Embedded systems are an integral part of smart devices and include a special-purpose processor along with software for dedicated functions within a larger system. They find applications in areas like industrial automation, transportation, healthcare, home appliances and more. Embedded systems help build devices intelligently with enhanced performance, reliability and security. The increasing proliferation of IoT and growing connectivity needs across industries have fueled the adoption of embedded systems in the recent years.
The global embedded systems market is estimated to be valued at USD 174.24 Bn in 2024 and is expected to reach USD 283.12 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Key Takeaways
Key players operating in the embedded systems are Key players operating in the embedded systems market ABB Ltd, Analog Devices, Cypress Semiconductor, Fujitsu Limited, Infineon Technologies, Intel Corporation, Marvell Technology Group, Microchip Technology, Microsoft Corporation, NXP Semiconductors, Qualcomm Incorporated, Renesas Electronics, Samsung Electronics, STMicroelectronics, and Texas Instruments.
The growing adoption of IoT across industries has created new demands for embedded devices with enhanced processing power and functionality. Technological advancements have enabled the development of miniaturized and low-power embedded systems capable of handling complex operations with efficiency.
Impact of COVID-19 on Embedded Systems Market Growth
The COVID-19 pandemic significantly impacted the Embedded Systems Market Growth in the initial months. Production and supply chain disruptions hampered manufacturing activities. However, with work from home and online education gaining prominence, the demand for devices with embedded systems like laptops, tablets saw a surge. Various businesses started adopting remote working models which boosted the need for smart healthcare devices, automation systems with embedded capabilities. Though challenges prevailed in the first half of 2020, the market is recovering gradually as production resumes with safety protocols.
Market Trends
The embedded systems market is driven by a few key trends. Firstly, the emergence of artificial intelligence and machine learning capabilities in embedded devices is gaining traction. AI-enabled embedded systems can power advanced applications in autonomous vehicles, predictive maintenance, and industrial robotics. Secondly, embedded vision systems that include cameras, sensors and vision processing capabilities are witnessing increased uptake in manufacturing inspection and quality control.
Market Opportunities
The embedded systems market provides some lucrative opportunities for players to leverage. Growing connectivity in autonomous vehicles brings opportunities for advanced driving assist systems, infotainment control modules and telematics devices. Further, the rise of Industry 4.0 and smart manufacturing opens up opportunities for embedded controllers, programmable logic controllers and sensors in robotic systems, assembly lines and machinery.
Regional Concentration of Embedded Systems Market
North America dominates the embedded systems market in terms of value. The vast presence of embedded system product manufacturers, robust semiconductor industry and heavy investments in R&D activities by governments and private players make North America a leader. Furthermore, early adoption of latest technologies also support the market growth. The region accounted for over 30% share of the global embedded systems market value.
Fastest Growing Region for Embedded Systems Market
Asia Pacific is projected to witness the fastest growth in the embedded systems market during the forecast period. This is attributed to rising electronics manufacturing hubs in China, Taiwan, South Korea and expanding automotive industries in India, Japan, Thailand. Also, increasing electrification of products and rapid urbanization lead to widespread usage of smart devices containing embedded processors. Many global companies are setting up manufacturing bases to cater to the growing demand, thereby propelling the APAC embedded systems market.
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