Embedded System Market Size, Share & Growth | Forecast 2031

Segments - Embedded System Market by Type (Hardware, Software, and Services), Application (Industrial, Automotive, Aerospace & Defense, Consumer Electronics, Manufacturing, and Others), Function (Real-time, Standalone, Mobile, and Network), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

Author : Raksha Sharma

Fact-checked by : Vineet Pandey

Editor : Shruti Bhat

Report Description

The global embedded system market size was USD 89.2 Bn in 2022 and is likely to reach USD 163.3 Bn by 2031, expanding at a CAGR of 6.6% during 2023–2031. Increasing demand for embedded systems in healthcare, automotive, industrial, telecommunication, and consumer electronics application is likely to boost the market.

An embedded system is a computer system that is designed to perform a specific function within a larger system or device. These systems are typically designed to be small, low-power, operate in real time, and are often integrated into other electronic devices such as appliances, automobiles, medical devices, and industrial equipment.

Embedded systems typically have a microcontroller or microprocessor as the central processing unit (CPU), and include other hardware components such as memory, sensors, actuators, communication interfaces, and power management systems.

Embedded systems often operate in real-time; they are designed to respond quickly to input signals and generate output signals within a specific timeframe. This requires a high level of optimization of hardware and software to ensure that the system meets the required performance specifications.

Embedded systems are critical components in many modern devices and systems, and their design and development require specialized knowledge and expertise in hardware and software engineering.

The market report finds that the COVID-19 pandemic restrained the embedded system market. Supply chain disruptions, low demand, and limited production are some of the reasons restraining the market. The continuous fall in the export shipments of automotive vehicles negatively impacts the market.

Embedded System Market Dynamics

Major Drivers:

Increasing demand for the automotive industry is expected to drive the embedded system market. Embedded systems are used in advanced driver assistance systems (ADAS) technology that are incorporated the electric and hybrid vehicles. The high demand for electric vehicles and hybrid vehicles are increasing, due to the growing awareness of the depleting state of the environment. This factor is likely to drive the market.

Growing demand for smart electricity meters, due to the increasing demand for smart power meters is expected to boost the market. Increasing number of research and development projects to improve embedded systems is expected to fuel the market.

Restraints:

The security of embedded devices is the major factor restraining the market. Embedded devices such as banks, healthcare institutions, military forces, data centers, and memory contain information that could be critical. Therefore, it is critical to protect these devices from security breaches and cyber threats.

Opportunities:

Increase of 5G and the development of 5G based embedded devices is expected to create lucrative opportunities for the market players. According to the GSMA, 5G is estimated to contribute around USD 2.2 trillion to the global economy by 2034, with major industries such as utilities, manufacturing, and professional & financial services benefitting from the new technology.

Scope of the Embedded System Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have been included in the report.

Attributes	Details
Report Title	Embedded System Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Base Year	2022
Historic Data	2016–2021
Forecast Period	2023–2031
Segmentation	Type (Hardware, Software, and Services), Application (Industrial, Automotive, Aerospace & Defense, Consumer Electronics, manufacturing, and Others), and Function (Real-time, Standalone, Mobile, and Network)
Regional Scope	Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
Key Players Covered in the Report	Texas Instruments Incorporated; STMicroelectronics; SAMSUNG; Renesas Electronics Corporation; Qualcomm Technologies, Inc.; NXP Semiconductors; Microsoft; Microchip Technology Inc.; Marvell; KONTRON AG; Intel Corporation; Infineon Technologies AG; Fujitsu; Broadcom; Arm Limited; Analog Devices, Inc.; Advantech Co., Ltd.; and Advanced Micro Devices, Inc

Embedded System Market Segment Insights

Based on type, the embedded system market is divided into hardware, software, and services. The hardware segment is divided into microcontrollers, digital signal processors (DSP), microprocessors, PMIC, ASIC, and others. The software segment is bifurcated into middleware and operating systems (OS).

The microcontrollers segment is expected to expand at a significant pace during the projection period, due to the increasing use of microcontrollers in implantable medical devices, microwaves, office machines, power tools, and others. The demand for microcontrollers is continuously increasing, due to the adoption of the internet of things (IoT) in several verticals, increasing demand for low-energy consumption devices.

On the basis of application, the global market is segregated into industrial, automotive, aerospace & defense, consumer electronics, manufacturing, and others. The automotive segment is projected to register a considerable CAGR during the forecast period. In the automotive sector, embedded systems are used for infotainment, engine control, security, ADAS, and safety. The most commonly used embedded systems in a vehicle include a black box, emission control, airbags, automatic parking, and others.

In terms of function, the embedded system market is segregated into real-time, standalone, mobile, and network. The real-time segment is expected to register a robust growth rate during the forecast period, due to the increasing integration of IoT in several devices, platforms, and smart environments. The real-time embedded system works based on real-time computing represented by a dedicated type of real-time operating system (RTOS).

