Embedded Systems Market Size By Component (Hardware, [ASIC & ASSP, Microcontroller, Microprocessor, Power Management Integrated Circuit (PMIC), Field Programmable Gate Array (FPGA), Digital Signal Processor (DSP), Memory], Software (OS, Middleware)], By Function (Standalone System, Real-Time System, Network System, Mobile System), By Application (Automotive, Consumer Electronics, Manufacturing, Retail, Media & Entertainment, Military & Defense, Telecom), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Mar 2020  |  Report ID: GMI117  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 250   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Embedded Systems Market size exceeded USD 100 billion in 2019 and is poised to grow at a CAGR of over 6% between 2020 and 2026. The rising trend of automation in the manufacturing sector to minimize energy, material, and labor waste is likely to accelerate the market demand.
 

In manufacturing, these embedded systems work as a programmable operating system that performs several tasks including adjusting temperature, driving, motors, networking equipment, and controlling assemble line speed. These systems are also used to monitor, control, and assist the operation of equipment, machinery, and plants.
 

Embedded System Market

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The industry players are continuously innovating new products to meet the growing demand for industrial automation, thereby gaining a competitive edge in the embedded systems market. For example, in August 2019, Micro-Star INT'L CO., Ltd. announced the launch of a high-performance embedded systems, MS-9A85. It is the world’s thinnest and cableless embedded system, which is ideally used in space-limited installation and industrial IoT software for monitoring and managing smart devices.
 

Furthermore, major market players are also implementing various business strategies to expand their businesses with the aid of industrial automation that provides high industry opportunities for embedded systems.
 

In May 2018, Schneider Electric along with Temasek announced the acquisition of Larsen & Toubro’s (L&T) electrical & automation business. Through this acquisition, the company will expand its industrial automation and low voltage product business worldwide.
 

Embedded Systems Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 100 Billion
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 6% 2026 Value Projection: USD 160 Billion
Pages: 250 Tables, Charts & Figures: 314
Geographies covered (16): U.S., Canada, UK, Germany, Spain, France, Italy, Russia, China, India, Japan, South Korea, ANZ, Brazil, Mexico, South Africa, GCC
Segments covered: Component, Function, Application, and Region
Companies covered (31): Analog Devices, Inc, ARM Holdings, Atmel Corporation, Broadcom Limited, Cypress Semiconductor Corporation, Fujitsu Limited, Infineon Technologies, Intel Corporation, Lattice Semiconductor, Marvell Technology Group Ltd., Microchip Technology Inc., NXP Semiconductor N.V., Qualcomm Technologies Inc., Renesas Electronics Corporation, Samsung, STMicroelectronics, Texas Instruments, Inc., Toshiba Corporation, ENEA Software AB, Express logic, Graphene Semiconductor Services Private Limited, Green Hills Software, HCL Technologies Limited, IBM Corporation, Mentor Graphics Corporation, Microsoft Corp., National Instrument, Qualitat Systems, Qualcomm Inc., SEGGER Microcontroller GmbH, VIA Technologies, Inc.
Growth Drivers:
  • Growing usage of embedded systems in smart homes
  • Increasing demand in healthcare applications Rapidly growing demand for wearable devices
  • Growing need for optical sensors in medical applications
  • Rising demand for embedded systems in military
  • Increasing adoption of industrial automation and robotics
  • Rising adoption of embedded system in automotive electronics
  • Growing adoption for artificial intelligence and IoT
  • Rapidly growing demand for wearable devices
Pitfalls & Challenges:
  • Complex designs of embedded systems

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Growing vehicle safety applications to drive the demand for operating systems

Embedded software segment is anticipated to witness around 4% growth till 2026 driven by its wide adoption in the automotive sector, offering a high scale of flexibility & reliability for several vehicle applications.
 

The common operating software used in the embedded system are C, C++, and ADA, while some specialized systems require Windows CE, Linux, Nucleus RTOS, and OSE. Furthermore, the rising demand for enhanced in-vehicle infotainment systems, such as parking assistance, navigation systems, and adaptive cruise control, is expected to drive the embedded systems market revenue.
 

The development of these technologies enables manufacturers to stabilize the car in a critical situation and prevent the driver from steering out of control. Therefore, to cater the high demand in the market, embedded system providers are coming up with new technological innovations and strategic partnerships to enhance their market position.
 

