Embedded Systems Market Size

Embedded Systems Market Size

The global embedded systems market was valued at USD 110 billion in 2024 and is estimated to grow at 6.4% CAGR from 2025 to 2034. The rise in the automobile sector is one of the key factors across the globe that fuels the market.

The growing number of vehicles sales depicts the high demand for embedded systems in the market. Embedded systems are required to enhance vehicle safety, and performance, and therefore higher sales of vehicles are directly connected to the growth of embedded systems. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of vehicles reached 92,724,668 units in 2023. The rise in sales of vehicles acts as a catalyst for the embedded systems market to grow as a greater number of control devices are needed in each vehicle.
 

A regular vehicle contains around 25 to 35 microcontrollers and with the shift towards more advanced vehicles the number of microcontrollers has reached up-to 60 to 70 for a single vehicle. With such a rise in demand for vehicles, the embedded systems are in demand in the current market conditions. For instance, according to the International Energy Agency (IEA), electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase.
 

Consumer preferences are shifting rapidly towards the adoption of 5G technology. The adoption of 5G technology remains as the prime factor for the embedded system market to grow owing to their use in controlling functions such as network connections, touchscreen interaction and overall device management in mobile phones.
 

According to the GSM Association, the 5G technology will add USD 1 trillion to the global economy by 2030 with 5G connections rising to 5.3 billion. These growing 5G connections provide a vital opportunity for the embedded systems manufacturers and system integrators to provide solutions to the telecom companies and smartphone manufacturers.
 

Embedded systems collectively refer to the combination of computer hardware and software for the purpose of specific functions that control several devices. The embedded systems contain microcontrollers, microprocessors, memory and input/output devices which share predefine functions in larger systems. The systems have vast application uses such as in automobiles, medical devices, consumer electronics, household appliances, etc.