Embedded Systems Market Overview

“The Global Embedded Systems Market is expected to grow rapidly at a 4.54% CAGR consequently, it will grow from its existing size of from $170 billion in 2023 to $237 Billion by 2030.”

What is an Embedded System?

An embedded system can be described as a computer with a microprocessor hardware system that includes software designed to serve a particular purpose in either an individual system or as a component of a larger system. The core of the system it is an integrated circuit that was designed to perform computations for real-time operation.

Complexity ranges from a simple microcontroller to a series of processors that are connected to networks and peripherals; from a user interface that is not present to graphical user interfaces that are complex. The degree of complexity of an embedded system differs greatly based on the function that it was designed for.

The embedded system applications vary from microwaves and digital watches as well as hybrid cars and Avionics. Around 99 percent of the microprocessors produced are used to power embedded devices.

How an Embedded System Works

The embedded systems are operated through microcontrollers or digital signals processors (DSP) or applications-specific integrated circuits (ASIC) and field-programmable gates arrays (FPGA), GPU technology as well as gate arrays. The processing devices are connected with devices that are designed to handle mechanical and/or electric interfacing.

Instructions for programming embedded systems known as firmware are stored in flash memory or read-only memory chips, which run on only a limited amount of hardware. Embedded systems are connected to the world outside via peripherals, connecting devices for input and output.

Basic Structure of an Embedded System

The fundamental design of an embedded system comprises the following parts:

• Sensor Measures it and transforms that physical amount into an electrical signal that can later be read by an embedded system engineer or any other electronic instrument. The sensor saves the quantity measured in memory.
• A-D Converter: This converter converts the analog signal transmitted by the sensor to digital signals.
• Processors and ASICs examine the data to assess the results and then save it in memory.
• D-A Converter: A digital-to analog converter transforms digital data that is fed to the processor into analog data
• Actuator: A actuator compares the output generated by the D-A converter to the actual output that is stored, and stores the output that was approved.

It assists in facilitating the specific function and integrates within the larger mechanical or electrical system. It is a powerful control of the physical operations of the system, by providing real-time constraints to the system. Systems embedded run on microcontrollers, digital signal processors (DSP) as well as applications-specific integrated circuits (ASIC) and Field-programmable Gate Arrays (FPGA), GPU technology gates and other gate arrays. These processing systems can be combined with devices that handle mechanical or electric interfacing.

The most notable feature embedded systems is that they are focused on a specific task. They accomplish a specific task within the larger system. For instance, a cell phone isn't an embedded device since it's a blend of embedded systems which enable it to carry out the functions of a general-purpose device.

Embedded system hardware is mainly microprocessor- or microcontroller-based. A common industrial microcontroller is unsophisticated compared to the common enterprise desktop computer and usually depends on a simpler, less-memory-intensive program environment. It is a great choice for a variety of applications, such as electronic devices household appliance, wearable gadgets health monitoring devices and many more.

Demand Outlook

This market for embedded systems represents the one for computer systems that are integrated with other systems or devices to manage or monitor their activities. They are built to carry out specific functions and are employed in many applications such as medical, automotive industrial automation, consumer electronic.

They are built to be extremely robust and reliable with very low power consumption and tiny size. They are able to be programmed to carry out a variety of functions like controlling machines as well as keeping track of sensor data gathering and transferring data, as well as managing resources and power.

In addition, there is a growing demand for automation and connected devices, advances of microprocessor technologies, IoT adoption, smart buildings and homes, as well as medical devices. In addition, the rise of new technologies, advancements and the rising demand for hybrid and electric automobiles are the primary reasons behind the rapid development of the embedded system market.

The Internet of Things (IoT) popularity drives demand for embedded systems that capture and transmit information through connected gadgets to cloud-based apps. The data is then utilized for analysis and decision-making.

