USD 90.1 billion
Embedded Systems Market Size, Share, Growth Analysis, By Component (Hardware, Software), By System Size (Small-scale, Large-scale), By Application (Automotive, Consumer Electronics), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45B2174 |
Region:
Global |
Published Date: December, 2024
Pages:
178
|Tables:
0
|Figures:
0
Embedded Systems Market Insights
Embedded Systems Market size was valued at USD 95.33 Billion in 2023 and is poised to grow from USD 100.86 Billion in 2024 to USD 149.65 Billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).
Rapidly increasing demand for Internet of Things (IoT) devices and technologies is slated to emerge as the primary factor for embedded systems market growth in the future. Growing use of embedded systems and electronics across multiple industries ranging from healthcare to automotive will also create new business scope for embedded system companies going forward. Increasing sales of consumer electronics, electric vehicles, autonomous vehicles, and automation devices are also expected to uplift the demand for embedded systems in the long run. High demand for industrial automation to promote efficiency and productivity in different industries around the world is also estimated to offer new business opportunities for embedded system providers in the long run. On the contrary, complexities in integration, lack of standardization, and high development and maintenance costs are forecasted to slow down the sales of embedded systems across the study period and beyond.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
software
Growth Rate
5.8%
Global Embedded Systems Market ($ Bn)
Country Share for North America Region (%)
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Embedded Systems Market Segmental Analysis
Global Embedded Systems Market is segmented by Component, System Size, Application and region. Based on Component, the market is segmented into Hardware (Application-specific Integrated Circuits (ASIC), Microcontrollers Microprocessors, Power Management Integrated Circuits (PMIC), Field Programmable Gate Arrays (FPGA), Digital Signal Processors (DSP), Memories), Software (Operating Systems, Middleware, By Functionality Real-time Embedded Systems, Standalone Embedded Systems). Based on System Size, the market is segmented into Small-scale Embedded Systems, Medium-scale Embedded Systems, Large-scale Embedded Systems. Based on Application, the market is segmented into Automotive, Consumer Electronics, Industrial, Aerospace and Defense, Energy, Healthcare, Communication. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Component
Hardware is projected to account for a significant share of the global embedded systems market. Growing use of advanced semiconductor technologies to integrate multiple sensors and processors into a single embedded system is forecasted to help the dominance of this segment. Advancements in hardware technologies and high costs of advanced and delicate hardware components are also estimated to generate major revenue for embedded system companies operating in this segment going forward. Moreover, rising investments in the development of special microprocessors, sensors, and hardware electronics for embedded systems will also create new opportunities in the long run.
Meanwhile, the demand for embedded system software is slated to increase at a noteworthy pace across the forecast period. Growing complexity of embedded systems is pushing the demand for more advanced software to handle multiple components of the embedded system thereby providing lucrative business scope for embedded systems companies as well. Integration of advanced technologies such as artificial intelligence and machine learning is also resulting in the creation of novel software for embedded systems thereby also creating new business opportunities. Rising investments in the development of custom software to enhance the capabilities of embedded systems will also offer remunerative business scope for all market players focusing on the software segment in the future.
Analysis by Application
The automotive segment is forecasted to bring in the most revenue for embedded system companies over the coming years. Growing electrification of the automotive industry and rising use of embedded systems and embedded electronics in electric vehicles is slated to help this segment emerge as a dominant one. Rising investments in the development of autonomous vehicles are also expected to further aid the dominance of this segment. High adoption of advanced safety and driver assistance systems and advanced infotainment systems will also promote the sales of embedded systems in automotive applications across the study period.
On the other hand, the demand for embedded systems in industrial applications is expected to surge at an impressive pace in the future. Growing demand for automation and rising penetration of digital technologies in industrial settings around the world are creating an opportune setting for embedded systems companies. High emphasis on improving industrial efficiency and productivity is also expected to promote the demand for embedded systems via this segment going forward. Rising investments in the establishment of new smart factories are also estimated to offer new opportunities for embedded systems market development in the long run.
Global Embedded Systems Market By Component
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Embedded Systems Market Regional Insights
North America is forecasted to emerge as the leader in terms of global embedded system demand outlook. The presence of key embedded system providers and quick adoption of advanced technologies are key factors allowing this region to hold sway over others. Rising investments in the development of novel digital technologies in this region coupled with high demand for industrial automation are also creating new business scope for embedded system companies operating in North America. The United States is slated to be the most opportune market for embedded system companies in this region followed by Canada. High use of connected devices in this region will also promote market growth.
Rapidly increasing digital transformation and growing demand for automation in the industrial sector are projected to make the Asia Pacific region the fastest growing market in the world. Launch of new smart city initiatives in this region, presence of robust automotive manufacturing industry, and presence of multiple embedded electronics manufacturers are also expected to help this region become highly opportune for embedded system companies. China, Japan, and India are estimated to be the leading markets for embedded system providers operating in the Asia Pacific region. Supportive government initiatives to promote manufacturing activity in this region will also create new business scope for embedded system suppliers going forward.