For example, in September 2019, Intron Technology Holdings Limited announced its collaboration agreement with Wind River. Through this agreement, the companies will develop an embedded software system for automotive electronics. This will help Intron Technology Holdings Limited to promote its growth in the ADAS system and autonomous vehicles in China.
 

Real-time system is likely to gain lucrative opportunities from the defense sector

Embedded System Market By Function, 2015-2026

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The real-time system segment is expected to register gains at over 9% through 2026. This can be attributed to advent of smart sensors, advanced human-machine interface, and IoT in embedded systems.
 

The real time function of embedded system is bounded with time duration, such that the task needs to be accomplished in the given interval of time. Therefore, the real time functioning of embedded systems increase its implementation in industrial robots, digital cameras, wireless router, gaming consoles, microwave ovens, etc. The segment is also gaining high attraction in the weapon defense system, which works as a naval destroyer by shooting down the incoming missiles.
 

Rising demand for emission control applications in automotive to propel the market size

The automotive sector is the fastest-growing application segment in the market owing to growing demand for infotainment and ADAS systems in vehicles. Also, automobile manufacturers are implementing embedded systems in their vehicles for various functions including security, ignition, and audio systems.
 

Adding to this, the advanced use of embedded systems in vehicles helps in pollution control, accelerating their demand in the global market. Stringent regulations on low carbon emission requirements will further add an advantage for the market growth.
 

Technological advancement in the U.S. embedded systems market

U.S. Embedded System Market 2015-2026

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North America accounts for the dominant market share with over 45% due to presence of major companies in the region such as Intel and Microsoft. Moreover, rising adoption of IoT technology in the U.S. and increasing consumer demand for smart & connected devices to reduce human intervention will positively impact the market growth.
 

In February 2017, Visa, a global payment technology company based in the U.S., partnered with IBM Watson to provide the customers of IBM’s Big Blue Watson IoT platform access to Visa services through the card’s tokenization offerings. This new platform will enable Visa to drive the frequency of user payments and assist the company to gain a competitive edge in the market share.
 

Business acquisitions - The major industry growth strategy

Prominent embedded systems industry players include Atmel Corporation, Texas Instrument, NXP Semiconductors, and Microsoft Corporation. The market is highly competitive on  account of presence of global leaders, accommodating major shares in the market, whereas new entrants penetrating the market are implementing modern technologies, such as IoT and machine learning, to deliver innovative products and gain a competitive edge in the market. The companies in the industry are majorly focusing on merger & acquisition strategies to strengthen their position among competitors.
 

In December 2017, STMicroelectronics announced the acquisition of Atollic, a software development tool specialist. Through this acquisition, the company will accelerate its offerings for MCUs with the addition of Atollic’s TrueSTUDIO, enhancing its portfolio for embedded systems.
 

Similarly, in July 2018, the company acquired Draupner Graphics, a graphical user interface software specialist. Through this acquisition, the company will use Draupner Graphics’s TouchGFX software framework, which offer enhanced animation and graphics for embedded graphical user interface with low power consumption and minimal resource requirement. This will help the company to expand its MCU portfolio.
 

The embedded systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
 

Market by Component

  • Hardware
    • ASIC & ASSP
    • Microcontroller (MCU)
    • Microprocessor (MPU)
    • Power Management Integrated Circuit (PMIC)
    • Field programmable gate arrays (FPGA)
    • Digital Signal Processor (DSP)
    • Memory
  • Software
    • Operating System
    • Middleware

Market by Function

  • Standalone System
  • Real-time System
  • Network System
  • Mobile System

Market by Application

  • Automotive
  • Consumer Electronics
  • Manufacturing
  • Retail
  • Media & Entertainment
  • Militiary & defense
  • Telecom

Other The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • Spain
    • France
    • Italy
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
  • South America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • GCC
       

Frequently Asked Questions (FAQ) :

North America accounts for the dominant market share with over 45% due to presence of major companies in the region such as Intel and Microsoft.
Embedded software segment is anticipated to witness around 4% growth till 2026 driven by its wide adoption in the automotive sector, offering a high scale of flexibility & reliability for several vehicle applications.
Prominent embedded systems industry players include Atmel Corporation, Texas Instrument, NXP Semiconductors, and Microsoft Corporation.
The automotive sector is the fastest-growing application segment in the market owing to growing demand for infotainment and ADAS systems in vehicles.

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