The advances with microprocessors, like small size, low power consumption, as well as powerful processing capabilities enable the creation of more advanced and sophisticated embedded systems. This has contributed to the worldwide embedded systems market's growth over the past few years.

However, the cost of development and the difficulty of integration will hinder growth in the market. Integration of embedded systems to existing systems or devices is a lengthy and complex process which requires specialist expertise and expertise. This may limit the use that embedded devices can have in certain industries and applications.

The COVID-19 epidemic has an increased demand for healthcare-related applications. As healthcare facilities around the globe struggled to cope with the epidemic the need arose for innovative solutions to control and manage the care of patients. This has led to increased the need for medical equipment and devices like ventilators, monitors and diagnostic tools which heavily rely on embedded system technology.

It is believed that the Global Embedded Systems Market is primarily driven by the increasing need for devices like intelligent electricity meters. Alongside, the rising need for smartphones, laptops computers, desktops, communication systems, and other devices all over the world are important factors in the expansion in the industry.

Technology advancements along with the decrease in costs of microcontrollers, are anticipated to have a positive impact on the market over the forecast time. The embedded systems are employed in many industries with end-uses. In turn, the increasing demand from applications like healthcare, automotive aerospace, aeronautics and space and electronics for consumers is predicted to drive the growth of the market over the forecast time.

Furthermore, continuous research and development to bring new and more efficient electronic devices will positively affect the growth of Global Embedded Systems Market over the next few years. In addition, a rise in need in ADAS within EV or hybrid automobiles is driving the growth of the market.

Embedded systems play crucial roles in the re-designing of the automobile industry. These systems are employed in ADAS technology, including hybrid and electric vehicles. The increase in demand for hybrid and electric vehicles as a result of the increasing consciousness among people regarding the state of depletion of the earth has begun the development of this market.

But security and lower longevity concerns associated with embedded systems in various process-related applications have slowed the expansion that this sector is experiencing. The design constraints associated with embedded systems that are real-time are hindering the growth that is expected from this Embedded Systems Market.

However, the main industry players are using diverse business strategies to expand their business with the help of industrial automation, which offers significant opportunities in the industry market.

Key Takeaway

• North America has accounted for 51% of revenue by 2023.
• Asia Pacific has held a 22.5% revenue share as of 2023.
• Based on its purpose, the standalone segment had 67% of the revenue by 2023.
• The mobile segment has earned the equivalent of 11.8% by 2023.
• Through hardware, ASIC & ASSP segment has produced a 30.7 percent revenue share by 2023.
• Microprocessors microprocessor segment has taken the 21.8 percentage revenue share in 2023.
• Through Application. The manufacturing sector has been responsible 10.5 percent of the revenue share by 2023.

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Embedded Systems Market Dynamics

Growth Factors

The need for accurate and reliable, precise and reliable testing is the main factor that has driven to the current market. The many factors that are driving the market include:

• Growing demand for automation
• The rising usage of connected devices
• Demand for hybrid and electric automobiles

Growth Drivers

It is predicted that a variety of factors drive the embedded system market. They can be summarized as follows:

• In the last few years there has been an increase in demand for embedded systems using multi-core technology.
• Embedded graphics as well as the increasing demand from consumers in the automotive industry are likely to increase the growth of the market.
• Research and development that continues to develop more efficient and smarter electronic devices is anticipated to influence the growth of the global embedded market for systems positively.
• A rise in market demand ADAS in EVs as well as hybrid cars has also contributed to the market expansion. Secure embedded systems play vital roles in the re-designing of the automobile industry.
• Electronic payment options are anticipated to boost the worldwide embedded system market over the forecast period.

Additionally, the wide-spread integration of embedded systems into areas like aeronautics, rail, space and mobile communications opens up potential growth opportunities for players in the market.

Restraints

While a variety of factors have been identified to boost the development of the embedded systems market, analysts from MRS have also pointed out that certain factors are likely to hinder the expansion of the embedded systems market in the near future. They include:

• Security, cyber-attacks and shorter life span concerns that are associated with the use embedded technology in a variety of processes are restricting the expansion in this industry.
• Design limitations for embedded systems that are real-time are hindering the rapid growth in the field.