The mobile segment is projected to hold a large share of the market in the coming years. Several mobile devices such as smartphones, mp3, and digital cameras rely on embedded systems. According to the China Academy of Information and Communications Technology (CAICT), the country’s mobile phone shipments decreased by 22.6% year-on-year to 272 million in 2022.

In terms of region, the global embedded system market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, due to the growing per capita income and large-scale industrialization & urbanization. Increasing penetration of smartphones has catapulted software development for mobile phones, which is driving the market in the region. Additionally, the growing number of applications in several industries such as healthcare, energy, and transportation are likely to drive the market in the region.

The market in North America is anticipated to expand at a rapid pace in the coming years, due to the increasing demand for connected and smart devices. Growing industrialization and advancements in automotive electronics is expected to boost the market in the region.

Segments

The global embedded system market has been segmented on the basis of

Type

Hardware
Software
Services

Application

Industrial
Automotive
Aerospace & Defense
Consumer Electronics
Manufacturing
Others

Function

Real-time
Standalone
Mobile
Network

Region

Asia Pacific
North America
Latin America
Europe
Middle East & Africa

Key Players

Texas Instruments Incorporated
STMicroelectronics
SAMSUNG
Renesas Electronics Corporation
Qualcomm Technologies, Inc.
NXP Semiconductors
Microsoft
Microchip Technology Inc.
Marvell
KONTRON AG
Intel Corporation
Infineon Technologies AG
Fujitsu
Broadcom
Arm Limited
Analog Devices, Inc.
Advantech Co., Ltd.
Advanced Micro Devices, Inc

Competitive Landscape

Key players competing in the global embedded system market are Texas Instruments Incorporated; STMicroelectronics; SAMSUNG; Renesas Electronics Corporation; Qualcomm Technologies, Inc.; NXP Semiconductors; Microsoft; Microchip Technology Inc.; Marvell; KONTRON AG; Intel Corporation; Infineon Technologies AG; Fujitsu; Broadcom; Arm Limited; Analog Devices, Inc.; Advantech Co., Ltd.; and Advanced Micro Devices, Inc

These players adopt various strategies including mergers, collaboration, partnerships, product launches, and acquisitions to increase their consumer base worldwide.

In May 2022, Broadcom Inc. acquired all outstanding shares of VMware in a cash-and-stock transaction value of around 61 billion. Additionally, Broadcom assumes 8 billion of VMware’s net debt.
In August 2021, Analog Devices, Inc. announced the completion of Maxim Integrated Products, Inc. The combination strengthens ADI’s position as a high-performance analog semiconductor company with a trailing twelve-month revenue of around 9 billion and a free cash flow of around 3 billion on a pro forma basis.

