Embedded Systems Market Research, 2031
The global embedded systems market was valued at $89.1 billion in 2021, and is projected to reach $163.2 billion by 2031, growing at a CAGR of 6.5% from 2022 to 2031.
A computer hardware and software combination created for a particular purpose is an embedded system. Additionally, embedded systems may operate as part of a bigger system. The systems may be programmable or may only perform certain functions. An embedded system is generally found in industrial equipment, consumer electronics, agricultural and processing sector equipment, automobiles, medical equipment, cameras, digital watches, home appliances, airplanes, vending machines, and others.Embedded systems engineer are revolutionising the embedded system design process and altering the way data centres are managed. These chips allow critical tasks to be transferred from software to hardware in order to save power, which is critical for power-sensitive embedded systems applications.
The global embedded systems market is expected to witness notable growth during the forecast period, owing to an increase in demand for advanced driver-assistance system (ADAS) in electric vehicles (EV)s and hybrid vehicles. Furthermore, rise in in the number of embedded systems-related research and development projects will drive the global embedded systems market growth. Moreover, demand for multicore central processing units (CPUs) in military applications is expected to propel the embedded systems industry growth during the forecast period. However, security of embedded devices is one of the main restraints that has restricted the growth of the embedded system market. On the contrary, rise of 5G and development of 5G based embedded devices is expected to provide lucrative opportunities for the growth of the market during the forecast period.
The embedded systems market is segmented into Application and Component.
Based on application, the market is segregated into automotive, consumer electronics, industrial, aerospace and defense, and others. The consumer electronics segment acquired the largest share in 2021 and is expected to grow at a significant CAGR from 2022 to 2031 for embedded systems market forecast.
On the basis of component, the market is divided into hardware and software. In 2021, the hardware segment dominated the market, in terms of revenue, and is expected to follow the same trend during the forecast period.
Region-wise, the embedded systems market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). North America remains a significant participant in the embedded systems market. Major organizations and government institutions in the country are intensely putting resources into technology to grab embedded systems market opportunity during the forecast period.
Competitive analysis and profiles of the major global embedded systems market players that have been provided in the report include, Analog Devices, Cypress semiconductors, Infineon Technologies, Intel Corporation, Microchip Technology, NXP Semiconductors, Qualcomm Incorporated, Renesas Electronics, STMicroelectronics and Texas Instruments, Inc.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the embedded systems market size segments, current trends, estimations, and dynamics of the embedded systems market analysis from 2021 to 2031 to identify the prevailing embedded systems market opportunities.
- The embedded systems market outlook is offered along with information related to embedded systems market share key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the embedded systems market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global embedded systems market trends, key players, market segments, application areas, and market growth strategies.
Embedded Systems Market Report Highlights
Market Size By 2031
USD 163.2 billion
CAGR of 6.5%
2021 - 2031
Key Market Players
Renesas Electronics, Qualcomm Incorporated, Infineon Technologies, Microchip Technology Inc., Texas Instruments Inc., Analog Devices Inc., NXP Semiconductors, Cypress Semiconductors, STMicroelectronics N.V., Intel Corporation
Global embedded systems market is witnessing a significant growth owing to growing investments in R&D by prime original equipment manufacturers (OEM)s globally. Further, rise in government investment in 5G infrastructure which will boost the deployment of 5G embedded systems in applications such as consumer electronics, energy, healthcare, telecommunication, and others is significantly propelling the growth of the global embedded systems market. The market for embedded systems is expanding due to the rising global adoption of smart homes and smart industries.
Embedded systems are renovating the chip design process and changing the way the data centers are maintained. These chips enable the transfer of critical tasks from software onto hardware to save power, which is crucial for the power-sensitive applications. Embedded systems offer flexibility of hardware and security for custom hardwired circuits. Also, embedded systems enable the customization of system on chips (SoC)s postproduction at low cost and without the need to remanufacture the chips. Embedded systems provide essential enhancements in bandwidth, signal delays, latency, power, and cost over FPGAs. Furthermore, it also takes up a less silicon die area on organic laminate substrate.
Embedded systems are increasingly prospering into networking/data centers as well as wireless base stations, memories such as solid-state drive (SSD), Hard Drives (HDD) and other applications. For instance, in March 2021, Intel Corporation launched Solid State Drive (SSD) 670p, a 144-layer quad-level cell (QLC)-based client SSD which has its application in storage and gaming. The Intel SSD 670p is based on 144-Layer QLC 3D NAND with 128 gigabytes per die and provides up to two times better read performance, 38% better random read performance and up to 50% better latency over previous generation SSDs.
Prime market players such as Intel Corporation, Qualcomm Technologies, Texas Instrument, and others are adopting new techniques to provide customers with advanced and innovative offerings. Globally, various key players and government agencies have invested in embedded systems market that strengthens their share in the market.