Opportunities

Growing use of embedded systems for healthcare devices

Presently, embedded systems have many benefits in the medical industry. They have been used in numerous devices, such as imaging systems, which monitor vital indicators, CT scans, and MRIs. 

Furthermore embedded systems allow health professionals to monitor patients from a distance. In addition, embedded systems can be used to design smart bed in hospitals. Therefore, the increasing use for embedded technology in the health industry can provide opportunities for growth for those who sell into the market.

Challenges:

Insufficiently skilled specialists

These embedded systems are becoming more complex due to the ever-growing use of modern technologies. But there is a deficiency of highly skilled professionals with an in-depth understanding of embedded systems. Thus, the lack of skilled professionals could hinder the development of this market in the coming years.

Embedded Systems Market Segment Analysis

Application Insights:

Based on the type of applications, the embedded system market is classified into consumer electronics, automotive manufacturing, aerospace, defense, and other categories with automotive making up the majority of the market. This is due in part to the growing application of embedded systems to modern automobiles, which are getting more sophisticated and complex every year.

The embedded systems are utilized in many automotive applications, such as driver and safety systems, infotainment and security systems and control systems for powertrains. These systems are based on a mix of software and hardware components, and are crucial to the safety of modern vehicles and effective operation.

Component Insights

Based on parts, the integrated system market is split into software and hardware, with the latter taking the largest share portion of this market. Hardware is the term used to describe the physical components of an embedded system like sensors, microprocessors and electronic components. Hardware components are crucial for creating embedded systems.

They are expensive and crucial components of embedded systems, and many companies invest a lot of money in the creation and manufacture of these components.

Additionally hardware components are usually more tangible and visible in comparison to software, which makes them simpler for customers to grasp and assess. This could lead to more emphasis on hardware in sales and marketing strategies.

The software market is becoming more important because embedded systems are becoming more complex and advanced. Software plays an essential function in controlling and managing the hardware parts of embedded systems and firms that develop software of high quality can enjoy an advantage on the market.

Competitive Landscape of the Embedded Systems Market

• Qualcomm Incorporated
• Cypress Semiconductors
• Infineon Technologies
• Analog Devices Inc.
• Microchip Technology Inc.
• STMicroelectronics N.V.
• Intel Corporation
• Renesas Electronics
• Texas Instruments Inc.
• NXP Semiconductors

Recent Developments in Embedded Systems Market

Nov 1, 2023: Renesas Unveils Industry’s First MCUs Based on Arm Cortex-M85 Core

In September 2022, Marvell unveiled its LiquidSecurity 2 (LS2) hardware security module (HSM) adapter, designed for general purposes and payment processing. LS2 is built on the company’s technologies, deployed across the top tier hyperscale clouds. The new Marvell HSM adapter offers high performing cryptographic acceleration and processing, including hardware-secured storage of up to one million encryption keys for AES, RSA and ECC encryption algorithms, and 45 partitions for multi-tenant use cases.

In May 2022, Broadcom acquired VMware for approximately US$ 61 Billion in cash and stock. VMware, as part of Broadcom, is likely to offer enterprise customer’s greater choice and flexibility to address the most complex IT infrastructure challenges. This is expected to accelerate software scale and growth opportunities for Broadcom, with pro forma revenue of more than US$ 40 billion, including 49% software revenue.

In January 2022, AMD completed the acquisition of Xilinx ‒ officially the largest acquisition in the semiconductor history. The acquisition brings together two industry giants with complementary product lineups, customers, and market expertise, creating a leading high-performance and adaptive computing company.