Embedded System Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Embedded System Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Embedded System Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Embedded System Market - Supply Chain
  4.5. Global Embedded System Market Forecast
     4.5.1. Embedded System Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Embedded System Market Size (000â€™ Units) and Y-o-Y Growth
     4.5.3. Embedded System Market Absolute $ Opportunity
5. Global Embedded System Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Embedded System Market Size and Volume Forecast by Types
     5.3.1. Hardware
     5.3.2. Software
     5.3.3. Services
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Embedded System Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. Embedded System Market Size and Volume Forecast by Applications
     6.3.1. Industrial
     6.3.2. Automotive
     6.3.3. Aerospace & Defense
     6.3.4. Consumer Electronics
     6.3.5. Manufacturing
     6.3.6. Others
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Embedded System Market Analysis and Forecast by Region
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by Region
     7.2.2. Y-o-Y Growth Projections by Region
  7.3. Embedded System Market Size and Volume Forecast by Region
     7.3.1. North America
     7.3.2. Latin America
     7.3.3. Europe
     7.3.4. Asia Pacific
     7.3.5. Middle East and Africa (MEA)
  7.4. Absolute $ Opportunity Assessment by Region
  7.5. Market Attractiveness/Growth Potential Analysis by Region
  7.6. Global Embedded System Demand Share Forecast, 2019-2026
8. North America Embedded System Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
  8.2. North America Embedded System Market Size and Volume Forecast by Country
     8.2.1. U.S.
     8.2.2. Canada
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. North America Embedded System Market Size and Volume Forecast by Types
     8.4.1. Hardware
     8.4.2. Software
     8.4.3. Services
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. North America Embedded System Market Size and Volume Forecast by Applications
     8.7.1. Industrial
     8.7.2. Automotive
     8.7.3. Aerospace & Defense
     8.7.4. Consumer Electronics
     8.7.5. Manufacturing
     8.7.6. Others
  8.8. Basis Point Share (BPS) Analysis by Applications
  8.9. Y-o-Y Growth Projections by Applications
  8.10. Market Attractiveness/Growth Potential Analysis
     8.10.1. By Country
     8.10.2. By Product Type
     8.10.3. By Application
  8.11. North America Embedded System Demand Share Forecast, 2019-2026
9. Latin America Embedded System Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Latin America Average Pricing Analysis
  9.2. Latin America Embedded System Market Size and Volume Forecast by Country
      9.2.1. Brazil
      9.2.2. Mexico
      9.2.3. Rest of Latin America
   9.3. Absolute $ Opportunity Assessment by Country
  9.4. Latin America Embedded System Market Size and Volume Forecast by Types
     9.4.1. Hardware
     9.4.2. Software
     9.4.3. Services
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Latin America Embedded System Market Size and Volume Forecast by Applications
     9.7.1. Industrial
     9.7.2. Automotive
     9.7.3. Aerospace & Defense
     9.7.4. Consumer Electronics
     9.7.5. Manufacturing
     9.7.6. Others
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. Market Attractiveness/Growth Potential Analysis
     9.10.1. By Country
     9.10.2. By Product Type
     9.10.3. By Application
  9.11. Latin America Embedded System Demand Share Forecast, 2019-2026
10. Europe Embedded System Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Europe Average Pricing Analysis
  10.2. Europe Embedded System Market Size and Volume Forecast by Country
     10.2.1. Germany
     10.2.2. France
     10.2.3. Italy
     10.2.4. U.K.
     10.2.5. Spain
     10.2.6. Russia
     10.2.7. Rest of Europe
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Europe Embedded System Market Size and Volume Forecast by Types
     10.4.1. Hardware
     10.4.2. Software
     10.4.3. Services
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Europe Embedded System Market Size and Volume Forecast by Applications
     10.7.1. Industrial
     10.7.2. Automotive
     10.7.3. Aerospace & Defense
     10.7.4. Consumer Electronics
     10.7.5. Manufacturing
     10.7.6. Others
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Market Attractiveness/Growth Potential Analysis
     10.10.1. By Country
     10.10.2. By Product Type
     10.10.3. By Application
  10.11. Europe Embedded System Demand Share Forecast, 2019-2026
11. Asia Pacific Embedded System Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Asia Pacific Average Pricing Analysis
  11.2. Asia Pacific Embedded System Market Size and Volume Forecast by Country
     11.2.1. China
     11.2.2. Japan
     11.2.3. South Korea
     11.2.4. India
     11.2.5. Australia
     11.2.6. Rest of Asia Pacific (APAC)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Asia Pacific Embedded System Market Size and Volume Forecast by Types
     11.4.1. Hardware
     11.4.2. Software
     11.4.3. Services
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Asia Pacific Embedded System Market Size and Volume Forecast by Applications
     11.7.1. Industrial
     11.7.2. Automotive
     11.7.3. Aerospace & Defense
     11.7.4. Consumer Electronics
     11.7.5. Manufacturing
     11.7.6. Others
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Market Attractiveness/Growth Potential Analysis
     11.10.1. By Country
     11.10.2. By Product Type
     11.10.3. By Application
  11.11. Asia Pacific Embedded System Demand Share Forecast, 2019-2026
12. Middle East & Africa Embedded System Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Middle East & Africa Average Pricing Analysis
  12.2. Middle East & Africa Embedded System Market Size and Volume Forecast by Country
     12.2.1. Saudi Arabia
     12.2.2. South Africa
     12.2.3. UAE
     12.2.4. Rest of Middle East & Africa (MEA)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Middle East & Africa Embedded System Market Size and Volume Forecast by Types
     12.4.1. Hardware
     12.4.2. Software
     12.4.3. Services
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Middle East & Africa Embedded System Market Size and Volume Forecast by Applications
     12.7.1. Industrial
     12.7.2. Automotive
     12.7.3. Aerospace & Defense
     12.7.4. Consumer Electronics
     12.7.5. Manufacturing
     12.7.6. Others
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Market Attractiveness/Growth Potential Analysis
     12.10.1. By Country
     12.10.2. By Product Type
     12.10.3. By Application
  12.11. Middle East & Africa Embedded System Demand Share Forecast, 2019-2026
13. Competition Landscape
  13.1. Global Embedded System Market: Market Share Analysis
  13.2. Embedded System Distributors and Customers
  13.3. Embedded System Market: Competitive Dashboard
  13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     13.4.1. Texas Instruments Incorporated
     13.4.2. STMicroelectronics
     13.4.3. SAMSUNG
     13.4.4. Renesas Electronics Corporation
     13.4.5. Qualcomm Technologies, Inc.
     13.4.6. NXP Semiconductors
     13.4.7. Microsoft
     13.4.8. Microchip Technology Inc.
     13.4.9. Marvell
     13.4.10. KONTRON AG
     13.4.11. Intel Corporation
     13.4.12. Infineon Technologies AG
     13.4.13. Fujitsu
     13.4.14. Broadcom
     13.4.15. Arm Limited
     13.4.16. Analog Devices, Inc.
     13.4.17. Advantech Co., Ltd.
     13.4.18. Advanced Micro Devices, Inc