Embedded Computer Market Outlook
The global Embedded Computer market size was valued at USD 86,304 Million in 2019 and is projected to reach USD 1,38,747 Million by 2027, expanding at a CAGR of 6.3% during the forecast period 2020-2027. The demand for embedded computing has been driven by an increasing acceptance of consumer electronics and an increase in the adoption of artificial intelligence.
Embedded computing systems are commonly being used in a variety of applications including home applications, office automation, banking and financial institutions, security, automotive, protection, personal, healthcare, and other sectors. The use of embedded computer is rising worldwide, especially in emerging economies due to growing industrial development activities.
Embedded Computer Market Dynamics
The expansion of the embedded computer market is attributed to major reforms made by various governments in their respective countries. Moreover, rise in industrial activities have fueled the use of an embedded computer, as they reduce time and help become automated machine.
Rising industrial development activities in emerging economies is projected to fuel the market in the near future. Other factors influencing the global embedded computing market include increasing digitization in healthcare & industrial automation and increasing demand in the automotive, defense, and other sectors.
Rising demand for IoT services, increasing need for digitalization, and growing penetration of communication and networking technologies propel the demand for embedded computers. Advanced principal technologies and the proliferation of devices fuel the growth of IoT technologies.
Industrial automation uses control systems, including robots and the Internet of Things (IoT) to handle various machinery and processes. These robots and IoT technology are based on embedded computers to offer high accuracy, precision, and enhanced performance of manufacturing processes.
Growing R&D investments across industries such as automotive, medical, aerospace, and electronics is creating opportunities for market players. The global market is driven by changing dynamics in the developing countries and product innovation. R&D expenditure is expected to grow at a significant pace during the forecast period, which in turn, is expected to increase the need for embedded system.
The overall product improvements have increased the demand for embedded computer in various industries such as medical, automotive, and electronic. Rising demand for the embedded system in emerging and developed economies is projected to create opportunities in the market.
Embedded systems are playing an important role in the automotive industry. These systems are used in ADAS technology incorporated in the electric and hybrid vehicles. The increase in the demand for electric and hybrid vehicles owing to the growing awareness among masses about the depleting state of the environment has led to the growth of the embedded computer market. This propels the demand for embedded hardware and software that are used in EVs.
Embedded Computer Market Segment Insights
Product Types Segment Analysis
Based on product types, the embedded computer market is segmented into COMS, SBCs, standalone board, and others. The COMS segment accounts for a major share of the market; however, the SBCs segment is anticipated to expand at a high CAGR during the forecast period. Factors such as increase in the demand for fast product development, durability, consistency of COMs, and its competency of multichannel retailing are some factors fueling the COMS segment.
The use of single board computers (SBCs) in notebooks, smartphones, and gaming systems is increasing owing to the development of the single board computers industry with upcoming technologies such as Internet of Things (IoT); therefore, the use of computers and smart technology in electronic devices is expected to propel the SBC segment during the forecast period. Advancements in technology, such as artificial intelligence (AI), has made the hardware more complex and compact, thus driving the need for SBCs in such computers. This, in turn, increases the market of SBCs in forecast period.
End-Users Segment Analysis
In terms of end-users, the embedded computer market is classified as industrial automation, military & defense, consumer electronics, communication, and others. The industrial automation segment accounts for a major share of the market; however, the consumer electronics segment is anticipated to expand at a high CAGR during the forecast period.
Industrial automation encompasses different applications such as comprise process control, energy, and infrastructure. Smart metering systems, data acquisition, and feedback control systems for automation are expected to boost the demand for industrial automation. Various electronic devices such as mobile phones, laptops, personal computers, and gaming consoles depend on embedded computing technology.
Rising standard of living, awareness about technology, and falling prices of consumer electronics devices has increased the penetration of consumer electronics equipped with embedded computing among end-user verticals. The consumer electronics segment is anticipated to expand at a high CAGR during the forecast period, as rapidly increasing penetration of internet connectivity & services in several developed and developing economies across the globe is providing robust growth opportunities in the consumer electronics industries.
Regional Analysis
In terms of regions, the embedded computer market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to account for a large share of the market, followed by Asia Pacific.
The market in Asia Pacific is projected to expand at a substantial CAGR during the forecast period. The large share of North America is attributed to the high implementation of technology and the presence of major vendors in the region. Moreover, rise in robotics and increase in applications of IoT in the region increase the demand for embedded computers.
Rising per capita income and ongoing large-scale industrialization and urbanization are factors shows dynamic growth of the embedded computer market in Asia Pacific. Additionally, the accessibility of low-cost electronic products in Asia Pacific is expected to fuel the demand for microprocessors and microcontrollers in the region.
Growing use of autonomous robots and embedded vision systems is projected to lead to a high demand for embedded system hardware such as microprocessors and controllers for the use in industrial applications in Asia Pacific. This, in turn, increases the demand in Asia Pacific in the coming years.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Embedded Computer Market
- Historical, Current and Projected Market Size in terms of Value (USD Million), Volume (Tons)
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Embedded Computer Market Performance
Segments
Product Type
- COMS
- SBCs
- Stand-alone Boards
- Others
CPU Architecture
- x86
- Aramid Fibers
- Water Scavenge
- Other
End User
- Industrial Automation
- Military & Defense
- Consumer Electronics
- Communication
- Others
Region
- North America
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- Germany
- France
- Italy
- U.K.
- Spain
- Russia
- Rest of the Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- South East Asia
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- GG
- Turkey
- Rest of Middle East & Africa
Key Players
- ABACO SYSTEMS
- Advantech Co. Ltd.
- Artesyn Embedded Technologies Inc.
- Curtiss-Wright Corporation
- Digi International Inc.
- EUROTECH
- Intel Corporation
- Kontron
- NXP Semiconductors
- Radisys.
- Others (On Request)
Competitive Landscape
The prominent manufacturers operating in the embedded computer market share include ABACO SYSTEMS, Advantech Co. Ltd., Artesyn Embedded Technologies Inc., Curtiss-Wright Corporation, Digi International Inc., EUROTECH, Intel Corporation, Kontron, NXP Semiconductors and Radisys.
-
In January 2020, Curtiss-Wright Corporation completed the acquisition of 901D Holdings, LLC for USD 132 million in cash. 901D Holdings is a leading designer and manufacturer of mission-critical integrated electronic devices, subsystems, and rugged shipboard enclosure solution. The acquisition extends the scope of instrumentation and control systems technologies for Curtiss-Wright Corporation and increased its presence on the vital U.S.
Marine Construction Programs. Additionally, the acquisition has enabled Curtiss-Wright Corporation to facilitate shipboard solutions for nuclear and non-nuclear-powered vessels and ensure benefits from the continued expansion of the U.S. naval fleet.
-
In 2018, Advantech Co. Ltd. entered into an agreement to purchase 80% of OMRON Nohgata, a subsidiary of OMRON Corporation, subject to customary closing conditions. Advantech Co. Ltd. and its wholly owned subsidiary Advantech Japan (AJP) are expected to own 50% and 30%, respectively.
OMRON Nohgata is projected be led by the current management team and would be creating products and combining sales tools with Advantech Embedded IoT Business Community. With this acquisition, Advantech Co. Ltd. effectively increased its Embedded Computer Market share of embedded systems in Japan and improved localized manufacturing services. Advantech Co. Ltd. plans to further work with OMRON Corporation on the IoT website.