Qualcomm introduced the Snapdragon 8 Gen 2 chipset, which was designed to power premium smartphones.

Enhanced Output and Other Essential Characteristics to Encourage Embedded Systems to Employ RTOS

The real-time operating system subsegment of the embedded software market is anticipated to grow at a CAGR of over 10.2% through the forecast period, owing to the system's vast application breadth, which includes flight control, telephone switching equipment, industrial control, and real-time simulations. The demand for VxWorks RTOS, for instance, is expanding significantly because of the technology's capacity to save money and speed up production. Moreover, features such as maximum system and device utilization and high output will increase the use of RTOS in embedded systems.

Embedded System Susceptibility to Cyberthreats and Security Breaches

The security of embedded devices is one of the primary problems that has restricted the growth of the embedded system market. Memory and other embedded devices carry information that may be essential for military forces, banks, data centers, and healthcare facilities. Consequently, it is of the utmost importance to protect these devices against cyber threats and security breaches. Embedded systems are susceptible to assaults due to variables such as infrequent security upgrades, a lengthy device lifecycle, remote deployment, and attack replication. Thus, the susceptibility of embedded systems to cyber-attacks and security breaches is anticipated to impede the market growth for embedded systems.

The Introduction Of 5G And the Creation Of 5G-Based Embedded Devices

The introduction of 5G technology is anticipated to create growth opportunities for the embedded system market. According to the GSM Association (GSMA), the 5G market will contribute USD 2,2 trillion to the world economy by 2034, accounting for 5.3% of global GDP growth. As a result, 5G architecture-based embedded device production is anticipated to increase in the future. Due to the incorporation of 5G into its architecture, embedded devices used in vehicle smart video surveillance systems deliver rapid reaction rates. In addition, 5G technology is anticipated to aid in the resolution of issues related to industrial automation and smart farming by enabling rapid picture processing. Thus, it is anticipated that embedded devices supporting 5G infrastructure will fuel the expansion of the embedded system market.

High Energy Consumption of Miniature Embedded Systems

The ability of embedded systems to accommodate multiple functionalities may cause their design structures to be complex. This also increases the embedded system's energy usage. Embedded devices with high energy consumption frequently have a short lifespan. The embedded device's energy consumption is temperature-dependent and increases as the device's temperature rises. This affects the embedded system's overall performance. Therefore, the high energy consumption of tiny embedded systems poses a significant barrier to the commercial expansion of embedded systems.

In 2023, The Microcontrollers Sector Held the Greatest Proportion of the Hardware Market

In 2023, the microcontrollers subsegment held the biggest market share in embedded system hardware. Increased use of microcontrollers in implanted medical devices, vehicle engine control systems, microwave ovens, washers and dryers, security systems, office machines, remote controls, power tools, appliances, and toys have contributed to the expansion of this market segment. The need for microcontrollers continues to rise due to automation in many industries, the adoption of IoT in a number of verticals, an increase in the global demand for protected applications, and an increase in the demand for devices with low energy consumption.

In 2023, Real-Time Embedded Systems Sector Dominated the Market by Software

Real-time embedded systems are utilized in applications requiring a high rate of response. Network embedded systems are a type of real-time embedded system that utilizes a LAN, WAN, or the Internet to access resources and carry out specified tasks. Both wired and wireless connectivity is available. One element driving the demand for real-time embedded systems is the increasing incorporation of IoT into various devices, smart environments, and platforms. In addition, continual innovations in sensors and actuators used for industrial automation, energy distribution, transportation, telecommunication networks, and healthcare applications are fuelling the global demand for real-time embedded systems.

In 2023, The Communication Segment Dominated the Market by Application

In 2023, the communication segment held the biggest market share for embedded systems. In order to facilitate the expansion of communication infrastructures, embedded systems are employed in routers, Ethernet devices, wireless infrastructures, and protocol converters for high-speed data transfer. In numerous network and telecom applications, embedded hardware, such as FPGA and ASIC, is employed. For high-speed data transfer, telecom carriers frequently integrate hard IP for interfaces such as peripheral component interconnect (PCI) Express, 100G Ethernet, and DDR3/4 using embedded hardware such as FPGA. In addition, radio access network (RAN) equipment increasingly employs technologies like eASIC, which are cost-effective and meet power requirements.

Asia-Pacific Remains as the Global Leader

In the Asia-Pacific (APAC) region, the growth of the embedded system market is driven by rising per capita income and continuous industrialization and urbanization on a massive scale. In addition, the availability of inexpensive electronic products in APAC is anticipated to contribute to the region's growing need for microprocessors and microcontrollers. The increasing usage of autonomous robots and embedded vision systems is also expected to raise the need for embedded system hardware, such as microprocessors and controllers, in APAC industrial applications.

Business Expansion Remains the Key Strategy Influencing Market Shares

Xilinx, Via Technologies, Inc., Toshiba Corporation, Texas Instruments, STMicroelectronics, Siemens, SEGGER, Renesas Electronics Corporation, National Instruments Corp., Mitsubishi Electric Corporation, Microsoft, L&T Technology Services Limited, Intellias Ltd., Intel Corporation, IBM, Emerson Electric Co., Green Hills Software, Advantech Co., Ltd., and Accenture are among the leading companies in the embedded software market. Strategic mergers and acquisitions and product line extensions are among the strategies these companies are pursuing to strengthen their market position.

In June 2023, for instance, Renesas Electronics Corporation released two cloud development kits, the CK-RA6M5 and CK-RX65N, designed to provide a comprehensive connectivity solution for the RX and RA Families of 32-bit microcontrollers. These kits were supposed to be equipped with the Renesas RYZ014A Cat-M1 module, which may establish wireless connections between cloud services and MCUs without the requirement of a gateway, allowing the company to increase its market presence.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Embedded System market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Embedded System market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2022-2032
Base Year 2023
Forecast Period  2024-2032
Historical Year  2022
Unit  USD Million
  • Application-specific Integrated Circuits (ASIC)
  • Microcontrollers
  • Microprocessors
  • Power Management Integrated Circuits (PMIC)
  • Field Programmable Gate Arrays (FPGA)
  • Digital Signal Processors (DSP)
  • Memories

  • Operating Systems
    •     General Purpose Operating System (GPOS)
      •         Windows
      •         Linux
      •         Android
      •         Others
    •     Real-time Operating System (RTOS)
      •         VxWorks
      •         QNX
      •         FreeRTOS
      •         ARM Mbed
      •         Others RTOS
    •     Others
  • Middleware

  • Real-time Embedded Systems
  • Standalone Embedded Systems

System Size
  • Small-scale Embedded Systems
  • Medium-scale Embedded Systems
  • Large-scale Embedded Systems

  • Automotive
  • Consumer Electronics
  • Industrial
  • Aerospace and Defense
  • Energy
  • Healthcare
  • Communication

 Region Segment (2022-2032; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Embedded System market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2032.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Embedded System market?
  • Which is the largest regional market for Embedded System market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Embedded System market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Embedded System market worldwide?
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