Global Embedded Systems Market By Region
- Largest
- Fastest
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Embedded Systems Market Dynamics
Drivers
High Demand for IoT Devices
- The proliferation of Internet of Things (IoT) technologies and devices has increased rapidly around the world. This trend is projected to uplift the demand for advanced embedded systems as the popularity of integrated systems for automation, real-time data processing, and connectivity increases on a global level.
Rising Use of Automation
- Industries around the world are turning towards automation to maximize their business scope and enhance productivity in the future. Growing use of automation is also expected to promote the demand for embedded systems that offer precise control, monitoring, and optimization of industrial machines and processes, which in turn favors market growth as well.
Restraints
Lack of Standardization
- Embedded systems can vary vastly as there is no standardized framework of regulations in place to keep them compatible and interoperable. This fragmented nature of development due to lack of standardization is estimated to slow down the sales of embedded systems across the forecast period and beyond.
Complexity in Integration
- Embedded systems are highly advanced systems and the process of developing and integrating them is quite capital-intensive. Growing demand for better real-time processing, low power consumption, and reliability adds to the design challenges of embedded systems leading to more complexity and thereby inhibiting market growth potential as well.
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Embedded Systems Market Competitive Landscape
Embedded system companies should invest in the research and development of novel solutions that are affordable and easy to integrate. Targeting countries with rapidly increasing industrialization and urbanization will offer good returns for embedded system providers in the future. Rising demand for automation is also a key opportunity that embedded systems market players can explore in the future.
Top Player’s Company Profiles
- Intel Corporation
- Texas Instruments
- Qualcomm Technologies
- Microchip Technology Inc.
- NXP Semiconductors
- STMicroelectronics
- Analog Devices
- Renesas Electronics Corporation
- Infineon Technologies
- Broadcom Inc.
- Toshiba Corporation
- Fujitsu Limited
- ARM Holdings
- Cypress Semiconductor Corporation
- Samsung Electronics
- Lattice Semiconductor
- Sony Semiconductor Solutions
Recent Developments
- In July 2024, a new brand for embedded computer systems called Tria was launched by Avnet. Through this brand the company is focusing on streamlining its expertise in development and manufacturing of embedded systems to maximize their business potential in the future. Tria will also be responsible for developing custom embedded systems for clients.
- In May 2024, a new development kit for developers to create prototypes of different AL-enabled embedded systems was launched by Avnet. QCS6490 Vision-AI Development Kit allows users to develop new multi-camera AI-enabled embedded products based on MSC SM2S-QCS6490 SMARC compute module.
- In July 2024, Microchip Technology, a leading provider of semiconductors and IP solutions announced the launch of its new microprocessors aimed at the development of embedded systems. PIC64 portfolio is a new range of 64-bit microprocessors designed to meet the increasing demand for modern embedded systems.
Embedded Systems Key Market Trends
- High Demand for Edge Computing: Embedded system providers should focus on the development of products that are capable of performing edge computing operations as high proliferation of IoT devices is boosting the demand for edge computing. Developing embedded systems with reduced latency and better real-time data processing capabilities will help market players boost their sales potential in the future.
- Development of Silicon-on-Chip (SoC) Technology: Embedded system companies should focus on the development and advancement of SoC technology that integrates multiple hardware components on a single chip. SoCs offer higher performance, lower power consumption, and a smaller footprint, making them ideal for compact and portable devices. Use of SoC technologies to enhance embedded systems will also create new business scope for market players in the long run.
Embedded Systems Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing demand for automation and rising use of Internet of things (IoT) devices are slated to augment the demand for embedded systems over the coming years. However, lack of standardization and complexity in integration are slated to key restraints for embedded systems market growth in the future. Rapid adoption of advanced connected technologies and devices allows North America to account for a dominant share of the global embedded system demand outlook. Increasing use of silicon-on-chip (SoC) technologies and growing demand for edge computing are also projected to create new opportunities for embedded system companies in the long run.
Asset tracking around the world and rising emphasis on productivity enhancement are slated to drive the global embedded systems market growth. On the contrary, environmental and technical limitations coupled with complexity in integration are slated to slow down market development in the future. High adoption of embedded systems by businesses in the North American region allows it to hold a dominant market share. Integration of artificial intelligence and use of ultra-wideband technologies could offer remunerative business scope for all companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 90.1 billion |
| Market size value in 2031 | USD 141.45 billion |
| Growth Rate | 5.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Embedded Systems Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Embedded Systems Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Embedded Systems Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Embedded Systems Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Embedded Systems Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Embedded Systems Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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