On August 2021, Analog Devices, Inc. announced the completion of its previously announced acquisition of Maxim Integrated Products, Inc. The combination further strengthens ADI’s position as a high-performance analog semiconductor company with trailing twelve-month revenue of over $9 billion1, industry leading margins, and free cash flow of over $3 billion1 on a pro forma basis.

In March 2021, Qualcomm announced the launch of its new Snapdragon 888 5G mobile platform, designed to deliver high-performance computing capabilities for mobile and embedded devices.

In December 2020, Infineon Technologies announced the acquisition of Cypress Semiconductor to expand its product portfolio and strengthen its position in the embedded system market.

In February 2020, Renesas Electronics announced the acquisition of IDT to expand its product portfolio and strengthen its position in the embedded system market.

In September 2019, Intel launched its new 10th Gen Intel Core processors, designed to deliver high-performance computing capabilities for embedded systems and other IoT devices.

In August 2019, STMicroelectronics and Tieto announced a partnership to develop advanced IoT solutions for industrial and automotive applications.

Embedded Systems Market Regional Insights

In terms of geographical location, North America dominates the market since the region has a variety of leading companies operating in the embedded system sector, in addition to numerous end-users from industries like aerospace, automotive healthcare, aerospace and industrial automation .

The high volume of regional investment in research and development is the driving force behind growth in the North American embedded system market. Businesses operating in North America are investing heavily in the development of new and innovative embedded systems that are aiding in the growth of the market.

Another reason for the expansion of North American embedded system market is the rising need for devices that are connected to the internet and other systems. Since more gadgets connect to internet and to each other and more devices are connected to the internet, the demand of embedded devices that are able to handle the increasing connectivity is rapidly growing.

Europe embedded systems market is another important market for embedded systems with a particular emphasis on research, innovation and development. The growing use of artificial intelligence and automation across various industries fuels the market. These technologies heavily rely on embedded systems for operation and, as they become more commonplace, it will increase the need for embedded systems that are able to manage these tasks.

The Asia-Pacific region Asia-Pacific is expected to see the highest CAGR due to diverse factors, like the increasing use of devices that are connected, growing demand for automation, as well as the emergence in smart city development. The region has numerous large markets, such as China, Japan, India along with South Korea, major global market players for embedded systems. These countries are renowned for their manufacturing capabilities, large investment on research and development and a growing need for integrated systems in a variety of applications across the Asia-Pacific region.

South Korea is one of the Asia-Pacific regions' top market for embedded system. It is aided by a strong support from the government in research and development, as well as an exceptionally educated workforce. South Korea is home to a number of top makers of embedded systems as well as many end-users from industries like the automotive industry, consumer electronics in addition to industrial automation.

One of the main factors driving the South Korean embedded system market is the growing demand for connected systems and devices. In the South Korean government has set the goal of achieving a 5G-to-5G penetration rate of 50 percent by 2022. This will drive advancement in the creation of new and advanced embedded systems capable of handling the increasing connectivity.

Segments Covered in the Embedded Systems Market

Embedded Systems Market By Function

• Standalone System
• Real-Time System
• Network System
• Mobile System

Embedded Systems Market By Application

• Automotive
• Consumer Electronics
• Manufacturing
• Retail
• Media & Entertainment
• Aerospace and Defense
• Telecom
• Others

Embedded Systems Market By Components

• Hardware

o   ASIC & ASSP

o   Microcontroller

o   Microprocessor

o   Power Management Integrated Circuit (PMIC)

o   Field Programmable Gate Array (FPGA)

o   Digital Signal Processor (DSP)

o   Memory

• Software

o   OS

o   Middleware

Embedded Systems Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Frequently Asked Questions:

What is the embedded systems market size?

Global Embedded Systems Market is expected to grow rapidly at a 4.54% CAGR consequently, it will grow from its existing size of from $170 billion in 2023 to $237 Billion by 2030.

Who are the prominent players operating in the embedded systems market?

The major players operating in the embedded systems market are Intel Corporation, Renesas Electronics, Texas Instruments Inc., NXP Semiconductors, Qualcomm Incorporated, Cypress Semiconductors, Infineon Technologies, Analog Devices Inc., Microchip Technology Inc., STMicroelectronics N.V. and Others.

Which are the driving factors of the embedded systems market?

The driving factors of the embedded systems market are the growing demand for electric and hybrid vehicles, increasing demand for automation, and growing use of connected devices.

Which region will lead the global embedded systems market?

North America region will lead the global embedded systems market during the forecast period 2023 to 2030.

1. SUMMARY

1.1. Embedded Systems Market Overview

1.2. Key Insights

1.3. Report Scope

1.4. Research Methodology

1.5. Frequently Asked Questions

1.6. Chapter Outlines

2. DECISION-MAKING SUMMARY
3. INTRODUCTION

3.1. Overview of Embedded Systems

3.2. Key Historical Events

3.3. Structure

3.4. Biochemical Interaction

3.5. Target Indications

3.6. Advantages of Embedded Systems

3.7 Challenges associated with Embedded Systems

3.8. Future Perspectives.

4. MARKET LANDSCAPE

4.1. Methodology

4.2 Embedded Systems: Developer Landscape

4.2.1. Analysis by Year of Establishment

4.2.2. Analysis by Company Size

4.2.3. Analysis by Location of Headquarters (Region-wise)

4.2.4. Analysis by Location of Headquarters (Country-wise)

4.2.5. Analysis by Year of Establishment, Company Size and Location of Headquarters (Region-wise)

4.2.6. Most Active Players

5. COMPANY

5.1. Company Overview

5.1.2 Management Team

5.1.3. Product Portfolio

5.1.4. Recent Developments and Future Outlook

6. PARTNERSHIPS AND COLLABORATIONS

6.1. Partnership Models

6.2. Embedded Systems: Partnerships and Collaborations

6.2.1. Analysis by Year of Partnership

6.2.2. Analysis by Type of Partnership

6.2.3. Analysis by Year and Type of Partnership

6.2.4. Analysis by Type of Partner

6.2.5. Analysis by Year of Partnership and Type of Partner

6.2.6. Analysis by Type of Partnership and Type of Partner

6.2.7. Analysis by Type of Partner and Parent Company Size

7. ACADEMIC GRANTS ANALYSIS

7.1. Methodology and Key Parameters

7.2. Embedded Systems: Academic Grants Analysis

7.2.1. Analysis by Year of Grant Award

7.2.2. Analysis by Amount Awarded

7.2.3. Analysis by Funding Institute Center

7.2.4. Analysis by Support Period

7.2.5. Analysis by Funding Institute Center and Support Period

7.2.6. Analysis by Type of Grant Application

7.2.7. Analysis by Purpose of Grant

8. PUBLICATION ANALYSIS

8.1. Analysis Methodology and Key Parameters

8.2. Embedded Systems: Publication Analysis

8.2.1. Analysis by Year of Publication

8.2.2. Analysis by Type of Publication

8.2.3. Analysis by Type of Conjugate

8.2.4. Analysis by Target Indication

8.2.5. Analysis by Copyright Holder

8.2.6. Word Cloud: Emerging Focus Area

8.2.7. Most Active Publishers: Analysis by Number of Publications

9. SUCCESS PROTOCOL ANALYSIS

9.1. Methodology and Key Parameters

9.2. Key Assumptions and Scoring Criteria

9.3. Success Protocol Analysis

9.4. Assessment of Approved Embedded Systems

10. Appendix 1: Tabulated Data
11. Appendix 2: List of Companies 

1. Qualcomm Incorporated
2. Cypress Semiconductors
3. Infineon Technologies
4. Analog Devices Inc.
5. Microchip Technology Inc.
6. STMicroelectronics N.V.
7. Intel Corporation
8. Renesas Electronics
9. Texas Instruments Inc.
10. NXP Semiconductors

 

Research Methodology